DEI regulations compliance and procurement law exist because they are an uncommonly effective instrument for consolidating market share by big multinationals.
It's an extremely regressive tax and for big multinationals it means lebensraum.
In Romania as throughout the EU the future of compliance is a fully automated, algorithmic control.
Another consequence of modern compliance law is ESG audits. Multinationals have to satisfy their institutional investors, who enforce strict and expensive vetting down the entire supply chains. A small, agile supplier in Cluj can't compete.
This is not a new phenomenon. It's the secret of success for example of Philip Morris in Africa 20 years ago in lobbying successfully for more regulation and squeezing out their local competitors.
Philip Morris killed its competitors and is now killing their customers.
With increased automation and increased use of AI, the problem changes exponentially.
Business is a Darwinian world, always was and must be. What is remarkable is how many people come from nowhere, such as Jeff Bezos of Amazon, and create vastly successful and powerful companies, which then, in turn, may fall apart, as some people think Amazon might.
The most worrying thing, as far as I can see, is that, by excluding nimble small firms from competing and forcing them to work as subcontractors or to live off the largesse of the bigger companies, the room for innovation is moved from small individuals to big organisations.
In the next few years, we're going to see very much more competition from the Far East.
New companies are constantly needed, and anything that prevents them from growing and making money is bad, not only for the economy but also for the culture of Europe.
You might imagine that the defence sector is overwhelmingly dominated by big multinational companies like Lockheed Martin, but in fact a lot of small, originally very tiny companies in Romania have been very effective at producing drones for sale to the Ukrainians, something which the Ukrainians want and which makes money for Romania.
Not having any expert knowledge in this field, my default setting is to believe that state regulation is almost always a bad thing unless it can be proven otherwise. This is the exact opposite of the Napoleonic philosophy that animates the European Union.
We don't know how long the European Union will last, but it will last for quite a long time. The regulatory superpower will do a lot of harm to a continent which is already in steep relative decline, despite or because of being richer and more comfortable than it ever was in its history.



