Sustainable Growth on Third Way
Prime Minister of Finland
In a sort of massive worldwide pendulum swing, the world economy shifted from the planned economies of past decades to a period of market liberalism. Both of these economic doctrines have eventually failed. First socialism and then free-for-all capitalism both came to an impasse.
Today, virtually everyone is searching for a third way for the economy, with the State playing a stronger role yet without compromising the principles of the market economy. This is also a way for the European Liberals to take.
For me, the market economy has never dictated the rules. I have always been in favour of having the best of both worlds - collective responsibility coupled with market economy alike.
The State plays the role of the game master who sets the rules for the market to follow. The market must be sensibly regulated in order to avoid excesses of the kind witnessed recently. This will enable us to promote the welfare of our citizens in a sustainable way. A valid argument for a stronger future role for the State is that a greener society cannot be built exclusively through the operation of the market forces.
Because of our political heritage, I think that we cannot base our society on economy alone; Europe must be not only a leading economic force, a home of expert-based industrial production but also a community of values with strong commitment to those who are more vulnerable.
By Matti Vanhanen, Prime Minister of Finland
Tags: community of values, market economy, rules, third way, welfare