← Back to context

Comment by gobdovan

1 hour ago

They handicap our little companies more than the incumbents. The Commission itself acknowledged that regulatory costs affect SMEs proportionally more than bigger competitors [0] and the OECD explicitly found that policy failures and regulatory barriers tend to hurt startups more than incumbents [1][2]. The way I see the broader pattern is: more regulation -> larger bureaucracy -> larger bureaucracy has more scope and more incentive to regulate -> incumbent absorb growing compliance burden easily -> entrants get hit harder + ad-hoc regulations to hurt established outsiders even harder.

[0] TOOL #22. THE "SME TEST": https://commission.europa.eu/document/download/5d2011d7-5470...

[1] No Country for Young Firms? https://www.oecd.org/en/publications/no-country-for-young-fi...

[2] OECD, about Germany 2025, e.g.: 'Industrial and labour market policies have tended to favour incumbents and hampered the reallocation of resources to young and innovative firms, weighing on allocative efficiency and slowing down structural change' (https://www.oecd.org/content/dam/oecd/en/publications/report...)