What it also does is allow companies to pay below living wage because the "rich" country will pick up the bill for the social care of the companies employees.
The "rich" country then doesn't get the corporation tax, which would help balance the losses incurred by large companies forcing wages down; instead that money goes to the lowest bidding country elsewhere that's not incurring costs from the company's operations.
Allowing this exploit makes the corporation's (and thus their owners/executives) richer at the expense of the workers and ordinary tax payers.
It's right for the EU to act in favour of its citizens in this regard.
Indeed you're right the money drains to the country offering the best deal, which isn't necessarily the poorest as they can't afford to give rich corporations such deals. There's probably a measure of legal framework too - how easy is it too bypass legal requirements by supporting the political party in power, that sort of thing.
The "rich" country then doesn't get the corporation tax, which would help balance the losses incurred by large companies forcing wages down; instead that money goes to the lowest bidding country elsewhere that's not incurring costs from the company's operations.
Allowing this exploit makes the corporation's (and thus their owners/executives) richer at the expense of the workers and ordinary tax payers.
It's right for the EU to act in favour of its citizens in this regard.
Indeed you're right the money drains to the country offering the best deal, which isn't necessarily the poorest as they can't afford to give rich corporations such deals. There's probably a measure of legal framework too - how easy is it too bypass legal requirements by supporting the political party in power, that sort of thing.