INSURANCE MATTERS

FEWER REGULATORY LAYERS

Trimming the mille-feuille

A recipe for better regulation

In today’s European Union, regulation is essential to uphold our values, protect consumers and ensure fair competition. Yet across industries and among citizens, concerns are growing: our regulatory environment has become increasingly complex, fragmented, and at times, contradictory.

This “mille-feuille” of layered rules, built up over the years, is now closing more doors than it opens. What was meant to provide structure and opportunity is becoming difficult to digest. Even well-intentioned legislation can fall flat under the weight of complexity. Overly intricate rules reduce transparency, increase compliance costs and delay implementation.

In short, complexity undermines effectiveness. That’s why, at the heart of this political mandate lies a clear priority: simplification. The aim is not deregulation, but smarter and more targeted regulation.

So how do we make the mille-feuille lighter and more digestible? The answer lies in developing simpler, more coherent rules. And like any good recipe, success lies in the following steps.

1. Simplification, not deregulation

Simplification is not about cutting corners; it's about cutting complexity. The goal is not fewer rules, but better and lighter ones – regulations that are practical, enforceable and understandable. As opposed to deregulation, simplification will strengthen our rulebook. This not only benefits businesses, but also citizens.

If we want to unlock Europe’s competitiveness, we must make regulations easier to implement and easier to follow.

“Simplification is not about cutting corners, it's about cutting complexity.”

2. Working on rules that will change the life of citizens and companies for the better

Rules aren’t just lines on paper – they are tools to make life easier for citizens and businesses. If we want our rules to be a success, we need everyone on board.

Europe is facing a serious investment shortage – an estimated annual investment gap of more than 800 billion euros for areas like the digital and green transitions and defence. National budgets are under intense pressure, and Member States are struggling to meet the financial demands of these strategic priorities.

Public funding alone will not be enough. Attracting private capital into the real economy won’t happen overnight – it takes solid foundations to make investment more attractive and shift the current savings patterns of European citizens. That is precisely the goal of the Savings and Investments Union (SIU). However, the Commission’s SIU roadmap, as laid out in its March 2025 Communication, will only succeed if the rulebook is simple, consistent and easy to implement. That is where simplification comes in. Because it is not just a technical adjustment – it is a powerful enabler of opportunity. A simplified regulatory environment creates space for businesses to grow, innovate and compete globally, while also empowering citizens to better shape their financial futures.

3. Simplification is about looking at where we are and where we are headed

Simplification is about ensuring that every law, whether old or new, delivers real impact. It’s a mindset focused on the past, the present and the future. By assessing where we stand and where we are headed, we can shape what comes next and improve what already exists. This ensures our continent’s rulebook evolves with our ambitions and stays fit for purpose.

Take the Retail Investment Strategy, for example. The European Parliament and Council had their position ready – but now it’s time to adjust it to cross the finish line. And this should be done through the lens of simplification, so that the final text truly empowers Europeans and unlocks investment. Simplification isn’t a one-time exercise. It’s a method – and more importantly – a commitment we need to apply today and tomorrow, across all legislation.

Better regulation means better results. If we manage to deliver on simplification, we don’t just simplify – we strengthen Europe’s ability to lead.