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Business Leaders Cite EU Rules as Constraint on Investment
ArcelorMittal’s executive chairman and the governor of Saudi Arabia’s Public Investment Fund said emissions trading rules and regulatory screening are limiting capital flows into the European Union.
Jun 18, 7:15 PM·1m read1 source
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ArcelorMittal’s executive chairman wrote in the Financial Times that emissions trading rules increase costs for energy-intensive industries. The governor of Saudi Arabia’s Public Investment Fund stated that the regulatory environment discourages additional foreign investment into the bloc.
Foreign direct investment into the EU declined 7 percent in 2025, according to EY analysis. A growing share of companies identified overregulation as a business risk.
March, EU authorities tightened screening procedures for foreign direct investment. The moves add to existing legislative requirements rather than reduce them. A 2024 report by former ECB President Mario Draghi recommended cutting legislative restrictions on business activity across Europe.
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