European Regulation on Business does more Harm than Good
EU regulations cover many aspects of how businesses operate. From prohibitions on discrimination in the workplace to quality standards for the products that businesses produce, there are few areas of business life not affected by the EU. Does this regulation improve life for employees and customers alike? Or does it prevent the market from reaching its potential?
Regulation Hampers Business
Businesses are swamped by red tape and regulation. This takes up time and money which in turn limits how effectively these businesses can operate. If businesses are expending effort on dealing with EU regulation they cannot put as much effort into developing new products, looking after customers or any of those things that makes a business thrive.
Business Freedom is Good for the Economy
Thriving, innovative businesses are essential to a country’s economic development because as they grow they employ more people, pay more tax and plough more capital back into the economy. This is beneficial not just for the business but for its employees, the people in the local area and the government. When we introduce regulations they limit a business’s freedom and thus have the potential to cut their potential for growth.
Regulation Limits Irresponsible Businesses
The nature of business dictates that it will always be striving for profit. This is not inherently bad, but can have detrimental effects when done at the expense of employee rights or environmental considerations. Businesses will never voluntarily do something which could limit their profitability, so the EU is required to step in. Elected bodies such as the EU have a duty to protect their citizens, and regulating business is a way they can do this.
Uniform Regulation Helps Competition
Regulation costs businesses money, which is passed onto customers in the form of higher prices. Butt this would be true in some countries even without the EU, because individual governments would enact regulations. But without the EU regulation would be more costly in some countries than others. This would mean that highly regulated countries would not be able to attract new companies and their existing ones would be priced out of the market. Lower regulated countries may be able to produce goods cheaper and thus be more competitive but their environments and workers would not be protected. Standardised EU regulation creates a Europe-wide level playing field so neither business nor employees are disadvantaged.
What do you think?