Suchergebnisse

This paper analyses the main characteristics of the European Socio-Economic Model. We discuss how the model varies across countries within Europe, examine how the model has changed over time and compare the European model with the corresponding US model. While the differences with regard of growth dynamics are very small in the long run (1960 to 1990), growth rates diverge in the past 15 years. Performance differences as well as the reforms which have taken place, allow us to delineate elements of a "Reformed European Model", which on the one hand upholds important characteristics of the European Society, but on the other hand can still be competitive in the globalised economy.

There are large differences between Steindl's ideas on growth policies and the Brussels/Paris consensus. Steindl called for innovation and education policies, the mainstream today rather favours deregulation and privatisation. Steindl stressed the positive demand-side effects of the public sector and the contribution of lower household savings and anti-cyclical policies to growth. The economic mainstream praises the efficiency effects of a declining public sector, the importance of high savings for investment and warns of active anti-cyclical policies being an impediment to budget consolidation. Steindl and the Keynesians regarded the labour market situation as a consequence of economic growth. Today many economists see low growth as a result of labour market rigidities.