Europe's better model of capitalism

For Trouw newspaper, Rhine - or European - capitalism is better suited to meet the challenges of the current financial crisis than the Anglo-saxon brand of capitalism. "American misconduct was the origin of the crisis. For years both the state and the citizens ran up an absurd number of debts, giving the impression that they would never have to be paid back. ... But there is another form of capitalism, known as Rhine capitalism because it is found in the countries lying along the Rhine. This type of capitalism also creates prosperity by allowing business to compete freely on markets. But it has more securities built into it. ... Shareholders have influence, but so do employees. The business culture in this form of capitalism is also geared towards profit, albeit with a more long-term perspective. ... The ties between financial markets and production have not been totally severed. But here there is a state that controls and a central bank that forbids excrescences in the banking sector. It remains to be seen whether this is the ideal form, but both the British and the Americans now recognise that there is a difference between Rhine capitalism and Anglo-Saxon capitalism. In the past both regularly pointed disparagingly to the cautious European continent as an example of how not to do things. Luckily here we have maintained our differences. Luckily here the state and the citizens have fewer debts than in the US. And luckily we now know the direction in which we must develop to create prosperity without winding up as a casino economy."

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