Help Me Help You
The EU would benefit from negotiations with the US.
The EU Doesn’t Need Trump for a Trade War
Regulation is the bigger barrier to trade. The EU doesn’t even have real internal free trade.
Wouldn’t it be ironic if Trump ended up freeing up trade within the EU?
It’s unlikely, though, given the way they negotiate.
‘A consequence is that although Brussels publicly frets about potential trade barriers with the U.S., Europe’s internal trade barriers are far costlier. Behold “the myth of the single market,” as Spanish politician and professor Luis Garicano described it this month. The International Monetary Fund calculates that Europe’s complex economic regulations impose the same costs as would a 44% tariff on goods traded between EU countries. For services, the costs of complying with different national rules are equivalent to a 110% tariff. By comparison, the regulatory costs associated with trading manufactured goods across state lines within the U.S. amount to a 15% tariff.
‘Mr. Garicano cites numerous examples, and he still barely scratches the surface. Construction materials require national regulatory checks as they cross from one EU country to another. Professional licenses for nursing-home workers aren’t easily transferable if individuals move within the bloc. Denmark imposes idiosyncratic regulations on breakfast cereals that can be freely sold in most of the rest of the EU. France requires a unique recycling logo on packaging.’
Slimming CAP’s bureaucracy requires a digital transformation; the seeds have been sown
You can’t regulate your way into reliable food supply.
‘New measures aiming to simplify on-farm inspections and reporting obligations were announced by the European Commission on 14th May, potentially allowing farmers to save as much as €1.58 billion each year, while also benefiting national administrations with savings of around €210 million.
‘The measures are part of the Commission’s long-term “Vision for Agriculture and Food”, aiming to provide a clear, strategic framework for the future of European agriculture and its food systems. The framework addresses both immediate challenges, such as growing political tensions and extreme weather events, as well as the pressing day-to-day needs of farmers.
‘The roadmap outlines priority areas in the agricultural and food sector. Key goals include ensuring fair income for farmers by combating unfair practices and promoting transparency in the food supply chain, creating job opportunities for young people in rural areas, and streamlining EU rules for the Common Agricultural Policy.’
Financial regulation and growth: what should be the European policy priorities?
More deregulatory talk from Europe. Go figure.
‘There is no compelling evidence that tighter prudential regulations after the Great Financial Crisis have had a disproportionate impact on banks' lending capacity or the macroeconomy. However, there is scope to improve certain aspects of the current framework. In particular, authorities could consider simplifying some requirements and rebalancing the combination of across-the-board regulations and tailored supervisory actions in favour of the latter. There is also a clear public policy case to strengthen the regulation of non-bank providers of financial services by introducing adequate entity-specific requirements.
‘In Europe, it would be worthwhile to explore the extent to which the complexity of the institutional framework for banking regulation could impose excessive compliance costs on European banks. However, the main policy priority for fostering the efficiency and profitability of the industry remains promoting an integrated banking system. This requires removing political obstacles for cross-border consolidation and taking more decisive steps to complete the banking union.’