UBS chief executive Sergio Ermotti warned that Europe will keep lagging behind the United States and Asia unless a major crisis forces policymakers to act. He blamed “over‑regulation across the board” for stagnant growth and a widening productivity gap with rival economies, and says the continent’s bureaucracy stifles innovation and threatens the continent’s long‑term competitiveness.

Ermotti delivered the comments while UBS wrestles with Swiss regulators over post‑Credit Suisse reforms that could add $20 bn to the bank’s capital requirements. The government softened part of the package but kept core demands, prompting the CEO to label the measures “not proportionate, not targeted, and not internationally aligned.” He remains hopeful Parliament will trim the hit, and notes the changes could pressure the bank’s earnings outlook.

Despite speculation about relocating the headquarters, Ermotti insisted UBS will stay in Switzerland, calling any move “not even on the table.” He signaled willingness to extend his tenure beyond 2028 and warned of complacency in financial markets, citing private‑credit stresses that, while unsettling, do not match the 2008 crisis. UBS’s ability to navigate the reforms will test its resilience for shareholders and the broader Swiss economy.