When the Laws of Economics Are Ignored

From today’s Open Europe news summary:

Dutch daily Trouw has seen leaked European Commission and Court of Auditors documents it believes shows that “the Czech Republic is committing large scale fraud with EU subsidies”, while “the European Court of Auditors has concluded in May that the Czech authorities have been lying to Brussels in a systemic way”.      Trouw Elsevier

Common EU subsidies have created a “tragedy of the commons”, whereby all EU members are encouraged to plunder the commonly owned resource (in this case “subsidies”).  Charges of fraudulently trying to increase one’s plunder simply ignore the power of economic law.  The subsidies are there for the taking and, I would suspect, national governments encourage their bureaucrats to find creative ways to get more plunder.  “Lying to Brussels in a systemic way” has been a common occurrence for years.  For example, Greece was admitted to the EU after it falsely claimed its budget deficits met EU rules.  Patrick Barron

This entry was posted in News/ Lessons. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s