Where Now for European Social Democracy? - Policy Network

Lisbon:A Missed Opportunity forSocial DemocracyROGER LIDDLEFor several years European social democrats have been askingthemselves a pretty basic question. Can we devise a governingstrategy, consistent with our values, that guarantees economicprosperity in the modern world, while, at the same time, advancingsocial justice? With the economic core of Europe at best enjoyingsluggish recovery, this regrettably remains a big issue not only ofelectability against the forces of the Right, but also of whether theLeft can govern successfully.There are, however, deeper and more challenging issues for socialdemocratic thinking. Does a strategy to promote growth throughstructural reforms inevitably create ‘losers’ and damage social justice?How can social democrats justify painful structural reforms that mayin themselves deepen inequalities? Is it simply that once structuralreforms have moved the economy onto a higher growth path, socialdemocratic governments can channel that growth dividend into higherpublic spending that advances social justice? Or can we devise apackage of structural reforms more in keeping with social justice thanclassic neo-liberalism that is equally as effective in promoting growth,if not more so, and minimises the number of ‘losers’ along the way?Phrases such as ‘economic reform’ and ‘modernisation of theEuropean social model’ are freely bandied around in European debate.In themselves, these are loose concepts with intellectual origins asmuch on the neo-liberal right as the modern social democratic left.However, this essay focuses on the so-called Lisbon Strategy agreed bythe European Council in March 2000, which reflected a politicalmoment of social democratic optimism.Lisbon was a set of European Council Conclusions, not a party57