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New Labour and its Discontents
The week before the European Union summit in Amsterdam, Tony Blair delivered a Thatcher-style lecture at the Malmö gathering of European socialist parties. ‘As I said to the Labour Party a few years ago, we must modernize or die,’ he declared; there was no choice for the European Left but to adopt the New Labour cocktail of ‘labour market flexibility’ and ‘welfare reform’. Having effectively argued for the export of Thatcherism to the rest of Europe, and echoed the Bundesbank line that ‘emu cannot work if it is set up on the basis of a fudge’, it was not surprising that in Amsterdam Blair opposed any expansionary revision of the Dublin stability pact or any direct investment in job creation, and left the new French socialist government isolated. 
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