The taxes in Sweden are at 64% but the parties are not what they were as change has happened. "technological change and globalization have shrunk the traditional industrial working class and the trade unions, made jobs more precarious and thrown up new issues such as climate change, population aging, immigration, obesity and drugs." The Greens are powerful in Europe And the manufacturing work force is declining. Immigration is a big issue as the "guest workers" from different cultures are causing unrest. Such is the case with Irish Citizenship:""The effect of the amendment was to prospectively restrict the constitutional right to citizenship by birth to those who are born on the island of Ireland to at least one parent who is (or is someone entitled to be) an Irish citizen. Those born on the island of Ireland before the coming into force of the amendment continue to have a constitutional right to citizenship. Moreover jus soli primarily existed in legislation and it remained, after the referendum, for parliament to pass ordinary legislation that would modify it. This was in fact done by the Irish Nationality and Citizenship Act 2004 (the effects of which are detailed above). It remains, however, a matter for the legislature and unrestricted jus soli could be re-established by ordinary legislation without a referendum.""
Sound familiar? Vat is the tax that the French obtain 50% of the national tax income. So tis is a problem when that is not collected. All countries are in some sort of struggle. There are so many changes that it will be a while to see which ideas work and those that do not. No one system is sustainable because the climate that brought forth that ideology will cease to exist in time. Flexibility is very important as in stability. In the US the unstable economic situation is the cause for many citizens fear and upsetment. It can be said most people want to go to work and come home. Although many envy the lifestyle of the rich many are not willing to undergo the rigor to make it happen. That leads to another problem. Economies are not static they are dynamic. Change comes with the territory. The wish for stability is not doable. Government can help to ward of negative effects of those in fixed incomes but it cannot do everything. Nor can any one ideology flex enough to meet the constant change.
PARIS | Mon Sep 20, 2010 9:33am EDT
PARIS (Reuters) - The crash of Sweden's long-ruling Social Democrats to their worst defeat since 1914 highlights the decline of socialist parties in much of Europe, drained by social change, economic crisis and the rise of new issues.
The re-election of a center-right Swedish government for the first time in modern history and the entry of a hard-right anti-immigrant party into parliament show how far the times have changed, even in social democracy's north European heartland.
How the center-left should respond, and whether it can regain the ascendancy in Europe at a time when loyalties are shifting across the political spectrum, are now being fought out in internal party tussles in Britain and France in particular.
In Sweden as in Germany, France, Denmark or the Netherlands, the main party of the center-left has hemorrhaged votes in all directions -- to the hard left, the ecologist Greens, the populist far right but also to mainstream conservatives.
"Social democracy comes across as a victim of the crisis, when it should appear as a refuge or a hope after years of neo-liberal excess," French political scientist Laurent Bouvet wrote earlier this year.
Technological change and globalization have shrunk the traditional industrial working class and the trade unions, made jobs more precarious and thrown up new issues such as climate change, population aging, immigration, obesity and drugs.
The mainstream left is torn between trying to reconnect with a lost popular electorate and reaching out to an aspiring new class in the knowledge economy.
Swedish Social Democratic leader Mona Sahlin alienated some centrist supporters by agreeing to a formal coalition with the ex-communist Left party -- a move that the German Social Democratic Party (SPD) continues to eschew.
In countries such as Britain, France and Germany, where the center-left was in government in the early 2000s, it is regarded by many voters as having been a zealous accomplice in financial deregulation and economic liberalism.
Rising income inequality gave a hollow ring to the left's proclaimed ambition to redistribute wealth.
Now that most European countries are burdened with high deficits and debt mountains due to the financial crisis, the "big government" left is not seen as offering a credible answer to the question of where and how to shrink the state.
In many countries, public employees are the biggest bloc of socialist party members and constitute a brake on reform.
Socialists' long-standing support for European unification, religious tolerance and integrating immigrants has made them vulnerable to right-wing populists like the Sweden Democrats, Geert Wilders' Dutch Freedom Party or France's National Front.
These dilemmas are the backdrop to the choice of a new leader by Britain's opposition Labor Party this week, and of a presidential candidate by the French Socialist party next year.
In Britain, the choice is between sticking to the market-friendly New Labor ideology that marked Tony Blair's decade in office from 1997, or shifting to the left to try to win back disenchanted working class and public sector voters.
"We need to become 'effective state' social democrats, not 'big state' social democrats," Roger Liddle, one of the thinkers behind the New Labor project, said in a speech last week.
Former foreign secretary David Miliband embodies Blairite continuity, while his younger brother Ed, former cabinet minister Ed Balls and left-wing stalwart Diane Abbott offer varying degrees of the latter approach.
In France, the Socialists face a potential three-way choice between a social-liberal (International Monetary Fund chief Dominique Strauss-Kahn), an old-style socialist (current party leader Martine Aubry), and a left-populist (defeated 2007 presidential candidate Segolene Royal).
Aubry and Royal have vowed to reverse President Nicolas Sarkozy's pension reform, which pushes back the retirement age from 60 to 62 and makes many work until 67 for a full pension. Strauss-Kahn says retirement at 60 cannot be a "dogma" when people are living ever longer.
An ecologist list ran neck-and-neck with the French Socialist party in last year's European Parliament elections, siphoning off so-called Bobo voters (the bohemian bourgeois), while ex-communists and Trotskyists split another 10 percent.
In Germany, the Greens are snapping at the heels of the opposition SPD in opinion polls and may get a chance to lead a regional state government for the first time next year.
But the SPD has also lost support to the hardline Left party among working class and elderly voters who felt betrayed by its reduction of unemployment benefits and extension of the retirement age while in government over the last decade.
Where socialists are still in office, in Spain, Portugal and Greece, they risk alienating their core electorate by having to implement austerity measures mandated by the IMF and the European Union in exchange for financial support.
Only Greek Prime Minister George Papandreou has managed to retain his lead in opinion polls so far despite eye-watering spending cuts -- perhaps because his conservative opponents made such a shambles of running public finances until last year.
(additional reporting by Patrick Lannin in Stockholm; Editing by Kevin Liffey)
France is shrinking government to grow its economy:
And? The premise still holds. Many like China have both that is why in the future it is going to be a blend. The mistakes of the past are learned. There is no one system that will prevail over long periods of time. Things change and economics change with them. Think of this a vaccine for all STD's. A male contraceptive. Youthful very long life. Any of these would have great impact on the economy. That means the the system must adjust to the new realities.Without abandoning the promises. Tomorrow someone could discover FTL drive. Android workers.(chobits)* What to do then? Each era will bring new problems and new solutions. Who knows what will happen only that there will be change.
Germany is shrinking government to grow its economy:
By Ralph Atkins in Frankfurt and Peggy Hollinger in Aix-en-Provence
Published: July 4 2010 22:11 | Last updated: July 4 2010 22:11
Germany’s cabinet is poised this week to approve a 2011 budget as part of a four-year programme of public spending cuts meant to serve as an example to other European governments without jeopardising the country’s increasingly robust economic recovery.
Briefing papers for Wednesday’s cabinet meeting, released by Berlin on Sunday, argue that by curbing spending – rather than increasing taxes – the €80bn ($100.3bn, £66bn) savings programme would differ “fundamentally” from previous fiscal squeezes and offer “noticeable, better growth possibilities”
The comments appeared aimed at heading off international criticism that German fiscal austerity would hit Europe’s growth prospects.
Germany’s economy is enjoying an industry-led growth spurt, with engineers rehiring workers and returning production almost to pre-crisis levels.
The stronger-than-expected growth and falls in unemployment were making it significantly easier for Germany to reduce its public sector deficit.
Jean-Claude Trichet, European Central Bank president, moved on Sunday to boost confidence in global economic prospects. He said: “It is clear we are experiencing a confirmed recovery, not just in the emerging world but also in the industrialised world.”
Mr Trichet also backed fiscal retrenchment by European governments. He told Rencontres économiques, an annual gathering of the world’s top economists in Aix-en-Provence, France: “We have to reinforce confidence and that means having budgetary policies that are balanced and sustainable in everyone’s eyes.” He said growth was “not preordained” and structural economic reforms were “absolutely fundamental”.
His upbeat comments came in spite of signs last week that the global recovery was losing momentum, with manufacturing growth faltering in China and other parts of the world.
Germany’s fiscal consolidation plans met with international concern when outlined last month. But the budget briefing document said that of €11.2bn in savings envisaged next year, more than half would come by cutting spending. The same would also be the case in 2012. As such, the package “would differ fundamentally from earlier consolidation efforts”, avoiding “growth-hindering tax increases”.
The biggest cuts next year will fall on the labour and social affairs ministry, where spending will fall 8 per cent, and on transport, which will see a 5 per cent cut. But spending on education and research will rise more than 7 per cent – consistent with a pledge by Angela Merkel, chancellor, to protect investment in education.
Overall government spending is seen as falling 3.8 per cent next year, with smaller reductions in subsequent years before federal elections in 2013.
Among revenue-raising measures, Berlin hopes to raise €2bn a year from 2012 with a financial-market transaction tax. That could depend on agreement with EU partners on a continent-wide initiative.
The briefing papers say: “What is certain is that we will make sure that the financial sector makes a substantial contribution towards budget consolidation.”
The finance ministry also expects €1bn in savings from reform of the armed forces to kick in from 2013, rising to €3bn in 2014.
The budget plans are intended to fit with Germany’s “debt guillotine”, which requires a maximum structural deficit of just 0.35 per cent of gross domestic product by 2016.
The documents prepared for Wednesday’s meeting argue that Germany is setting “an example” within the eurozone and that there is “no alternative” to Berlin’s deficit-cutting plans: “For the stability of our currency and likewise for shaping our future, a solid finance policy is the central task in all EU member states.”
Copyright The Financial Times Limited 2010.