This share prices have a 15 minute delay and are shown in the local time of the market in which the quote is displayed.
Reducing the regulatory burden in Europe
BusinessEurope, the main European business association in Brussels representing employers of all sizes in the private sector through 42 national business associations from 36 countries in the continent, released various reports with concrete actions to improve competitiveness of the European economy. Among the different proposals there are many references to reduce the regulatory burden for European companies with less and smarter regulation. BusinessEurope is aligned with recent Draghi and Letta reports which put the challenge of regulatory burdens and EU law simplification among the top priorities to boost productivity and economic growth.
- Regulatory burden, the starting point:
- Regulation is seen by more than 60% of EU companies as an obstacle to investment, with 55% of SMEs flagging regulatory obstacles and the administrative burden as their greatest challenge.
- During the last 5 years, the EU adopted 13,000 legislative acts (vs 3,500 in the US). This mass of legislation was largely ineffective in removing existing Single Market barriers and brought major reporting and compliance costs for European companies.
- As a result, our Single Market is underdeveloped with intra-EU trade stagnated at around 20% of EU GDP since 2007 vs more than 70% of GDP for intra-US trade. This overregulation is particularly damaging for SMEs and, it discourages start-ups from scaling up from Europe.
- Regulation is seen by more than 60% of EU companies as an obstacle to investment, with 55% of SMEs flagging regulatory obstacles and the administrative burden as their greatest challenge.
- Proposals to reduce the regulatory burden:
- The European business association welcomes the new focus of the EU authorities to reduce reporting requirements by at least 25% (and 35% for SMEs) and the commitment to the so-called “Omnibus” approach that should address several pieces of legislation to simplify and reduce complexity, duplication and red tape of new reporting requirements (for example simplify and integrate CSRD-CS3D-Taxonomy requirements).
- The association calls to set an overall regulatory burden reduction target with a dedicated program to achieve it within clear deadlines, and to that end it proposes 68 concrete measures in the most pressing areas, such as energy, circular economy, consumer protection, sustainable finance, taxation, financial sector...
- The European business association welcomes the new focus of the EU authorities to reduce reporting requirements by at least 25% (and 35% for SMEs) and the commitment to the so-called “Omnibus” approach that should address several pieces of legislation to simplify and reduce complexity, duplication and red tape of new reporting requirements (for example simplify and integrate CSRD-CS3D-Taxonomy requirements).
- Strengthen and complete the Capital Markets Union and Banking Union: According to BusinessEurope these actions should be a necessary step to advance in the single market integration, to ensure a sound economic growth, to improve access to finance for companies, develop risk-capital and attract more investment.
Filter results
According to @McKinsey, banks must prepare for a new growth curve. Strategic precision —the ability to combine technology, capital discipline, and deep customer insight— will distinguish the leaders from the laggards.
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.
According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.
According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.
According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.
McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.