Subvention => The government gives you free money if they believe that your startup is "good". In practice, there is some corruption (example: I will grant you a 2 million euros subvention if you casually happen to subcontract all the work to mi niece's company for 1.9 million). Even if you find honest people, there is A LOT of bureaucratic stuff to do to be eligible.
And some of the problems you and Vargas relate are hardly unknown in the entrepreneurial backwaters of the US although it's only in some particularly obnoxious very political cities where the local governments can really get in your way. Which of course lends itself to obvious solutions given how mobile our society is.
Anyway, good luck improving things over there!