Why would they "normalize"? Do you think Microsoft, Amazon, Apple, Amazon, etc. are going to relocate to the EU or something? Are all the venture capitalists going to flock to Spain?

The mechanics driving compensation arent "normal." American pay is driven by the underlying mechanics. The USA didn't just randomly win at tech.

There are real factors that could reduce US compensation, but calling that "normalization" assumes the current gap exists for no reason. It exists because the US software industry is structurally different from most of Europe.