As the debate on the modernisation and simplification of the EU’s Common Agricultural Policy (CAP) gathers pace, European policymakers are called – once again – to re-think Europe’s farming sector.
It is widely believed that healthy eating is relatively expensive whereas ‘junk food’ is relatively cheap. This has led to an assumption that poor diets and obesity are directly caused by economic deprivation.
The past record of industrial policy in the UK is a catalogue of waste and ineffectiveness. By the end of the 1970s it was widely accepted that the strategy of attempting to pick winners and promoting national champions was fundamentally flawed.
The development of personal pensions at the national and cross-border levels is hindered by high compulsory payments to public pension funds, restrictions on the participation of the self-employed and the unemployed, rules governing access to retirement savings, taxation of retirement income and other national legal requirements.
The precautionary principle provides non-farming interest groups with a pseudo-official means of influencing policy. The result is a drift towards overregulation and regulatory failures which are in conflict with the efficient working of the single market.
Can a country do better after leaving the EU? Indeed, we can perform an even more granular analysis and seek to establish in which policy areas the greater policy flexibility and decentralisation which comes with departure might outweigh the cost of losing the EU’s four freedoms and its constitutional barriers against bad government policy.
France badly needs economic reform. But we shouldn’t let negative news headlines blind us to the fact that the French economy has tremendous potential and that, provided a small number of important but feasible policy changes, it can do very well.