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Law, Tax, Compliance

Red tape and competitiveness: ABBL calls for smarter regulation in Europe

Published on 02 September 2025

Europe’s competitiveness challenge has once again taken centre stage, following the publication of Mario Draghi’s report and recent coverage in the Luxembourg Times. The report underscores how excessive regulation, coupled with insufficient support for innovation, risks holding Europe back compared to the US and China.

Summary

    A familiar concern for the banking sector

    For the banking industry, and for the ABBL in particular, the burden of red tape is not a new issue.

    “The report in large parts confirms what we have been saying for years,” said Jerry Grbic, CEO of the ABBL. “It was a running joke that the US is creating something, the Chinese are copying it and Europe is regulating it – and basically, that’s the problem.”

    In recent years, banks have welcomed regulation as a source of stability and resilience – for example, preventing contagion during the Credit Suisse collapse. But the pace and complexity of EU rules has become increasingly difficult to manage. Compliance costs are rising sharply, forcing some players to scale back or exit certain activities.

    The report in large parts confirms what we have been saying for years. It was a running joke that the US is creating something, the Chinese are copying it and Europe is regulating it – and basically, that’s the problem.

    Jerry Grbic

    CEO, ABBL

    Finding the right balance

    The ABBL has long advocated for regulation that is not only robust, but also proportionate, consistent and innovation-friendly. This is essential to keep Europe competitive on the global stage. The association supports initiatives such as the EU’s Omnibus regulation to streamline corporate sustainability rules, while continuing to call for policies that help banks innovate and finance Europe’s strategic priorities.

    Luxembourg, with its strong financial ecosystem, track record in blended finance and culture of dialogue, can play a leading role in this effort.

    The ABBL’s role

    At the ABBL, we represent the banking sector’s interests in Luxembourg, Europe and beyond. We advocate for a regulatory framework that enables banks to continue creating value for the economy while innovating responsibly and maintaining the highest standards of stability and trust.

    Read the full article in the Luxembourg Times: Red tape key obstacle to EU’s competitiveness challenge