Sunday, September 23, 2007

Italy and France Pessimistic About Economic Prospects, BUT Scorn American US Economic Model

The ANNOTICO Report

Two common beliefs stand out  in a polling of Europe (13 countries): (1) a general gloom about their own countries economic prospects, and (2) a firm belief that the US is not the model to copy.

Italy and France were the two countries where respondents were least impressed by a "capitalist"  system - in which prices and wages were determined by unrestricted competition, with limited government regulation - .

Italians and French were also more convinced than those in Spain, Germany and the UK that multinational corporations had become more powerful than governments.

Almost 70 per cent of Italians, 58 per cent of the French and 47 per cent of Spanish described themselves as "pessimistic" about the future of their countrys economy.

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Definition of Capitalism Still Elusive

Financial Times 

By Ralph Atkins in Frankfurt

September 23 2007

The European economy or, more accurately, Europes economies, have changed markedly in recent years as a result of the forces of globalisation, government reforms and a monetary union that now sees 13 countries sharing the euro currency. But defining European capitalism" is as hard as ever.

An FT/Harris poll on systems of economic government highlights significant differences of opinion between countries on attitudes towards free-market, or capitalist, economies and over the role of trade unions and labour market regulation.

But two common features stand out - a general gloom among Europeans about their own countries economic prospects, and a firm belief that the US is not the model to copy.

The results come as European economies face testing times. After a lacklustre first half of the decade, characterised by low growth and high unemployment, fortunes have changed in recent years with joblessness falling significantly. But the euros rise, amid the recent global credit squeeze, to a record high, as well as high oil prices, are threatening to choke off that revival in coming months.

Almost 70 per cent of Italians, 58 per cent of the French and 47 per cent of Spanish described themselves as "pessimistic" about the future of their countrys economy. Opinions in the US and UK were more mixed, but in Germany 36 per cent described themselves as "optimistic", against just 33 per cent who were pessimistic.

The FT-Harris online poll surveyed almost 6,500 adults in Germany, the UK, France, Italy and Spain as well as in the US.

It suggested that Europes economies continue to develop with strongly national characteristics. When asked, for instance, whether a free-market system was the best economic system, the Germans and Spanish were the most enthusiastic, with 48 per cent and 49 per cent respectively saying Yes.

But Germans were also more convinced than the Spanish, French, Italians and British that Europe should not become like the US. That probably reflected Germans strong belief that social structures that allowed rapid growth in the decades after the second world war need to be modified - not jettisoned.

Speaking at a Frankfurt dinner on Friday night, Peer Steinbr|ck, German finance minister, argued that his countrys reform initiatives represent a successful renewal of our economic policy model of the social market economy.

We deliberately did not introduce an Anglo-Saxon model."

The countries where respondents were least impressed by a "capitalist" system - in which prices and wages were determined by unrestricted competition, with limited government regulation - were Italy and France. The French and Italians were also more convinced than those in Spain, Germany and the UK that multinational corporations had become more powerful than governments.

But the French and Italians showed a surprisingly negative attitude towards trade unions.

In both countries a narrow majority - 51 per cent - said trade unions did not have an important role in todays work environment.

That suggested trade unions might have overreached their influence in those countries, provoking a backlash.

In contrast, roughly two-thirds of the Spanish and German respondents and a majority of the British rated trade unions important.

http://www.ft.com/cms/s/0/833cdf70-69ee-11dc-a571-0000779fd2ac.html

The ANNOTICO Reports Can be Viewed (and are Archived) on:

Italia USA: http://www.ItaliaUSA.com [Formerly Italy at St Louis] (7 years)

Italia Mia: http://www.ItaliaMia.com (3 years)

Blog: http://AnnoticoReport.com

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