Endnotes

1     The metaphor of the 'Third Way' is of course much older and is by no means the exclusive preserve of Europe's social democrats. It was not only used by the Austromarxists in the 1920s, by the Socialist International in 1951, by the Swedish social democrats in 1990 and by the advisors to Bill Clinton, but was also used by the Italian fascists to characterise a path between Bolshevik Communism and democratic liberalism, as well as by Pope Pius XI to distinguish between collectivism and unrestrained individualism.

2     Apart from structural defects and the conviction that it erodes the work ethic, there are two other reasons for New Labour's view that reforms are needed: first, because the 'old welfare state' burdens "national" business in a global economy; and, second, because tax payers are less and less prepared to pay for unproductive social transfers.

3     The critique that Giddens' emphasis on duties and responsibility to society is directed not towards the rich and powerful (they have done their duty), but towards welfare state dependents (Ehrke 1999: 20) is thus polemic, wrong and untenable.

4     In Sweden this also functioned only as long as a collective work and community ethic prevented the abuse of welfare benefits by rational free-riders (above all in the 50s and 60s). The reforms of the Swedish welfare state in the 1990s are aimed at eliminating the increasing level of free riding without endangering the ideals, core and substance of the welfare state.

5    For the Red-Green coalition in Germany this is certainly not a heightened constraint, as the ECB may follow a more relaxed monetary policy in the medium-term than the German Federal Bank. However, for countries such as France, Italy and Finland there is in future likely to be less scope for action.

6    This should not be understood as an accusation or betrayal. It simply recognises the fact that the nature of politics in democracies depends a lot on voter choice. However, if voters' party loyalties have become weaker and individual voting decisions depend less and less on the socio-structural and socio-cultural socialisation process, then parties will adapt themselves much more to the changing voter preferences (which are strongly influenced by the media) than to the long-term programmes based on normative principles and rational structural considerations.

7    Lijphart classified Great Britain (like most Anglosaxon democracies) and Switzerland close to the ideal-types for majoritarian and consensus respectively. In the current social democratic governments Great Britain and France tend more strongly towards a "majoritarian" and hierarchical style of politics and decision-making, whereas the Netherlands, and likewise Germany, (has to) tend more towards consensual politics (see below).

8     I would like to thank my student assistant Christian Henkes for his research, suggestions and criticism in this chapter.'

9     Even after a year in office no comparably clear profile can be identified in the red-green governing coalition in Germany. Constrained by an institutional set up that forces compromise, the New Centre is in many respects still moving along the 'centre path' (Schmidt 1990) that has consistently shaped the policies of federal governments in recent decades.

10    Despite its obvious importance, monetary policy is not taken into consideration, because, with the exception of Great Britain and Sweden, it is determined by the European Central Bank for all countries under study.

11    The consideration of the strengths and weaknesses is based on an elaborated version in the positioning paper 'Dritte Wege - Neue Mitte' by the 'Grundwertekommission beim Parteivorstand der SPD', for which I am responsible.

12    Nonetheless, on its first day in office the Blair Government gave the reserve bank responsibility for making operating decisions about interest rate settings.

13    Nevertheless, the number of those living below the poverty line in spite of earning a working wage is considerably higher in Great Britain than in most countries in the European Community.

14    The rate of female participation also continues to lag noticeably behind the European average.

15    All figures are from the OECD Employment Outlook June 1999.

16    With the education and training offensive the new Labour Government also made an effort to close the productivity gap existing between it and the EMU countries.

17    It was always one of the most important strategic arguments in favour of the unversalist welfare state in Sweden that as many people as possible should benefit from it so that it would also be in their own interests to retain it (see, for example, Esping-Andersen 1985).

18   In Great Britain the reforms were mostly implemented by the governments of Margaret Thatcher and John Major and simply accepted by the Blair Government. The Blair Government's reform policies were therefore able to build on a much more deregulated economic and social system than the Dutch social democrats were able to do post-1989.

19   The positive employment record thus began well before the social democrats returned to power (1989), but was extraordinarily successfully continued by them.

20   The price of this, however, was productivity growth slower than the OECD average (as in the USA) (Visser/Hemerijk 1998: 45).

21    This more just distribution relates both generally to insiders' and outsiders' opportunities for participation in the labour market and, specifically, to the gender-specific distribution of jobs.

22   The even more comprehensively developed Swedish welfare state rests more strongly on the principles of universalism and financing through taxation and is therefore considered as part of another welfare state category (cf. Esping-Andersen 1990; Schmidt 1998).

23   At the beginning of the 1980s Sweden had the smallest level of after-tax income equality in the entire OECD (Merkel 1993: 168).

24   Since 1997 Norway (75.6%) has replaced Sweden (74.5%) as the OECD country with the highest rate of female employment. In 1997 Germany had a female employment rate of 61.4% (OECD Employment Outlook June 1998: 193).

25    Measured against the import/export share of GDP this was already the case even at the peak of the ¡®Swedish model¡¯ in the 70s.

26 The participation rates in Sweden remain among the highest in the European Union, although they have in the meantime been overtaken by Denmark and Great Britain.

27  See Maravall 1997 for discussion of the development of the Spanish labour market.