EU Competition Report: heading in the right direction

EU Commission sets a clear signal with its Competitiveness Compass: Europe must become more competitive. Less bureaucracy and a robust capital market are the right levers to promote growth and innovation. “Europe has strong and innovative businesses. But in order for them to realise their full potential, we must lower existing barriers and strengthen the Single Market,” explained Heiner Herkenhoff, CEO of the Association of German Banks.

The capital market will play a key role in doing so. The Commission is committed to getting more retail investors investing in the stock markets, to expanding funded pension provision and to revitalising the securitisation market. These steps are crucial for encouraging investment. 

“Banks supply the fuel for growth and innovation in Europe. But, here too, development is held back by excessive bureaucracy. That needs to change. Only with more streamlined regulation and a strong capital market can Europe compete globally,” said Herkenhoff.