The 'Little Big Bang' in Paris: financial market deregulation in a dirigiste system

Abstract. French dirigisme since World War II has been identified at four levels: economic planning; the dominance of a neo-colbertisre civil service elite; Gaullism and the Fifth Republic; and a state-led, credit-based system for financing industry. The last of these was seen by Zysman (1977, 1983) as the strategic core of dirigisme , as in Japan, through state control of industrial purse strings. Paradoxically, it was the Socialist Governments of 1981–86, in response to deregulation elsewhere, which initiated extensive capital market reforms intended to replace the state-led, credit-based system with an 'arms-length' financial market system. These continued under the right-wing Chirac Government. However, the reform process itself has been state-led rather than market-led; and both rigidities in the markets and shortcomings in the reforms have been highlighted by the October 1987 crash. Much dirigisme of a tactical kind remains, but the state's potential for strategic intervention has been reduced.     

FURTHER CONSIDERATIONS ON THE REFERENDUM: THE EVIDENCE OF THE WELSH VOTE ON DEVOLUTION

Abstract: Developments during the 1970s, suggest that the referendum might become a more permanent feature of British politics. The Welsh referendum provides additional evidence as to its operational characteristics, which indicates: that organized interests can play a significant, if not crucial, role; that the polarization of issues on a'Yes-No'axis promotes confusion; that external events and, in particular, the government's standing, intrude on the central issue; and that it fails to resolve problems, sometimes even in the short run. Despite this the referendum is likely to be used as and when party political expedients require.     

The Eurozone as a Flawed Currency Area

The European single currency system has come under unprecedented strain during the past three years and there is little reason to assume that this will diminish, in any significant way, in the near future. This article briefly explores the background to the current eurozone crisis before outlining a number of potential solutions. Specifically, we discuss how the credit crunch induced recession of 2008 triggered the problems within the eurozone regarding sovereign debt, looking at the issues of spill‐over and free‐rider effects, together with the implementation of EMU fiscal rules. The analysis is then extended by outlining a series of potential remedies. This consists of a critical evaluation of solutions that the EU has already instigated (i.e. moral persuasion, financial relief measures and debt default), together with a series of alternative propositions (i.e. fiscal federalism and a European Clearing Union) and even the collapse of the euro.