"Krone" commentary

Saving the climate or the economy?

Taking stock for the "Krone": Chief Economist Georg Wailand(Bild: Krone KREATIV)

The EU could be a formidable institution for peace, nature and prosperity. It could, but unfortunately it is not.

Much worse: just a year ago, EU leaders were singing the praises of how Europe would save the world and the climate. One regulation followed the next, companies in Europe were suffocating under new regulations that were alien to the economy - while production in Asia, for example, continued unabated, the EU fell victim to control mania. The most comprehensive "sustainability reports" were prescribed and companies had to prove how they were contributing to social and ecological sustainability.

But that is just one detail. Even more serious was the "Supply Chain Act", where even smaller companies were supposed to check how their suppliers in distant countries treat their employees, and the strictest liability was provided for false information.
The "taxonomy" is particularly onerous; it states which investments in the EU are considered climate-friendly.

All of these regulations should of course be reviewed by (expensive) consulting firms. While other continents foster innovation, Europe has shackled itself.
And now, suddenly, because the economy is not doing well, all the regulations are being watered down and perhaps even scrapped. The goals were fine, but too many regulations strangled growth. Have lessons been learned?