Explore Our Newsroom
10 July 2026
In his recent paper published by Tax Notes International, Baker McKenzie Tax Partner Scott Levine examines how targeted tax reforms could help strengthen Europe’s innovation ecosystem and global competitiveness. Drawing on the Draghi Report, the Franco-German FIVE Report and recent EU policy initiatives, the paper explores the structural factors that have limited Europe’s ability to scale technology companies despite its strong scientific and engineering talent base.
The paper analyzes a series of potential reforms, including harmonized employee equity compensation rules, a European framework for startup investment incentives, transferable R&D tax credits, loss carryforward harmonization and coordinated full expensing for business investment. It also considers how these measures could be implemented within existing EU legal frameworks while remaining compatible with global minimum tax rules.
The analysis highlights the role tax policy can play in attracting investment, supporting innovation, and enhancing Europe’s long-term economic competitiveness.
The full article can be read here.