In Davos European executives support Trump's call to action on deregulation

Davos business leaders joined President Donald Trump in calling on the European Union (EU) to increase its efforts to reduce regulations and boost competition so that the EU does not fall further behind other developed countries. Trump said via videoconference to the business elite in Davos at the World Economic Forum annual meeting, that the European Union was unfair and made it hard for the U.S. to import products into Europe.

He said that companies would face tariffs if they did not produce their products in the U.S., and that the U.S. was the best country to build factories and generate jobs under his administration.

Executives at Davos noted that Trump's promise to roll back corporate regulations in the U.S. has added urgency to long-running EU discussions on how to improve competitiveness.

Nicolai Tanen, CEO Norges Bank Investment Management - one of the largest investors in the world - said: "They are rolling back regulations fast in the U.S., so it is more important to (do) the same in Europe."

Trump's campaign promise to reduce corporate regulation has been implemented in his first few days as president.

While other executives said the EU's rhetoric on deregulation was encouraging, they wanted quick action.

Erik Ekudden is the chief technology officer of Ericsson. He told Global Markets Forum that there was a willingness to move quickly and a capability to do so.

Belen Garijo is the CEO of Merck Group in Germany. He said, "We must move quickly... Europe does not lack ideas; it's a matter of implementation." Garijo added, however, that U.S. policies should not force a catalyst to increase competition.

Slow Progress

Former European Central Bank Chief Mario Draghi, and EU Commission Head Ursula von der Leyen highlighted the need to reduce red tape and increase innovation for the EU to remain competitive.

However, progress is slow. EU member states are unable to reach an agreement on a range of issues, from energy to capital market reform.

Thomas Saueressig is a member of the executive board at German software company SAP. He said that with the rapid growth in artificial intelligence technology (AI), it was even more important to ensure that growth wasn't slowed down by regulations.

The key question is: How will AI regulations be implemented on a global scale? "The context for Europe is very clear. To stay competitive, there must be a shift," Saueressig stated.

Garijo, from Merck, stated that if Europe does not catch up with technologies like AI it could result in a loss of billions to the gross domestic product.

"People are tired listening to the same story. What happens in 100 days? In two years? Joe Kaeser is the chairman of Siemens Energy.

Join GMF, a chat room hosted on LSEG Messenger for live interviews: https://lseg.group/4ajdDTy) (Reporting by Divya Chowdhury in Davos and Lisa Mattackal in Bengaluru; additional reporting by Bansari Mayur Kamdar and Mehnaz Yasmin; Editing by Alex Richardson) (Join GMF, a chat room hosted on LSEG Messenger, for live interviews: https://lseg.group/4ajdDTy) (Reporting by Divya Chowdhury in Davos and Lisa Mattackal in Bengaluru; additional reporting by Bansari Mayur Kamdar and Mehnaz Yasmin; Editing by Alex Richardson)

(source: Reuters)