Atlantic capitalism versus Rhine capitalism in the European community

The advent of the Single European Market in 1993 has prompted a debate about the differences between the German social market economy and the British liberal market, and whether these can coexist. ‘Rhine Capitalism’ based on social solidarity will remain a source of competitive advantage through its emphasis on continuous development of labour skills and technology. Britain's ‘Atlantic Capitalism’ lacks such a framework for dialogue between government and producer interests, which will make the creation of a national competitiveness strategy to counter deindustrialisation problematic. At the European Community level, some regulatory framework similar to Germany's Ordnungspolitik will probably emerge to underpin the operation of the Single Market.