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A British economic model for Europe?

While some conservatives in Europe say a hearty helping of Thatcherism would revive the Continent",s flagging economies, most are still suspicious of the Anglo-Saxon model. Its relatively low taxes and stingy welfare payments have proven generally good for jobs and business, but have done little for poverty and equality. One current of European thought, which favors greater regulation and social protection, scoffingly portrays the Anglo-Saxon model as good only for free-market buccaneers. Another, popular in Scandinavia, is generally appalled by the neglect of the underclass.

Aware of Britain",s poor record on social justice, Tony Blair has sought since he was elected in 1997 to remold various aspects of the British system to make it more compassionate, though not less dynamic. ",This is modern social policy, not regulation and job protection that may save some jobs for a time at the expense of many jobs in the future,", he said. ",Of course we need a social Europe. But it must be a social Europe that works.",

British Prime Minister Tony Blair believes the Anglo-social model is one that the rest of Europe can and must imitate. In a speech to the European parliament in June, he warned that Europe was trailing the U.S. in productivity and falling behind India in producing science graduates. He called for his EU partners to spend less money on regulation and job protection and more on investing in ideas of the future: knowledge, skills, education, and science parks.