CEOs want to rip off the European regulatory handbook Trump-style
After being sworn in as the 47th President of the United States on January 20, 2025, the President of the United States, Donald Trump, gave his opening speech in Washington, DC.
Chip Somodevilla | Afp | Getty Images
European CEOs looked on with envy as President Donald Trump repealed the slain laws on Monday, amid growing calls for similar measures across the continent.
Trump wasted no time in his first term, announcing a series of executive orders designed to boost key industries, including limiting electric vehicle production targets and accelerating oil and gas production.
The returning president has argued that regulation is stifling innovation and American competitiveness, campaigning for a second term promising to roll back red tape. And, as competition from a more assertive US and global competition increases, European business leaders are echoing that view.
Morton Wyrod, CEO of Swiss Robotics ABBHe warned that excessive regulation and associated high costs are pushing cross-border businesses to move to other markets, ultimately threatening the “industrialisation of Europe”.
At the World Economic Forum in Davos, Switzerland, Wirod told CNBC’s “Squawk Box Europe” that “there needs to be a clear reset on regulation and business can continue.”
Wirod added that while EU rules are often well-meaning, they have become too bureaucratic and need to be simplified to give companies the flexibility they need to innovate and grow.
“Every regulation is put in place with good intentions. But when you take it and put it all together, it becomes too much. It becomes too complex,” he said.
Bank of the Netherlands INGCEO Steven van Rijswijk agreed that the union needed to simplify and harmonize rules to boost investment and workforce productivity; This is a growing fault for the continent.
“There needs to be a lot of investment in infrastructure, a lot of investment in Europe’s strategic autonomy in terms of technological infrastructure, which needs to be encouraged,” he said.
Resistance to Europe’s ‘regulation-first’ approach
The EU has one of the most tightly regulated trading environments in the world, often priding itself on being a leading player in setting guidelines to govern industries and protect consumers.
However, CEO of Swedish Telecom, Borje Ekholm EricksonIn Europe, he said, the “regulation-first approach” is of no use, as it is hindering the development of technology.
“I don’t think you can be at the forefront of regulation, I don’t think that creates value,” he said. “You have to prioritize innovation, you need a framework that supports innovation. That’s what America is really successful at – Europe needs that.”
European policymakers seem to recognize the need for innovation and regulation in the face of growing economic competition and competition from the US and China, but so far, movement has been slow.
Mario Greco, chief executive of Zurich Insurance, said Europe must “revive” if it is to compete with other global markets, especially now under a new US administration.
“Europe is always lagging behind, always busy with its own business,” he said.
He added: “In a very fast-moving, very innovative world, it’s a wake-up call again, for Europe.”
Vas Narasimhan, CEO of Swiss pharmaceutical company Novartis, agreed that now was a big time for Europe, saying the group would face a fork in the road with two very different outcomes.
“Europe has to decide now – in a world where the US is very controlling and trying to increase competitiveness – Europe will continue to sit on its hands, continue to increase regulation in the Commission, increase regulation in various individual countries. Or are we finally going to have a more pro-competitive and pro-innovation environment in Europe,” he said.
“We’ll have to see. Despite all the talk, history suggests that not much action will come from the commission. And now is the time.”
Barclays chief executive CS Venkatakrishnan was one of the more optimistic figures about the UK and Europe’s efforts to boost sluggish economic growth.
“There are certainly a lot of (US) controls and regulations that have been put in place over the last few years, and we think that’s going to be relaxed. That’s generally good for business and good for business,” he said.
“And we think those winds are blowing into Europe and the UK, where you can see governments understanding what’s going on in the US and trying to see what aspects of their own controls need to be eased.”
“One can only hope,” he said.
