To compete, Europe needs scale – not just simplification

Regulatory simplicity has become a significant part of the EU’s competitiveness agenda. But while it’s important, it’s not enough to make Europe competitive on its own. A much bigger obstacle is the fragmentation of its markets as well as the lack of scale and suitable governance structure hindering cross-border business. Europe needs regulatory simplicity, but even more so it requires an integrated market that allows firms to compete on a global level.

Apostolos Thomadakis is Head of Research at ECMI, and Senior Research Fellow and Head of the Financial Markets and Institutions Unit at CEPS. The commentary was informed by discussions at a CEPS-ECMI-ECRI seminar, More finance, less friction: simplifying EU financial regulation and strengthening supervision, held on 16 June 2026.