European social democracy between planning and market: a comparative exploration of trends and variations

Since the 1970s many social democratic parties have moved in a neoliberal direction. This article examines the variations in the orientation of social democracy towards welfare state retrenchment. There are significant differences in this respect in thirteen Western European countries. Social democratic parties that opt for market solutions in socio-economic policy-making are mostly positioned in welfare state regimes with a strong planning tradition. The planning option is often chosen in countries with a strong market tradition. In both instances the goal is the same: striking the balance between planning and market in a mixed economy by adapting to changing socio-economic conditions. Most social democratic pledges in favour of market solutions are not signs of irreversible neo-liberalism, but merely attempts to assure the economic viability of welfare statism.