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bers of the EU by the numbers of new bureau-

a joint body of Estonian trade unions (EAKL)

crats those countries have employed. For

fears. According to Parnits, the EU labor legis-

example, the EU Commission commended

lation "costs," which is why she expects "some

the Hungarians for "boosting" their National

factories . . . to close down." Moreover, she

Labour Inspectorate by 80 new officials dur-

complains that "other safety improvements

will harm our possibilities of raising wages."48

ing 2002.52 The Czechs were compelled to

expand their Ministry of Labour and Social

I do not mean to dismiss concerns regard-

Affairs by an additional 450 staffers assigned

ing workers' safety and health but to point out

to the new Occupational Safety Office.53 But

how EU legislation impairs the productivity of

employers and employees alike. As the Centre

bureaucratization of economic life is precisely

for  Research  into  Post-Communist

what the CEECs tried to get away from by jet-

Economies argues, "Far from aiding competi-

tisoning communism in 1989. It is ironic that

tiveness . . . [the EU social legislation acts] to

more, not fewer, bureaucrats should charac-

discourage competition on costs, raise the bar-

terize the CEEC's entry into the EU.

rier to entry in many sectors, discourage firms

from taking on labor (and labor training) and

Environmental Regulations

promote the collective passing-on of the

EU environmental legislation covers envi-

EU members are

resulting higher costs in higher pricing--

ronmental quality protection, production

set on preventing

putting all EU manufacturers at an equal dis-

processes, and products. It sets air quality

advantage against foreign producers."49

standards; waste management procedures;

the countries in

water and nature protection measures; indus-

High unemployment in the EU is com-

CEE from imple-

trial pollution controls; regulations concern-

monly attributed to excessive social legislation

menting policies

ing chemicals and genetically modified organ-

on the national as well as the supranational

isms; and regulations regarding noise, nuclear

level, which makes it costly to hire and fire new

that would result

workers.50 Unfortunately, the EU members

safety, and radiation protection.54

in "too much"

with the most rigid labor markets are deter-

Specific regulations range from sensible

mining the EU's social agenda. What sense

ones concerned with transboundary transport

competition.

does it make to force the CEECs to adopt the

of nuclear waste to others that are far less sen-

sible.55 Those include decisions on ecological

same kind of failed social policies? It is appar-

ent that EU members that are incapable of

criteria for the award of the EU eco-label to

bed mattresses, dishwashers, and light bulbs.56

reforming their welfare states in the face of

opposition from deeply entrenched special

As benign as those regulations may seem, they

interests are set on preventing the countries in

should not be dismissed as insignificant.

CEE from implementing policies that would

Regulations increase bureaucratization of

result in "too much" competition.

economic life and bring about "public choice"

The EU has not evaluated the financial

dilemmas, such as rent seeking. The 2001 deci-

costs to the economies of CEE of the common

sion that granted Portugal "a derogation

employment and social policy. But the growth

regarding urban waste water treatment for the

of the bureaucracy responsible for enforce-

agglomeration of the Estoril coast" is instruc-

tive.57 In Brussels-speak, "derogation" is an

ment of the EU regulations can be used as an

indicator of rising costs. By the time of the

exception granted by the EU to a particular

CEEC's accession, the EU plans to hire an

regulation. Depending on the political weight

additional 5,161 bureaucrats to oversee the

of the member states and the compromises

new members' compliance with the acquis com-

they are willing to make in unrelated areas, the

munautaire.51 Of course, officialdom will

members can receive postponements of and

exceptions from costly regulations. Such prac-

expand in the individual nation-states as well.

tices, however, place disproportionate costs on

In fact, the EU Commission has repeatedly

less politically powerful states and skew the

evaluated the progress different countries

decisionmaking process.

have made on the way to becoming new mem-

9