Following last month’s Brexit decision, Economists are issuing dire predictions for the fate of the EU.
As experts note, the actions of EU can be seen as an attempt not to increase competition but to “harmonize policies across member states,” reports a new publication by the American Enterprise Institute. The EU government, in lieu of promoting competition, has “flexed its regulatory muscles almost without bound,” burdening states with high regulatory costs that provide little foreseeable benefits.
These regulations include: the energy sector, labor markets, and even household minutia. Recent regulatory laws, for example, addressed the “power of vacuum cleaners, setting off a run on the devices.”
Add all of these regulations together, experts say, and “you get a Brexit.”
Factoring in the long and intricate history of EU member states, economists predict it is likely that if the EU government continues to thwart competition by broadly legislating regulations it will “grow increasingly unpopular, and more countries will leave.”
Economists offer some insight into how the EU could keep unity without forced coercion. Instead of focusing it’s efforts of heavy regulation and harmonizing policies that benefit some member-states but not others, the EU government should rather focus on “maximizing mobility and enhancing the competition between states, allowing the countries to compete on regulation, taxation, and in other policy areas.” If it can accomplish this, experts say, the EU government will become “a populist’s dream and the best economic friend of its citizens.”
For now, economists say that Great Britain has a comparative advantage. The nation can compete with EU polices by identifying those that are “most unfriendly to economic activity,” and offer “investors and workers with the promise of superior ones.”
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