German Chancellor Friedrich Merz advocates for the deregulation of the European banking sector, arguing that current regulations are affecting the German economy.

The German Chancellor Friedrich Merz expresses support for deregulating the European banking sector, in an attempt to revitalize Germany's economy, which is facing a loss of market share against external financial institutions. Merz, former president of the German branch of BlackRock, emphasized in his speeches that strict regulations, while having strengthened financial stability, have had negative effects on the German economy. He believes that European banks are subject to excessive regulation, which affects their competitiveness compared to rivals in the U.S.

However, the idea of deregulation has raised concerns among European central banks, which warn that relaxing the rules could compromise financial stability. ECB President Christine Lagarde and Isabel Schnabel, a member of the ECB board, emphasize the importance of maintaining high standards to prevent instability and future financial crises.