CNE Monatsmagazin Digest
February 2006

English Summary

From Welfare State to Social State: In the German edition of his new CNE-Book, Wilfried Prewo, chief executive of the Hannover Chamber of Industry and Commerce and a board member of CNE, presents the cornerstones of a new European social model. The general criteria of his empowerment model can be applied to health, unemployment and pension insurance. In the presented excerpt readers learn how sick leave payments can be reformed. Differences in the duration and cost of sick leaves among countries, whose societies enjoy a similar health status, highlight the importance of institutional arrangements. The sick leave payments chapter is a paradigm to explain the main mechanisms and merits of the empowerment model.

Ordo-liberal orientation: German reforms over the last years made many people wish that politicians would rediscover ordo-liberal wisdom. No wonder: Not a single reform reveals a vision. This could be one of the reasons why Ralph Michael Wrobel and Bernhard Seliger decided to open an "Ordo-liberal Portal". It is more than a website for ordo-liberal op-eds. Readers find historical background information on German Ordo-liberalism and its founders, such as Franz Böhm, Walter Eucken, Ludwig Erhard, F.A. Hayek, Alfred Müller-Armack, Wilhelm Röpke and Alexander Rüstow.

Hayek on knowledge and action: Hardy Bouillon concluded his Hayek Endowed Professorship at the University of Salzburg with a public lecture on Hayek on knowledge and action. His reading was preceded by a speech of EU-Commissioner Dr. Benita Ferrero-Waldner. Bouillon stressed that for Hayek knowledge is to complex to allow for more than pattern predictions of future actions. He took up the cudgels for the depth of the argument with which Hayek defended the right freely to use one's knowledge. Bouillon especially looked at Hayek's most neglected book, The Sensory Order.

Dangerous Democracy: Criticizing democracy can be very dangerous, says publicist Ansgar Lange. Conservative author Winfried Martini experienced this 45 years ago with his book "Freiheit auf Abruf" ("Freedom on call", 1960). He was denied being a democrat even before. "How come", asks Lange, "he was a gifted stylist and used to tell awkward truths. Lange looks at Martini and at the same time reviews a new book by journalist Wolfgang Herles, "Dann wählt mal schön" ("It's your turn now to vote").

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Dr. Hardy Bouillon is Head of Academic Affairs at the Centre for the New Europe.