Does Europe Need Neoliberal Reforms?

This paper examines the neoliberal claim that the only way to achieve sustainable growth and full employment is to abandon Keynesian macroeconomic management and the welfare state and bring back flexible labour market policies. It summarises the conditions required for neoliberal policies to produce such an outcome and their relevance to contemporary economic, social and political realities. This is followed by an empirical comparison of the economic performance and social well-being of seven advanced economies, widely regarded as leading proponents of the three models of capitalism: liberal, corporatist and social democratic. Contrary to the claim, the model that performs best is the one that has least in common with the neoliberal economic orthodoxy - a conclusion that is likely to be of particular relevance in the present century