German Chancellor Friedrich Merz has called for urgent regulatory reforms within the European Union, warning that bureaucratic delays are stifling economic growth and diminishing Europe's appeal to global investors. Speaking this week, Merz emphasized that China's streamlined policymaking processes have positioned it as a formidable competitor in attracting foreign capital and driving innovation.
"Europe is far too slow compared to China," Merz stated, urging EU member states to adopt simplified approval frameworks for infrastructure and technology projects. Analysts note that this push aligns with broader debates about the bloc's competitiveness amid rising Asian economic influence. In 2026, China's GDP growth rate continues to outpace most EU nations, with its digital economy expanding rapidly.
Business leaders have echoed Merz's concerns, citing prolonged permitting timelines for renewable energy initiatives and semiconductor plants as critical hurdles. The European Commission is expected to review regulatory protocols later this year, though consensus among member states remains uncertain.
