‘Yes, simplify’: IMF chief urges EU to streamline rules while preserving safeguards
Georgieva, who previously served as EU Commissioner and Vice President of the European Commission, said the focus in Europe is on simplification rather than dismantling safeguards.
- Feb 20, 2026,
- Updated Feb 20, 2026 3:02 PM IST
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Europe needs to simplify its regulatory framework but stopped short of calling for “deregulation,” arguing that the continent wants to preserve protections for workers and citizens even as it cuts red tape.
Speaking to Business Today, Georgieva acknowledged that Europe’s regulatory structure has become cumbersome and needs reform, but said the language and approach matter.
“In Europe, the understanding now is that there is red tape that needs to be taken out. But Europe thinks about it as efficient regulation, effective regulation,” she said.
“The term deregulation they avoid using because they don't want to send the signal that everything goes, that there is no – there are no protections for workers and for the well-being of citizens.”
Georgieva, who previously served as EU Commissioner and Vice President of the European Commission, said the focus in Europe is on simplification rather than dismantling safeguards.
“All of this – has to be done with optimal regulatory requirements, not with the regulatory capacity of Europe that it has today. So, yes, simplify.”
Single market gaps & structural reforms
She argued that Europe must fully implement its single market and remove structural barriers that limit business scale across the bloc.
“Europe must implement its single market to the fullest, something that Mario Draghi and Taletta have been advocating for,” she said.
“Europe needs a 28th regime for firms. So if you go to Europe and you register in Germany, what you do is applicable in all 27 countries. Europe needs capital market union. Europe needs free movement of skills across the union and a unified energy system.”
Her remarks came in response to a question on whether Europe, like some other economies, should deregulate to avoid stifling innovation, particularly in emerging technologies such as artificial intelligence.
Georgieva warned that excessive regulation can suffocate innovation but said the answer lies in striking a balance.
“We have seen far too many times suffocating innovation with excessive regulation,” she said, while adding that the goal should be to “identify what are the biggest risks and how we can put guardrails for those and do that very carefully.”
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Europe needs to simplify its regulatory framework but stopped short of calling for “deregulation,” arguing that the continent wants to preserve protections for workers and citizens even as it cuts red tape.
Speaking to Business Today, Georgieva acknowledged that Europe’s regulatory structure has become cumbersome and needs reform, but said the language and approach matter.
“In Europe, the understanding now is that there is red tape that needs to be taken out. But Europe thinks about it as efficient regulation, effective regulation,” she said.
“The term deregulation they avoid using because they don't want to send the signal that everything goes, that there is no – there are no protections for workers and for the well-being of citizens.”
Georgieva, who previously served as EU Commissioner and Vice President of the European Commission, said the focus in Europe is on simplification rather than dismantling safeguards.
“All of this – has to be done with optimal regulatory requirements, not with the regulatory capacity of Europe that it has today. So, yes, simplify.”
Single market gaps & structural reforms
She argued that Europe must fully implement its single market and remove structural barriers that limit business scale across the bloc.
“Europe must implement its single market to the fullest, something that Mario Draghi and Taletta have been advocating for,” she said.
“Europe needs a 28th regime for firms. So if you go to Europe and you register in Germany, what you do is applicable in all 27 countries. Europe needs capital market union. Europe needs free movement of skills across the union and a unified energy system.”
Her remarks came in response to a question on whether Europe, like some other economies, should deregulate to avoid stifling innovation, particularly in emerging technologies such as artificial intelligence.
Georgieva warned that excessive regulation can suffocate innovation but said the answer lies in striking a balance.
“We have seen far too many times suffocating innovation with excessive regulation,” she said, while adding that the goal should be to “identify what are the biggest risks and how we can put guardrails for those and do that very carefully.”