ABSTRACT
In this chapter, the author explores another dimension of the search for a third way, namely, its close relationship to developments in the political economy. It argues that recent changes in the policies of social democratic governments in Europe are similar enough to describe them as a common movement toward something like a 'Third Way' and explores the relationship of these changes to transnational economic developments. The chapter considers the principal differences in the political economies and social policy regimes of the European nations and argues that these differences will condition the opportunities and constraints facing social democrats in each nation. It reviews the recent history of policy making by the social democratic governments of Britain, Germany and France with a view to establishing whether we find the differences in policy this perspective would lead us to expect and conclude that there are substantial differences in the recent trajectories of policy.
