EU: Government Organized Crime
Exposing The Spiralling Cost of EU Regulations
Matts Persson: February 5, 2009
The Government’s own figures for the cost of legislation, reveals that instead of decreasing, both the flow of regulations and their cost impact have in fact skyrocketed. Since the launch of the reform agenda in 2005, the annual cost of regulation in this country has gone from £16.5 billion to £28.7 billion – an enormous increase of 74%.
Counted cumulatively, regulations introduced in the last ten years have cost the UK economy £148.2 billion – the equivalent of 10% of GDP, and enough to abolish income tax for a year, or cut the national debt by 24%.
This is in contradiction to the Government’s claim last month that the administrative cost of regulation is coming down.
Likewise, similar efforts at EU level have failed. Our study finds that a staggering 72% of the total cost of regulation in the UK stems from EU legislation. In other words, EU regulations introduced in the past ten years have cost the UK economy almost £107 billion.
The cost of EU legislation has gone up year-on-year over the past decade. In 2008 alone, EU legislation dating from 1998 cost the UK economy £18.5 billion – up from £12.2 billion in 2005.
If the current flow of regulation continues, by 2018, the cost of EU legislation introduced since 1998 will have risen to more than £356 billion. This is around £14,300 per British household. For the same amount, the UK Government could pay off almost 60% of the national debt, or abolish income tax for 2 years and still leave the Treasury with a surplus.
All this tells a clear story. The fundamental problem is simply not being addressed – Matts Persson Open Europe.