"We Are Bound to Lose in the 'Race to the Bottom'"
The European Union (EU) is currently facing pressure to ease regulations from both inside and outside, including U.S. President Donald Trump and European industry leaders. However, the EU must uphold a stronger regulatory framework to maintain its global competitiveness, according to the EU Commission’s second-in-command.
In an interview with the Financial Times (FT) released on December 26, Teresa Ribera, Vice President of the European Commission, stated that the EU is bound to lose in the so-called “race to the bottom” of endless deregulation, emphasizing the need to resist such trends.
Ribera’s remarks come as the EU’s center-right leadership is pursuing regulatory rollbacks in response to demands from the United States and European industry.
As the European Commissioner for Competition, she said, “It is no coincidence that green transition policies and the digital agenda are under threat. These are the core drivers of Europe’s competitiveness,” adding, “If the EU is to maintain its competitiveness in the global economy, it must firmly uphold its digital regulatory framework and environmental standards, and further deepen the single market.”
She acknowledged the need to listen to the Trump administration’s concerns about EU regulations, but stressed that the EU must never give in to demands to scrap laws related to sustainable supply chains, deforestation prevention, and social networking service (SNS) regulation. “If we lose our identity, values, and the trust of our citizens, we will no longer be able to negotiate or build bridges,” she warned.
She urged Europe to act more effectively next year to safeguard the core values of competitiveness, security, and values that have defined this term.
Unlike European Commission President Ursula von der Leyen, who has sought to ease some regulations that Ribera herself once led, Ribera has consistently taken a firm stance in defending the EU’s digital and environmental regulations.
She explained, “There have been times when we had to stand up directly to the United States and say, ‘Sorry, but we will not nullify our regulations just because you do not like them.’”
Under Ribera’s leadership, the EU’s competition department has strengthened the enforcement of digital regulations, launching investigations into the dominance of Amazon and Microsoft in the cloud market despite U.S. pressure. The department has also begun inquiries into Google’s artificial intelligence (AI) models and Meta’s WhatsApp, and imposed a 120 million euro fine on Elon Musk’s X (formerly Twitter) for violating digital transparency regulations.
In response, on December 24, the Trump administration banned entry to former EU Internal Market Commissioner Thierry Breton and others who led the EU’s big tech regulatory legislation.
Ribera emphasized that, despite external pressure, the EU must maintain its position as a global standard-setter, saying, “As Europeans, we cannot bet on a race to the bottom.”
She added, “We know that we create these high standards through regulation,” and continued, “No European company fails to understand or denies that they can enhance their competitiveness through these high standards.”
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