DUBLIN, Ireland: The need to reduce regulatory burdens in the European Union is finally being acknowledged, according to Ireland's Prime Minister Micheal Martin, who said the "penny has dropped" among EU leaders.

Speaking at an event at the US Chamber of Commerce during his visit to the United States, Martin said momentum is building toward simplifying regulations and fostering innovation.

"There is a move within the European Union now to simplify regulation. I think the penny has dropped. The message has got home," he said.

Martin highlighted the influence of French President Emmanuel Macron, citing a recent AI summit in Paris that underscored Europe's shift toward innovation.

"[US Vice President] JD Vance gave a very strong message. A hard message, but he gave it very clear that the US was going to go ‘innovation, innovation, innovation,'" Martin said.

He added that European Commission President Ursula von der Leyen and Macron are aligning with this approach, emphasizing the need for Europe to become more innovation-driven.

Martin said Ireland is committed to working with the D9+ group of nations—including Sweden, Denmark, Finland, and Belgium—to push for streamlined regulations across the EU.

"It has not been satisfactory. We in Ireland understand that, because a lot of the companies are located in Ireland," he said, adding that while there is growing recognition of the issue, it must be matched by "real concrete development."

Martin also addressed European defense policy, predicting a sharp rise in EU defense spending in the next financial framework.

"I can predict that the next multi-financial framework, which is the European Union budget, will involve a significant increase in European Union spending on defense capability," he said.

While Ireland maintains military neutrality, Martin emphasized that the country will have to "play its role" in European security, contributing to defense spending through collective EU debt instruments.

Cybersecurity, subsea cables, and maritime security are among Ireland's immediate priorities, he said.

The US Chamber of Commerce reaffirmed its commitment to strengthening economic ties with Ireland, with President Suzanne Clark calling it an "indivisible connection."

Martin described the Ireland-US relationship as an "enduring partnership," stressing that free trade has lifted global prosperity.

Addressing Irish investment in the US, Martin acknowledged that visa restrictions remain a challenge. He said he has long advocated for a legal framework that would allow greater mobility between the two countries.

"Flexibility around inward movement of people into the United States is problematic," he said, adding that easing restrictions would benefit both Irish and American companies.

He noted that President Donald Trump has been "very well disposed" toward such an initiative, hinting at potential progress on visa mobility between the two nations.