European Commission President Ursula von der Leyen has urged the EU to simplify its regulations on companies operating in the region to boost the bloc’s economic growth. According to the EU chief, the bloc needs to become more competitive against the likes of China and the U.S., where they use “one financial system, one financial capital.”
Citing the U.S. as an example of a single federal entity, President Ursula said Europe needs to adopt a handful of other financial centers rather than the 27 individually supervised financial systems within the bloc.
She also noted that there are over 300 trading venues across the Union, calling it “fragmentation on steroids.” von der Leyen says the goal of the Savings and Investment Union is to create a single, deep, and liquid capital market.
The EU Chief has also said she plans to propose to EU leaders at a March Alden Biesen summit that they endorse a joint single-market roadmap to 2028. Her pledge comes as capitals push for more focus on Europe’s growth in an increasingly uncertain global economy.
von der Leyen identifies regulations as barriers to growth in Europe
In a closed-door meeting with ambassadors from EU member countries, President von der Leyen discussed barriers to growth in Europe, highlighting burdensome regulations and energy prices as major factors. According to the EU chief, the region should strive to strike a deal among all 27 member states.
However, von der Leyen notes that different ways to get around the objections of capitals will be considered to prevent “a lack of progress or ambition” if that proves impossible in vital areas of economic policy.
She argues that the only solution is to improve the bloc’s competitiveness to support its drive for independence.
Meanwhile, von der Leyen warned in a letter to national leaders on January 9 that the EU is lagging in a world increasingly shaped by raw power, strategic rivalry, and weaponized dependencies. Her concerns come as EU leaders prepare to meet for a working retreat at Aiden Biesen castle in the Belgian countryside on January 12.
European Council summons EU leaders, Germany proposes deregulation
Last December, European Council President António Costa summoned EU presidents and prime ministers to an informal retreat in rural Belgium scheduled for February 12 this year. Top of the agenda is how to integrate the EU’s single market and leverage the EU’s economic size to ensure the continent is not sidelined.
According to Costa, it is essential for the EU to remain calm and serene, and to continue striving to be constructive, especially when dealing with President Donald Trump. However, he added that the relationship between Brussels and Washington is not equal.
Costa previously emphasized that his greatest challenge since taking office has been stabilizing the EU-U.S. relationship. The dynamics between the two economic powers are currently different from what they once were, the European Commission president acknowledged.
On the other hand, Germany is strongly advocating for slashing regulations if the EU wants a single market. The country has warned the bloc’s leadership that it will only be able to move ahead with merging its national economies if it does not impose additional bureaucratic burdens on industry.
Meanwhile, the position paper recently circulated in Berlin, Germany, notes that fixing current barriers to trade within the bloc’s common market will require specific, bold, and in some cases, uncomfortable actions. It will also require countries to accept voluntary national restrictions in the interest of the bloc’s common market.
Source: https://www.cryptopolitan.com/european-chief-demands-swift-cut-red-tape/
