Every cost causes a difference at the margin. Businesses are fragile when small. And most of these costs are just economic dead weight, ridiculous paper proof of work schemes where all you're really proving is that you've wasted a certain amount of time and money.

If I were to identify one big flaw, it would be that EU governments don't recognize that small businesses can't do regulatory compliance as much, so they should be exempted. Or you get no small business formation that can turn into large businesses.