Opinion: Horsemeat lasagne is just like the subprimes

18th February 2013, Comments 0 comments

What do the subprime crisis and the horsemeat scandal have in common?

What do the subprime crisis and the horsemeat scandal have in common? "Both are the unfortunate consequences of globalisation" and of the lack of international regulation, says Dutch daily NRC Handelsblad. The paper notes that in both sectors, self-regulation failed and led to abuse -

Horsemeat lasagne is just like the subprimesOut of 55,000 EU regulations regarding agriculture, 30,000 concern food safety [...] but they are difficult to enforce. There are not enough regulators to make spot checks. Politicians are aware of this. The idea is that farmers, food processers and shops will ensure that everything is in order because they can be inspected at any time. It is thus in their interest. The self-regulation relied on to ensure food safety is also prevalent in the banking sector. Political leaders in the 1980-90s are responsible for deregulating and globalising the financial sector. When they realised that this led to abuse, it was too late [...] the system is not well conceived and the risks are underestimated. 

 

 

Read this article in Dutch.

Reprinted with permission of Presseurop.

 Presseurop

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