Governments are puzzled how to respond to the conflicting demands of reforming the economy and increase growth on the one hand and to cater to disappointed voters who feel left behind on the other hand. This blog post argues that established parties can address these concerns by focusing on reforms that promote equity and efficiency at the same time. For example, they can reinforce social safety nets through retraining. A second option is to tackle vested interests in product markets rather than further liberalizing labor markets.
Philipp Ständer is Advisor at the Federals Ministry of Labour and Social Affairs, he formally worked for the Jacques Delors Centre.