Economic Experts Speak out against Over-regulation

The West needs to stop unnecessary economic centralization and over-regulation to compete with the emerging powers of Eurasia in a deglobalizing world, participants of the “Free Market Road Show”, organized by the Danube Institute in Budapest, concluded on Tuesday.

The Free Market Road Show, an international series of events launched by the Austrian Economic Centre, aims to promote market-oriented economic thinking worldwide, the think tank recalled in a statement.

Neven Vidakovic, director of the business consultancy Loti Trading, said:

the most important problem in the European economy is that the current political leadership of the European Union is preoccupied with maintaining its own position”.

“Instead of internal lending to smaller firms, which is now necessary for global competitiveness, and reducing regulations and economic barriers within the EU, the bureaucracy is protecting itself, putting the brakes on economies with new and new regulations,” he explained.

According to business expert Terry Anker, the famous American consumer culture is being stimulated by political leaders hoping to keep people satisfied with the possibility of unlimited shopping and consumption.

However, this will lead to rampant personal and commodity lending and make the public extremely sensitive to interest rate changes by commercial banks,”

he added.

As for future solutions to these problems, the event participants agreed that serious savings are needed in all communities. Former ambassador to London, Peter Szabadhegÿ, pointed out that Greece had also been brought back into balance because its citizens had been forced to accept a real wage cut of around 20 percent. Accordingly, a state should introduce austerity measures when necessary.

Panelists warned against a serious China-US economic conflict, calling instead for the right boundaries to be drawn in relations between the two countries. Péter Szabadhegÿ drew attention to the fact that Hungary would also be badly affected by such a conflict, as the country’s economy is extremely open and therefore sensitive to global economic developments, the effects of which we are seeing now.

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