relocation
Mon, 11/05/2009 - 7:49pm
relocation
The EU should create incentives to prevent production entities from moving to countries with lower wages. The EU should sanction all companies that have benefited from EU financing and subsidies and which relocate outside the European Union. It should do this by demanding the reimbursement of public subsidies given to these companies and introducing taxes that would finance social plans.
It is very noble to wish to preserve EU workforce and I agree with the utopian inside of the recommendation. But we have to be realistic, in this competitional economic market, if we force EU companies not to relocate it will mean they'll have to spend more on everything and then the final price of their products will be far more expensive than the ones from the developping countries and then what will we choose?A cheap non european good or an expensive european one for the same product...So i think if we want to survive we have to get back to a little help from the governments in order to protect and encourage companies fighting not to relocate.
I would do a different thing, goods produced outside of the EU (only goods which could be produced in the EU, not bananas or something like that) should get a tax on them, which is about 300-400% of the buying price