By Boris Kagarlitsky
Not long before the European elections, in which the social democratic vote collapsed, two of the most authoritative social democratic leaders, Tony Blair and Gerhard Schröder, published a letter in which they formulated the principles of the so-called "new centre" (neue Mitte). These principles could be summed up as arguing that the traditional ideas of social democracy (redistribution, a mixed economy and state regulation in the spirit of Keynes) needed to be replaced by new approaches in the spirit of neo-liberalism.
True, the authors of the letter took their distance from neo-liberalism itself, stating that they did not share its illusions that all problems could be solved through market methods. At the same time, they proposed to solve the problems of world trade by liberalising it further. Instead of solidarity, they called for increased competition, and instead of job creation, for preparing young people better for life under the conditions of a constantly changing market conjuncture.