Tuesday, April 04, 2006

EU pushes lawsuits over protectionism

With the rise of protectionism around the world, it is good to see strong legal action being taken in Europe to check this trend.

Protectionism between major economies is worrying, but to see it happening within the EU strikes my as near economic suicide. Europe can only compete against the US and a rising Asia as a unified bloc. To begin to errect these sorts of internal walls will make the EU even less competitive, and will be a major distraction as indidivudal countires focus on competing against each other rather than competing (as a bloc) against other global economies (US, China, India).

I hope European Commission's actions are for real and not just touch anti-protectionism talk with little to back it up. As we've seen from the protests in France, Europe still has a lot of social barriers to overcome. They needn't create more by errecting protectionis walls.

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