Revisionism Revisited: The Third Way and European Social Democracy

The “Third Way” became a synonym for progressive politics between or beyond neoliberalism (the new right) and traditional social democracy (the old left). Third Way politics responds to the transformation of the traditional industrial society into a vaguely defined post-industrial society, characterized, inter alia, by economic globalization; the increasing importance of information as an economic input and output as well as a structuring principle of economic activities; the emergence of a new underclass of unemployed or working poor; the increasing emphasis on the shareholder value; a new consensus on economic policy, emphasizing financial and monetary stability rather than economic growth; and individualization. In the European context, Third Way politics tries to enhance economic efficiency and to strengthen employment. It emphasizes that redistributive policies, typical of the traditional industrial society, are no longer sustainable and thus accepts a higher level of economic inequality. Although it offers equality of opportunity, civic participation and a new emphasis on inclusion as a substitute for “equality of outcome”, it lacks a convincing concept of social justice.