What Business Leaders Should Know About the Next Phase of the U.S.-EU Partnership
Artificial intelligence, digital infrastructure, and economic security are reshaping one of the world's most important commercial relationships. As governments on both sides of the Atlantic rethink how they regulate, build and deploy technology, companies now face a policy environment where AI, industrial strategy, trade and national security are becoming inseparable.
On July 21, 2026, Meridian International Center convened a Global Business Briefing featuring Members of the European Parliament Kathleen Van Brempt, Vice-President of the S&D Group (delegation chair); Christel Schaldemose, Vice-President of the European Parliament; and Lina Gálvez Muñoz, Chair of the Women's Rights and Gender Equality Committee. Tom Geier, Vice President and Head of the Americas for Government Affairs and Public Policy at HP Inc., delivered introductory remarks as the program's corporate host. The discussion explored how the United States and Europe can strengthen cooperation on AI, digital policy, trade and economic security while maintaining competitiveness in a contested geopolitical environment.
1. Europe is pairing digital regulation with industrial strategy
For much of the past decade, Europe's digital agenda focused on establishing rules for data privacy, online platforms, and artificial intelligence. That focus is expanding. Leaders described a growing emphasis on strengthening Europe's capacity to develop AI, advanced manufacturing and digital infrastructure while reducing strategic dependencies in critical sectors. The proposed Industrial Accelerator Act exemplifies that shift by using public procurement and industrial policy to encourage investment in technologies deemed essential to Europe's long-term competitiveness. This represents a significant evolution in Europe's economic strategy, moving beyond a purely open-market approach toward one that places greater weight on resilience, reciprocity and domestic industrial capacity while maintaining partnerships with trusted allies.
2. Digital resilience is becoming a national security priority.
Cloud computing, AI models, cybersecurity systems, and digital platforms are now being evaluated through the same lens as energy grids, telecommunications networks, and other critical infrastructure. Governments are placing greater scrutiny on where data is stored, who controls essential digital services and whether strategic dependencies could create vulnerabilities during periods of geopolitical tension. Denmark's reliance on U.S. technology providers illustrates why many European governments are investing more heavily in domestic digital capabilities—not to replace trusted partnerships, but to strengthen resilience and ensure critical services remain reliable in times of disruption. For businesses, demonstrating security, transparency, and long-term reliability is becoming just as important as delivering innovative technology.
3. The next phase of AI leadership is deployment.
Establishing rules for artificial intelligence is only one part of the competitiveness equation. Long-term advantages will depend on how quickly governments, businesses and educational institutions integrate AI into everyday operations while preparing people to use it effectively. AI policy must extend beyond governance frameworks to include workforce development, public sector modernization and enterprise adoption. Experiences from classrooms illustrate the challenge: students often perform well with generative AI at their fingertips but struggle when asked to complete the same tasks independently. As AI becomes embedded across the economy, maintaining the human skills that underpin innovation will be just as important as deploying the technology itself.
4. Economic security is redefining trade policy.
Trade policy is being shaped by strategic resilience rather than market access alone. The Industrial Accelerator Act illustrates how governments are beginning to use public procurement, domestic manufacturing and industrial policy to strengthen sectors considered critical to long-term competitiveness. Europe is rethinking longstanding assumptions about globalization by placing greater emphasis on reciprocity, trusted supply chains, and reducing vulnerabilities in strategic industries. While maintaining an open economy remains a priority, governments are now willing to use industrial policy to build domestic capacity where economic security is at stake. For multinational companies, trade policy, technology policy and investment strategy are becoming more interconnected.
5. Strategic autonomy does not mean isolation.
The discussion reinforced that the United States and Europe remain indispensable partners despite ongoing disagreements over digital regulation, industrial policy and trade. Democratic allies share common interests in strengthening AI leadership, securing critical supply chains, and reducing strategic dependence on geopolitical competitors. At the same time, preserving the transatlantic relationship will require continued engagement between governments and the private sector as both sides pursue their own approaches to digital governance and economic security. In an era where technological leadership shapes geopolitical influence, sustained dialogue will be essential to ensuring policy differences do not undermine one of the world's most important economic partnerships.
Project summary
| What Business Leaders Should Know About the Next Phase of the U.S.-EU Partnership | July 2026 | |
|---|---|
| Program Areas: | Corporate Diplomacy |
