A number of industries, which were previously, owned by the state, for example telecommunications, fuel and power, rail and air transport were privatised.
Services such as health and education were placed in to a competitive environment in which they had to manage their own income and their own budgets wisely. Within this 'mixed economy' framework, the degree of regulation, however, remained a subject of extensive debate. In Germany for instance the idea of planning in any form was widely rejected. France on the other hand adopted a system of 'indicative planning', intended to establish a state - controlled frame- work for the market economy. These remained also differences of opinion on the issues of nationalisation of key industries, the extension of social security systems and the size of the public sector in various west European countries. But the extreme of, on the other hand, a centrally planned economy were almost completely abandoned, as realistic options.
Arguably it is the United Kingdom that has made the mostly pronounced changes towards creating a more liberal economy. These changes were set in motion when the Thatcher administration came into power. Thatcherism abandoned the Keynesian demand management. The only goal, which eluded the government, was that of controlling the money supply. Moreover, John Major replaced Margaret Thatcher in 1990.
The Views of the previous government to the current government in power
The views of any politician will always be controversial whatever the circumstance. There are always different views from the government and they will do anything to go to the top of their league. The New Labour government are called ‘New Labour’ because they want to set out a new generation of rules to that of the previous labour government. The previous Labour government were in the 1960s and the 1970s and were for many things these included the following:
- State Control
- Nationalisation
- Nanny State
- High Tax
However, theses were all changed when the Conservative government came into power. This government wanted ‘Free Market Economics’. What's more is that they also wanted to privatise many businesses i.e. the rail industry. They also had an idea of Deregulation and a lower tax for the people.
Today the New Labour have got many ideas about doing many fixations which were different from the previous Labour government and also the last conservative government. New Labours ideas are acquiring ideas from the previous two governments and laying it together. (This is what creates the New Labour)
New Labour and the Conservatives have different views on the Euro. The Labour party are for this dramatic change, on the other hand, the Conservatives are against the Euro and are in favour for retaining the current Pound. Previously, the Conservative Party wanted the people of Britain to work for everything and therefore, wanted a very good economy however, this is the case with most governments that are in power. An example can be of Margaret Thatcher although she led the conservatives to three victories in elections she curbed trade union power, reduced income taxes, restricted local government, encouraged private enterprise and returned several nationalised industries to privatised ownership, thereby increasing the number of shareholders.
The likely impact on a UK business of the enlargement of the EU member states has got very positive prospects in what is going on today in Europe. There will a great deal in trading products locally and to other European Union states. Furthermore, there will be the likelihood of more profit being made for the company. However, the euro is at the same rate for all of the countries that are in this province. Therefore, sometimes there will be some interest made and also lost if one is stronger or weaker than the other. Also it would mean that the consumers are able to go out into ant European state and not fear about the currency that they are using. They do not have to ask themselves whether they are losing money or making it. It also give the consumer the opportunity on what they want to do if a products is cheaper in one country and they can buy over the Internet by using just one currency. As well there can be a downside effect to this people may not feel secure ordering goods from overseas as the internet connection may not be from a trustable source.
The countries that are already in the European Union and ones which are wanting to join.
Originally there were six states that started up the European Union. Today there are fifteen, and all of the members have the same rights. The countries of the European Union are as follows:
- Austria
- Belgium
- Denmark
- Finland
- France
- Germany
- Greece
- Ireland
- Italy
- Luxembourg
- Netherlands
- Portugal
- Spain
- Sweden
- United Kingdom
Above are the countries, which are in the EU next is a list of all of the countries that want to join the EU
- Czech Republic
- Estonia
- Hungary
- Poland
- Slovenia
- Bulgaria
- Latvia
- Lithuania
- Romania
- Slovakia
From this list now the state members will decide which countries are able to enter the Union. A number of resolutions will be taken into consideration and they can be the economic growth and the GDP of the country.
‘It is an opportunity too. An enlarged union with, in its initial phase at least, over a 100 million new citizens will promote trade and economic activity and give fresh impetus to the growth and integration of the European economy as a whole.’
