Daniel Tarullo

Recent Articles

Can the European "Social Market" Survive 1992?

What will happen to Europe’s high labor and environmental standards as the European Community creates its single continental market? The example of European regulatory federalism, bolstered by stronger political parties and trade unions, may be instructive for America.

As the European Community continues the bold march toward a single market, its ideological import is very much in contention. EC President Jacques Delors has viewed 1992 as the first major step in political confederation, creating a continental polity to match the emerging pan-European market. In contrast, the Thatcher view, cheered on by American conservatives, was that EC-1992 would liberate market forces from the sclerotic regulation of inward-looking nation states; Thatcher fell, in part, because she seemed outside the emerging consensus. For American liberals, postwar Europe has been a beacon of social policy -- proof that a dynamic economy can coexist, however uneasily, with an advanced welfare state. The 1992 project, initially a response to faltering economic dynamism, will signal whether the European social market can keep pace with rapidly globalizing private commerce. The international economy, in many ways, has outstripped the capacity of nations to govern. The increasing...