Europe’s Latest Power Grab

Europe is losing. Just look at the numbers.

Economic activity on the continent of Europe has been mostly flat for the last decade, all while America continues its ascent. Measured per-person, European GDP is about half of what it is in the U.S., and household wealth has grown three times faster in the U.S. than in Europe since 2009.

Instead of competing, European politicians are erecting barriers to American business. The most egregious might be the recently enacted Corporate Sustainability Due Diligence Directive. Don’t let the wonky name fool you. “CS3D,” as it’s been dubbed, seeks to impose European regulatory restrictions on American businesses just because they operate there.

The law holds any large company operating in Europe liable for environmental or human rights violations that occur anywhere in their global supply chain – anywhere in the world. Companies of a certain size will run afoul of the law if a contractor in Mongolia fails to file the proper paperwork or a supplier in Uzbekistan overlooks a European compliance code. The Europeans are ignoring other countries’ sovereignty to impose their red tape on the rest of the world.

European governments have choked off their own economies over the last two decades by adopting a thicket of rules, levies, price caps, and red tape that make it increasingly difficult for businesses to operate. This regulatory overreach has bled the continent of its economic vitality. But it’s not our fault the Europeans decided to tie both hands behind their back.