Cost of regulations on business totals €1 trillion

The cumulative cost of red tape on Europe’s businesses over the last 11 years amounts to a staggering €1 trillion. Similarly, estimates of the annual cost of all EU regulations are in excess of 12 per cent of EU GDP. These are the findings of research published by Eurochambres, the representative body for Chambers of Commerce across Europe.

The report’s authors, Francis Chittenden, Professor at Manchester Business School and Tim Ambler, Senior Fellow at the London Business School, argue that even though the EU holds the keys to creating a true single market, high levels of poorly designed and burdensome regulation ensure that EU competitiveness is hampered without any certainty that the intended regulatory benefits are achieved.

David Frost, Director General of the British Chambers of Commerce, said: “Businesses are facing the toughest economic environment for a generation. Company cash flow is being squeezed and unemployment is growing as a result.

“The EU needs to get serious about reducing the massive burden of regulation on business. Cutting unnecessary burdens and announcing a moratorium on new employment law would be an effective way of providing instant and inexpensive help to British firms.”