A European Union official, Mr. McGreevey, claims a portion of EU law involves overregulatOpponents of government intervention in the economy argue that externalities: Multiple Choice do not create problems for the model. are themselves the inevitable result of government policies. should be corrected with regulations rather than subsidies. may not be effectively corrected by the government.ion. McGreevey is suggesting the EU suffers in part from: Multiple Choice market failure. fairness. government failure. the rule of law