European Central Bank (ECB) convened a new project group led by central bank governors of Germany, France, Italy, and Finland. The main aim was to simplify banking regulation amid current concerns about the economy's lack of efficiency, following the imposition of new tariffs from US president Donald Trump's administration.
The launching of a task force followed the controversial letter of the governors to the European Commission earlier this year. This letter directly referred to the need for a “comprehensive assessment” of European banking regulations to ensure a “level playing field” with other major jurisdictions.
The terms of reference and any timeframes for the project team remain unknown. The ECB has previously begun simplifying its operations, including the approval of bank capital models. At the same time, the European Banking Authority has been active in transposing regulations and has said it has made “significant progress” in simplifying standards. The EU has also moved the timeline for reviewing its banking system from 2028 to 2026.