I have grown fond of the taste of Parmalat milk. Parmalat is the leading producer of shelf-stable milk in North America. I think the different taste comes from the higher pasteurization temperatures for shelf-stable milk. It was certainly a tough holiday season for the milk producer from Parma, Italy (In Italian, Parma + Milk = Parma + Latte).
The recent scandal is bound to have a large impact on the new European Union. It would seem problematic for the European Union to now have to deal with a crisis like this. The European Union is set to admit new members and incorporate the national products of the entering countries into the larger EU market. Recent policy has been to limit state aid for agriculture products and place trade quotas for new member countries. According to an EU commissioner, "' the Parmalat scandal will have a significant impact on a range of EU policies for years to come,' "
The scandal is sure to require political wrangling. The scandal will bring in regulations for the financial industry and business, in general. It will be interesting what types of regulations will be put in place to guard against accounting irregularities. It is definitely an issue the EU politicians will have to deal with. I wonder if the governance to come from this scandal will resemble anything like the US Sarbanes-Oxley Act. I have a suggestion for a name, the "Ahern-Tremonti Act."
On the downside of this type of scandal are the regulations that are enacted to codify good business practice. The regulations make barriers of entry for small businesses. It is another cost of doing business for companies to factor. I think the regulations will be taken is stride in the EU because of the high amount of regulation on business in the EU.
posted by Silentman, Henry C. @ 21:14 hours MT(GMT-7)
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