The US Government is not a major funder of frontier labs (who are almost exclusively VC and private money funded)...
> as electricity is considerably more expensive here than in the US or China
Yes, there are government policy reasons behind why this is the case. Some would argue that these policy decisions are a net negative for the EU.
> If you ask the people who vote, they'll put safety, grocery and gas prices way above EU's LLM capabilities.
Fair point, these are good things to focus on. However, EU citizens are going to love it when there are no frontier-tech opportunities left in their countries, with everything in this area having to be imported from the US and China (note that just because Chinese firms make open weight models available now, this could easily change very quickly in the future for a variety of reasons).