The European Banking Federation has sent a letter to European Council President António Costa calling for decisive action to accelerate financial sector simplification, arguing that Europe needs a more effective, efficient and coherent regulatory and supervisory framework to enable banks to deploy capital efficiently and better support long-term growth, competitiveness and strategic autonomy. Ahead of the 12 February informal EU leaders’ retreat on competitiveness and the Single Market, the letter positions Europe’s bank-financed economy as central to funding strategic priorities including innovation, sustainability and security, and echoes concerns raised by Mario Draghi about Europe’s competitiveness and investment needs. It also reiterates the importance of preserving financial stability and resilience while pursuing simplification.