BCC: European Burdens Barometer reveals staggering cost of red tape on business

Wednesday, 27, May 2009 12:00

Research published today by Eurochambres, the representative body for Chambers of Commerce across Europe, has revealed that 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.

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.

Commenting on the report, Francis Chittenden said:

"Our research shows that the EU Impact Assessment system is partial and lacking in rigour. Few member states have systems that are complete and open to proper scrutiny. As a consequence, EU regulations are largely driven by political considerations with inadequate assessment of the impacts on business and the economy."

Tim Ambler from the London Business School added:

“It is a pity the Commission's regulatory approach is out of touch with member states. Regulation needs to be coordinated."

David Frost, Director General of the British Chambers of Commerce (BCC), 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.”

Ends

For further information or to speak to one of the authors please contact the BCC press office on 020 7654 5813.

Eurochambres’ press office can be contacted on +32 (0)2 282 08 66.

Notes to editors

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people. For more information visit: www.britishchambers.org.uk