Saturday, January 21, 2006

Uh oh! The EU is discovering some basics of economics - if you pass a lot of regulations and make it difficult for companies to operate, they will leave and go elsewhere.
Europe's most successful companies are turning their backs on EU markets because of red tape, a high-level report said yesterday.

The companies that Europe needed to survive were instead investing more money than ever in the United States and Asia, concluded the report, presented to the European Commission in Brussels.

The lack of investment was so dire that it threatened Europe's "comfortable" way of life. "Europe has to act before it's too late," said the report's author, Esko Aho, the former prime minister of Finland.

The findings made unsettling reading for the EU leaders, ripping into their pledges to build a "knowledge-based Europe" that would overtake America in 10 years.

The reality was the opposite. Not only were US, Chinese and Japanese firms outspending Europe on research and development, the gap with Europe was growing.
Well, what did they expect when they burden every company with innumerable restrictions on whom they can hire and fire and everything else. Even good European companies will wake up and smell the latte and realize that they can make more money if they move elsewhere. So, with the growing enployment problems that some of Europe is facing, they're increasing their problems by driving away big employers.