Reinventing ordoliberalism

The theory of ordoliberalism was initially developed between 1930 and 1950 by German economists at the Freiburg school. Its basic tenets were: A market economy, with strict competition rules and an absence of moral hazard (no undue protection against risk); An absence of macroeconomic imbalances (inflation, debt), thanks to the actions of the central bank and fiscal policy; Significant social welfare, redistributive policies and a minimum wage ( hence its connection with social market econom ics ); A clear preference for rules over discretionary policies. A European ordoliberalism could be fruitfully reinvented today, its benefits being: A favourable economic environment (no macroeconomic imbalances, strong competitiveness, distortion-free taxation); Confidence among companies (to innovate, develop goods and services of the future, etc.); Quality social welfare; A role for government limited to situations where there are significant externalities (energy transition, long-term investment, poverty reduction , education, security, etc.).