The newly appointed von der Leyen Commission has been called upon to reassess existing regulations concerning climate change, investment, and data management to enhance Europe’s competitive edge, according to AXA’s Frédéric de Courtois in an interview with Euronews. As the European Commission embarks on its new term, a plethora of financial industry lobbyists have already articulated their desire for the revision or elimination of certain laws that they believe are stifling economic growth. The incoming leadership under Ursula von der Leyen has committed to prioritizing competitiveness, particularly as economic indicators reveal that the EU lags notably behind the United States. De Courtois, who serves as both Deputy CEO of AXA and President of Insurance Europe, pointed to several EU regulations—most notably the recently established AI legislation—as examples of legal frameworks that could hinder rather than help innovation within the bloc.
The regulation on artificial intelligence, which mandates stringent oversight for high-risk machine learning systems, has drawn criticism for its complexity and the potential penalties for non-compliance, which could reach 7% of annual revenue. While Thierry Breton, a former EU commissioner, praised this framework as a monumental step towards establishing Europe as a leader in trustworthy AI, industry voices like de Courtois express frustration and confusion over its practical implementation. He articulated the sentiment that while artificial intelligence is vital for enhancing various sectors of the economy, particularly insurance, the regulations may be unnecessarily restrictive and heavy-handed. De Courtois suggested that instead of an exhaustive and prescriptive law stretching over 144 pages, a framework focused on simple guiding principles could effectively address key concerns like bias and privacy.
In the context of her recent confirmation, von der Leyen has assured Members of the European Parliament (MEPs) that she aims to eliminate excessive regulatory burdens that stymie business operations. One of her first considerations might be the financial regulations obligating companies to disclose the environmental ramifications of their supply chains, which stakeholders have complained create convoluted and often conflicting compliance requirements. Particularly in light of the increasing frequency and severity of extreme weather events—including floods and fires—there is a clarion call for urgency in climate action. De Courtois pointed out that the insurance sector frequently bears the financial consequences of these catastrophes, indicating a pressing need for coherent and conducive regulatory environments that facilitate action rather than serve as roadblocks.
Further complicating the landscape is the broader climate change challenge, which de Courtois refers to as the “biggest threat we face.” The fallout from climate-related events often puts a strain on the insurance and financial industries, which must navigate the complexity of existing regulatory frameworks while also preparing for future risks. The push for laws that mandate transparency and accountability in environmental impacts reflects genuine concern, but industry leaders argue for a balanced approach that favors pragmatic and flexible solutions. This dual imperativ—to take decisive action against climate change while fostering an environment that encourages innovation—points to the need for adaptive legislation that promotes sustainability without stifling economic growth.
De Courtois advocates that regulations should step back from preemptively diagnosing problems that are still emerging in industries like artificial intelligence. By deferring to principles rather than exhaustive prescriptions, innovators could better navigate the space while still adhering to ethical norms and practices. He contends that the current European strategy often leans toward being overly cautious, potentially undermining the innovation that could arise in the tech and insurance sectors. In this context, there is an ongoing debate about the balance between necessary oversight and the freedom to innovate—something that will likely feature prominently in the von der Leyen Commission’s legislative agenda.
As Europe stands at a crossroads, with significant global competition in areas like AI and climate change, the next steps taken by the von der Leyen Commission may prove decisive for the continent’s economic prospects. Financial leaders are urging swift action and meaningful reform to existing regulatory frameworks. By charting a pragmatic course that emphasizes innovation alongside accountability, the Commission has the opportunity to position Europe not just as a regulatory leader but as a competitive powerhouse on the global stage. Ensuring that the regulatory environment nurtures rather than hinders progress will be crucial as the EU endeavors to define its role in an increasingly complex and challenging global economy.
