06/04/2005 11:46:54 am
Britain Chooses Its Future. The British election on the 5th of May will be more interesting than they have been in years, perhaps since 1992. Basically, New Labour won the landslide victories by promising not to roll back the Thatcher reforms, pursue sound macroeconomic policies and improve welfare services. That is basically what they have done; and the market-oriented reforms in welfare services have been good - however small - steps in the right direction. But now, New Labour have tried to shape new visions for the future and they have found Sweden. But clearly, if anything, Sweden should go in the British direction and not the opposite. Following in the Swedish steps of very high taxes, dependency on government and failing public welfare monopolies can hardly be advisable. But according to projections, the British tax pressure is intended to rise from 39 % to some 43 % in the years to come. This is a fundamental change in British politics since 1992. New Labour wants to increase the size of the state. So far, the Tories have not challenged that vision more than on the margin. The positioning of the Tories in this fundamental respect - unlike their issues so far this year, about immigration etc - will have a large impact on the campaigns and British politics.