Post by Shadow on Oct 20, 2005 6:36:34 GMT -5
MSNBC
By Andrew Ward in Atlanta and Dan Roberts in New York
Rigid labour markets and excessive red tape are deterring US investment in Europe and pose a "huge danger" to the continent's economy, Fred Smith, chief executive of FedEx, has warned.
Restrictive regulations and heavy social obligations on employers make US companies, including FedEx, cautious about expanding across the Atlantic.
"Most US CEOs are particularly worried about the continued proliferation of regulations that come out of the EU," Mr Smith said in an interview.
While it is uncommon for such views to be voiced publicly, they are shared by many US chief executives who increasingly favour higher-growth opportunities in Asia and the US.
Historically, corporate America has invested far more money in Europe than any other region, but scepticism about the pace of economic reform poses significant risks to future inward investment.
Large US multinationals also regularly complain of the difficulties of operating in multiple jurisdictions and the restrictions that labour laws place on their ability to restructure existing operations.
By Andrew Ward in Atlanta and Dan Roberts in New York
Rigid labour markets and excessive red tape are deterring US investment in Europe and pose a "huge danger" to the continent's economy, Fred Smith, chief executive of FedEx, has warned.
Restrictive regulations and heavy social obligations on employers make US companies, including FedEx, cautious about expanding across the Atlantic.
"Most US CEOs are particularly worried about the continued proliferation of regulations that come out of the EU," Mr Smith said in an interview.
While it is uncommon for such views to be voiced publicly, they are shared by many US chief executives who increasingly favour higher-growth opportunities in Asia and the US.
Historically, corporate America has invested far more money in Europe than any other region, but scepticism about the pace of economic reform poses significant risks to future inward investment.
Large US multinationals also regularly complain of the difficulties of operating in multiple jurisdictions and the restrictions that labour laws place on their ability to restructure existing operations.