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by wobbleblob
3932 days ago
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The intention with EU regulations like these is usually to prevent a 'race to the bottom' as they call it. They're turning the EU into a common market without internal trade barriers, but when you do that, what happens when one country has a VAT of 15% and another of 25%? Businesses that can move, will move (administratively) to the 15% country, forcing all countries to lower their VAT to the lowest level. You can argue that this measure isn't working, or that the cost outweighs the benefits, but I don't think it is regulatory capture. Brussels is really trying to minimize the impact of the common market on member states' domestic policies. |
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Regulatory capture is almost always given some reason behind it. As such when determining if something was regulatory capture, the stated reasoning behind it is ignored, which is why I was asking to what extent did multinational organizations influence this decision.