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Why can't it be both?
The EU has a bunch of environmental, labor, protectionist, and health regulations that make doing business there less profitable.
Also, we were talking about Europe, not specifically the EU government layer. So, all the taxes to fund the bureaucracy and state provided services should be included on this side of the ledger. (I shouldn't have said "EU bureaucracy", when I meant the general amount of bureaucracy in the EU.)
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It's easy to use confusing wording when discussing the EU as a place with certain common traits but not necessarily the EU organization.
This happens when discussing America, too, as most of our laws and taxes are also not national.
Taxes (but those aren't set in Brussels)