Lloyd’s Chairman has fired a shot across the bows of Europe’s financial watchdogs, warning that regulation in the wake of the global financial crisis should not get in the way of growth.

In his speech to leading London business and government figures at the Lloyd’s annual dinner, Lord Levene further warned of increased competition from the world’s second largest economy.

Lord Levene says there is “currently a failure of common sense” affecting healthy sectors like insurance that are “still fighting a rearguard action, trying to convince regulators not to impose harsh conditions”.

“I believe what Europe needs at this critical point, is not so much a safety net, but more a launch pad for the growth that will create the enterprise, and crucially the jobs which the Continent so badly needs.”

While Lord Levene accepts the need for “rules and regulations [to] police effectively the international economy”, he says governments should not focus on past failures.

“Much of the time that we are spending on crafting regulation and building structures to prevent a re-run of the financial crisis could be better spent on growth strategies.”