Capitalism versus Capitalism in Western Europe

Abstract

Globalisation and European integration are having a profound impact on Europe’s socio-economic order. Other chapters in this volume discuss the implications of these developments for macroeconomic management and welfare states. This chapter focuses more precisely on their consequences for Europe’s ‘models’ of capitalism. It argues that while there is still considerable diversity among the national ‘capitalisms’ in western Europe, both globalisation and integration are eroding national particularities, if not — as yet — pitching them towards full convergence. Their relative strengths provide them comparative advantage in different sectors; they therefore remain in competition and the outcome of that contest is yet to be determined. But opposition between competing models of capitalist development is also manifested at the transnational level where opposing forces pursue similarly diverse strategies. After examining the diversity of European ‘capitalisms’ below, we consider the arguments and evidence concerning their contemporary transformation. But beyond the changes occurring in national ‘capitalisms’, there is also a question of what kind of socio-economic order, or ‘model of capitalism’ is emerging within the supranational regime of the European Union (EU).