He said that businesses need greater speed, efficiency and sensitivity from the regulators and that if Europe is too slow to react, "its entrepreneurial and innovative potential will be hampered and the challenges of the internet age will not be met."
He said Europe's regulators must be able "to produce, modify and if necessary drop regulation fast, in accordance with the rapidly changing climate in which companies have to compete."
Mr Liikanenen said that the Commission hopes to come up with a simplified means of regulation by next year. It has begun examining alternatives to "pure" legislation, notably the use of self-regulation by industry, and co-regulation, through a partnership between private companies and public bodies, involving a mix of voluntary and obligatory measures.
He added that, "traditional regulation or 'pure' regulation is increasingly called into question by the demands of globalisation."