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Europe's Real Big Spender; Quietly, Blair's "third-way" Britain is inflating government to virtually continental size.(Cover Story)

Newsweek International

| August 09, 2004 | Foroohar, Rana | COPYRIGHT 2004 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Rana Foroohar

Here's a pop quiz: guess which European government has expanded the public sector at a rate almost unheard of since the 1970s. It has added 50,000 new government jobs, boosted overall public spending by 63 percent and, during just the last four years, increased average pay among civil servants by 20 percent. Needless to say, the tax burden has increased (albeit by stealth), and the country has gone from fiscal surplus to deficit within five years. Statist France? No. Sclerotic Germany? No. The big spenders run a country that was once a model for "Third-Way" reform--Tony Blair's Britain.

This old-style Labour buildup in government ...

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