The EU should introduce no new regulation for the duration of the recession.
Businesses are the foundation of the EU economy. They keep money moving, they employ people, and keeping them operating is essential to economic recovery. Would new EU regulation limit this? Or is the EU’s role in issues like employee protection and safety more important?
Regulation limits businesses
EU regulation places limits on what businesses can and cannot do. Although this may help the EU to achieve long term aims on things like climate change, they are harmful to the day to day operation of businesses. In a recession the economy needs functioning businesses to keep capital flowing and to keep people employed. We need to do all we can to help them do this, not saddling them with more regulation to limit their profitability.
A national government’s first obligation is to its people. If domestic businesses can be helped, and thus save jobs and benefit the national economy, then the government has an obligation to do this. We should not be prevented from looking after the best interests of our people by the EU’s policy on issues which are not as pressing as economic recovery.
Long term recovery
EU regulation provides the framework for how all European business operates. Therefore it can set the terms for how thee businesses should be working for long term recovery. Businesses, particularly when they are scarred by a recession, will have short term aims such as survival or a quick boost in profitability. But chasing these aims at the expense of sustainable business models just creates the possibility that the same thing could happen again. This is where the EU can step in, and legislate so that businesses are obliged to operate in a way which will not harm the economy in the long term.
More than money
A business’s primary motivation is profitability. This is fine, until their methods to become profitable begin to impinge on other people’s rights. When businesses are harming their employees or the environment, an elected body has the obligation to step in and prevent this harm from occurring. This is what EU regulations are there to do. A potential short term boost in profitability is not enough of a benefit for the EU to not fulfil it’s obligations to its people and environment.
What do you think?