Piet Eeckhout, Professor of EU Law at UCL, explains how the argument for a UK exit of the EU on the basis that it would reduce ‘red tape’ for businesses is a false one. He notes that to benefit fully from the EU market, which is arguably one of the UK’s most important markets, the UK would still need to implement EU regulation but in the case of Brexit, would no longer be able to influence what that regulation is.
One of the recurring themes of the Brexit debate is that the EU is said to impose an excessive regulatory burden on UK companies and on the UK economy. Remarkably, a substantial number of business people also adopt such a position. As a mere academic I am of course not in a position to disprove assessments within companies that EU membership has led to more ‘red tape’. But I do feel that some basic facts are missing from the conversation. They concern the reasons for EU regulation, and the question whether Brexit equals escape from it. Continue reading