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It’s Time for Pro-Innovation, Atlanticist European Leadership

It’s Time for Pro-Innovation, Atlanticist European Leadership
The EU is at a strategic crossroads when it comes to techno-economic policy. As the new Commission and Parliament take office, they must choose between fidelity to the transatlantic alliance and “strategic independence,” as well as between maintaining regulatory hostility toward large tech companies and unleashing innovation in Europe.

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The European Union is facing a critical decision on its techno-economic policy as the new Commission and Parliament take office. The EU must choose between maintaining its alliance with the United States or pursuing "strategic independence," as well as between continuing to regulate large tech companies or unleashing innovation in Europe. The Digital Markets Act (DMA) is an example of the EU's heavy-handed competition policy, which imposes limitations and costs primarily on large U.S. technology firms. However, some political leaders, like French President Emmanuel Macron, are calling for softer competition rules to support EU growth and create European techno-industrial champions. The EU also faces a choice between Atlanticism and strategic independence in the face of a rising China. Europe's decisions will determine its future and its position as a leading global power. Now is the time for the EU to prioritize policies that unleash innovation and recommit to the transatlantic partnership that is essential for Western leadership in the 21st century.