The Need for a Social Market Economy

• Author: José-Maria Gil Robles
• Position: University of Madrid, Spain. Past President of the European Parliament
• Pages: 13-18

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T EA U R, V. 1 N. 0/2014

The Need for a Social Market Economy

José Maria Gil-Robles*

1. Introduction

Article 3, indent 3 of the Treaty of European Union states that Union shall

work for sustainable development of Europe based in the Social Market

Economy specifying three characteristics:

- it must be a highly competitive economy,

- tending to full employment and social progress, and

- with a high level of environment protection.

Social Market Economy is not the “Welfare State” even if they are often

confused; Social Market Economy is a theory with antecedents in the “new

liberalism” (Lipman, Hayeck, etc.) and in politicians like Rathenau, but was

in fact developed by the Fribourg School: Walter Eucken, Alexander Rüston,

Franz Böhmy, Wilhelm Röpke, and inspired the politics of Alfred Müller-

* University of Madrid, Spain

Past President of the European Parliament

is article is based on the author’s opening of the International Conference “Social Market Economy

as Europe’s economic model”, organised by the Konrad Adenauer Foundation in cooperation with the

Jean Monnet Centres of Excellence of the Universities of Madrid and Pavia (November 28-30, 2012).

e autor is eager to express his deep gratitude to the remarks and enrichment that he received on this

subject from the other participants in the conference: Mr. Lange, Dr. Gehrold, Dr. Glossner, Prof.

Felisini, Prof. Wohlgemuth, Prof. Funk, Prof. Krienke, Mr. Matthes, Mr. Lieberherr, Dr. Horn, Mr.

Freudenstein, Prof. Nieto, Prof. Velo, and Dr. Borchard.

Of course opinions expressed in the article are exclusive author’s responsibility.