Dealing with Regulations

Market regulations in the European markets present a concern. In spite of the good intentions by the EU commission in its effort to make Europe more competitive, I have not seen much progress in the retail sector. Generally I believe this sector is one of the more competitive ones. If you look further back in the supply chain, you find many sectors with very limited competition. The service directive approved by the EU started with good intentions, but in the end it contained so many compromises—imposed by the individual countries of the EU—that it made little substantial difference.

Regulation concerning retail licensing is getting worse. Its effect is to prevent big retailers from expanding, thus making Europe less competitive and reducing new job opportunities. The trend is going in the wrong direction in many markets, such as France and Britain. The regulations regarding opening hours are another example of a restriction with a big impact on competitiveness and where little progress has been made toward standardization.