During the presentation of the España Crece Fund, Spanish Prime Minister Pedro Sánchez publicly opposed the deregulation agenda promoted by German Chancellor Friedrich Merz. Merz had recently called for a comprehensive reduction of regulations within the EU in order to enhance investment appeal, but Sánchez firmly rejected this notion, stating that it does not align with his vision for Europe. He underscored the importance of mindful regulation as a means to support sustainable growth rather than succumbing to pressures of deregulation.

Sánchez's comments reflect a broader ideological split within European leadership regarding regulatory frameworks, particularly in the context of economic recovery post-pandemic. While Merz believes deregulation will stimulate investment and economic activity, Sánchez argues that a balance of regulations is necessary to protect both the environment and social standards. By taking a stand against Merz's proposal, Sánchez is positioning himself as a proponent of a regulatory approach that considers long-term implications for EU member states.

This stance also highlights the potential for political friction as European leaders navigate recovery strategies and seek collaborative policies ahead of significant legislative discussions in the European Parliament. As Sánchez emphasizes the value of regulation in promoting growth, it raises questions about the future of regulatory policies in Europe, especially in light of differing national priorities and economic perspectives among EU members.