Senior executives across the European investment banking and asset management industry have warned that the barrage of poorly thought-through regulatory reform is causing uncertainty that is stifling the nascent economic recovery in Europe.

Bankers and fund managers have told Financial News that the high volume and slow pace of regulatory reform, coupled with the uncertainty of outcome over the past two years is reducing levels of investment and lending at a time when European companies need them most, as crises continue to engulf eurozone countries. They are urging policymakers to work together with greater speed to avoid the possibility of the second leg of a double-dip recession.