The EU needs deregulation. That does not mean compromising on any core principles. It means smarter, streamlined policies which promote efficiency without undermining fairness. It’s time to rethink outdated frameworks and prioritise an open, competitive market which rewards innovation, drives investment and entrepreneurship, and benefits from embracing economic growth.
For too long, the EU has stood at a crossroads while its principles of stability, cooperation, and fairness fuel an outdated regulatory framework which is holding back innovation. The EU must seek competitiveness and a new approach by embracing efficiency, economic growth, and forward-looking policies without harming or letting down stakeholders. Deregulation does not mean dismantling the EU’s core values. It means refining them and ensuring economic growth for everyone.
The EU has accumulated layers of bureaucratic processes which have burdened business, stifled competition, and slowed decision-making. From strict labour laws to convoluted tax structures, these outdated approaches have made it harder for companies to invest, innovate, and expand. What were the results of following this obsolete approach? A business climate which is far behind competitors like the United States and China. While others get richer, Europeans are getting relatively poorer thanks to our lack of growth.
The EU needs a more dynamic and competitive approach. Deregulation doesn’t mean abandoning workers, consumers, or the environment. Instead, it calls for a more pragmatic reassessment of Europe’s political direction of travel and encourages regulation which supports entrepreneurship rather than suppressing it.
"Has the EU’s “better regulation” agenda been resurrected?" – New article by @pietercleppe:https://t.co/IRkn9ooTYN #EU #EuropeanGreenDeal #SOTEU @vonderleyen #regulation
— BrusselsReport.EU (@brussels_report) September 18, 2023
Deregulation
Deregulation can start with small steps such as simplifying paperwork for startups, modernising trade agreements, reducing excessive compliance costs for small businesses, and stoking a job-creating economy by prioritising growth ahead of extreme precaution in regulation. This way, the framework simplifies doing business and goes for economic growth. Only by hacking through the labyrinth of restrictive regulation will Europe begin to catch up with the economic growth it has missed over the past decade.
A well-balanced regulatory framework would make the EU attractive again for investment and a magnet for cutting-edge industries like green energy, artificial intelligence, and biotechnology. If Europe aspires to lead tomorrow, it must shed the burdens of the traditional way of economic growth today, focussing on innovation rather than dwelling on the old maze of compliance requirements.
The challenge within the EU is not to choose between deregulation and regulation. Rather, it is about finding the right regulation which puts the EU’s economy back on the map. The EU should avoid the trap of over-legislation and focus on policies which promote a flourishing modern economy. A competitive market fuels growth. Currently, Europe’s market is not competitive. Only growth secures Europe’s future.
Climate campaigners, unions, and others promote fear of deregulation, but their claims are unfounded. There are plenty of ways Europe can regulate without drowning businesses in red tape and making the continent seem like a hostile place to do business. On environmental issues, for example, there are countless ideas available for the EU to copy, such as the Climate and Freedom Accord, outlining how responsible regulators can achieve both greenness and growth. Being green does not require aggressive regulation, which only drives away the innovation which can save the planet.
Useful overview of recent EU regulations businesses need to cope with: the EU's "ESG compliance jungle" as compiled by @WKOe in Oct 2024:#deregulation #doge4EU pic.twitter.com/LjehDBvh1h
— Pieter Cleppe (@pietercleppe) February 20, 2025
Balance
Europe badly needs a more balanced regulatory policy which encourages private investments and revives the European economy. Removing unnecessary regulation-borne risks and reducing the costs of running, establishing, and closing a business will bring floods of new investment. A critical review of regulations which govern industries that have the largest influence on these sectors should be considered, too. Deregulation can help build trust which will contribute to increased investment across the economy.
By simplifying bureaucratic processes, creating a business-friendly environment, and modernising policies, Europe will attract investment and remain a global leader in key industries. Striking a balance between regulation and flexibility is crucial because the future of Europe depends on change, adaptation, and prioritising innovation. The choice for Europe is easy: to follow modernisation or risk falling behind.
The world is changing and Europe must change with it. The EU can remain in the middle of the process of change but the time has come to embrace smarter policies which unlock its potential and drive economic growth by its uniqueness. The EU must choose innovation.
Arta Haxhixhemajli is a Kosovar researcher, a non-resident Fellow at the German Marshall Fund of the United States and a fellow with Young Voices Europe. Her research covers international relations, security, and geopolitics.
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