1. "The Commission of Brussels, and later the Central European Bank, were determined to keep faith with the original spirit of freedom in opposition to constant pressure from national governments to socialize Europe: the Commission has been a consistent force for deregulation and competition. The euro, moreover, was created to force states to balance their budgets, just as free-market monetary theory prescribed.
2. Unfortunately, the national governments thought it possible to reap the economic benefits of a free Europe and the electoral delights of socialism. By socialism, I mean the unlimited growth of the welfare statethe accumulation of entitlements and jobs protected by the state. This de facto socialism, this sedimentation of electoral promises and acquired rights, grew in Europe at a much faster rate than did the economy or the population.
3. The result was a remarkably homogeneous indebtedness in all the countries of Europe, on the order of 100 percent of national wealthranging between Germanys 91 percent and the Greeks 133 percent (a relatively modest difference), all reflecting a common socialist drift. All European states are run socialist-style, in contradiction with the European Unions free-market principles. Some will be more able than others to deal with defaults, but all have drifted off course.
4. The true cause lies in ideology. Socialism dominates minds across Europe, whereas liberalismwhich has retained its original free-market meaning in Europe [classical liberalism, i.e. conservatism] is under attack in the academy, in the media, and among intellectuals generally: to support the market against the state, to recommend modesty on the part of the state, is taken for an American perversion.
5. ts almost impossible for a non-suicidal politician to win election without promising still more public solidarity and still less individual risk. These welfare states, through their financial cost and the erosion of ethical responsibility that they foster, have smothered economic growth in Europe."
End of the European Siesta? by Guy Sorman, City Journal 25 June 2010
2. Unfortunately, the national governments thought it possible to reap the economic benefits of a free Europe and the electoral delights of socialism. By socialism, I mean the unlimited growth of the welfare statethe accumulation of entitlements and jobs protected by the state. This de facto socialism, this sedimentation of electoral promises and acquired rights, grew in Europe at a much faster rate than did the economy or the population.
3. The result was a remarkably homogeneous indebtedness in all the countries of Europe, on the order of 100 percent of national wealthranging between Germanys 91 percent and the Greeks 133 percent (a relatively modest difference), all reflecting a common socialist drift. All European states are run socialist-style, in contradiction with the European Unions free-market principles. Some will be more able than others to deal with defaults, but all have drifted off course.
4. The true cause lies in ideology. Socialism dominates minds across Europe, whereas liberalismwhich has retained its original free-market meaning in Europe [classical liberalism, i.e. conservatism] is under attack in the academy, in the media, and among intellectuals generally: to support the market against the state, to recommend modesty on the part of the state, is taken for an American perversion.
5. ts almost impossible for a non-suicidal politician to win election without promising still more public solidarity and still less individual risk. These welfare states, through their financial cost and the erosion of ethical responsibility that they foster, have smothered economic growth in Europe."
End of the European Siesta? by Guy Sorman, City Journal 25 June 2010