ABSTRACT
This chapter explores the fascinating diversity of corporate governance forms in Europe, and the distinctive features of this relationship based approach. The importance of bank finance and business networks are examined, which traditionally provide sources of finance and resources that in the Anglo-American system is the role of equity markets. The different political and legal structures of Europe have produced a rich array of corporate governance codes which are outlined. The deeper transformations of the industrial and governance systems of Germany, France and Italy are examined. Notable failures in European corporate governance are discussed as the backdrop to the sustained movement for corporate governance reform. The efforts of the European Commission to achieve a modernising of company law and enhancing of governance is considered. Whether this amounts to a harmonisation or convergence of corporate governance in Europe is a controversial question, made sharper by the impact of the Anglo-American ideology of shareholder value which is seen as an increasing threat by many. The increasingly international role of Europe is mentioned, and the prospects of a more active shareownership. Finally the struggles of the transitional economies of Eastern Europe are considered. What is apparent is the profound sense of flux and change in Europe, matched by a determination to hold on to essential values.
