Analysis: Trump's trade and tax policies set to widen EU-US innovation gap in 2026

Analysis: Trump's trade and tax policies set to widen EU-US innovation gap in 2026

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Analysis: Trump's trade and tax policies set to widen EU-US innovation gap in 2026
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As 2025 ends, the EU struggles to counteract negative economic impacts from a US-EU trade deal and Trump's 'Big Beautiful Bill', which incentivizes investment in the US. A report shows investor frustration, with only 55% sticking to investment plans and 45% favoring US investments. The EU's slow reforms and a significant funding gap in AI and healthcare threaten its competitiveness, leading to massive investments in the US by European companies. The EU is now aggressively pursuing deregulation to retain talent and capital, but faces political backlash.

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