Germany’s Merz Says European Banking Rules Are ‘Too Rigorous’

German Chancellor Friedrich Merz joined European politicians in saying the bloc’s banking regulations are too strict as the US gives lenders an easier ride to free up financing for the economy.

“Banking regulation is also important,” Merz told an audience of bankers in Frankfurt on Monday. “In Germany and Europe — and I want to say this very clearly — it’s too rigorous.”

Germany’s chancellor Friedrich Merz at the Sueddeutsche Zeitung Economic Summit in Berlin on Nov. 17.

Photographer: Krisztian Bocsi/Bloomberg

European politicians are pushing for regulators to loosen the reins on the region’s banks as their economies contend with massive needs to invest in defense, digital technology and the prevention of climate change. Bankers have also ...