Now if ever is the time for increased regulation of businesses. Because the motivating factor for businesses is their own profit, they are unable to look at the bigger financial picture. If something is profitable for a business but bad for the economy as a whole, for example cutting employees’ wages to increase profit margins, a business would have no reason not to do it. A body such as the EU however can take an unbiased view of the economy and weigh up the need for profitability against factors like the need for workers to have disposable income. This will lead to a more stable economy in the long term because the interests of all the involved parties have been considered.

Prior to the recession businesses seemed to be doing fairly well, so the government was willing to leave them alone. This success was predicated upon a healthy economy, and when this foundation was removed their unsound business models were revealed. If business regulation is halted it is possible that this will give businesses a short term boost. But because they will be desperately seeking short-term profitability this gives them a powerful incentive to use risky business models for a quick gain. But these models will not stand up to long-term scrutiny, so the cycle will begin again. EU regulation will create a system where high risk strategies are not profitable so will lead to business models which are more likely to be long-term sustainable.