EU planning biggest relaxation of merger rules in decades, aiming to foster European champions able to rival US/China. Draft guidelines would shift focus to innovation, investment, internal market resilience when assessing deals. Commission says this departs from consumer‑price emphasis of 2000s policy. Dealmakers view change as welcome.

The proposal reflects a broader political swing, championed by Commission President Ursula von der Leyen, who argues that scaling firms can be pro‑competitive. Some liberal states and senior officials warn that loosening scrutiny could curb innovation and raise prices. Nevertheless, the draft keeps competition preservation as a core goal, while allowing scale and resilience as legitimate benefits.

Critics fear the new approach could tilt the playing field toward large incumbents, but supporters say it will secure access to critical inputs and strengthen supply‑chain resilience. By foregrounding scale and innovation, Brussels hopes to make Europe more attractive for cross‑border M&A and to nurture firms that can compete globally. The guidelines remain draft and await formal adoption.

Investment banks and private‑equity groups have already signaled interest in pursuing larger bloc‑wide deals, citing the draft as a green light for consolidations that were previously blocked on antitrust grounds. If the EU finalises the rules, analysts expect a modest uptick in announced transactions this year, though the exact impact will depend on how strictly the new criteria are applied.