Governments across Europe and North America are facing a stark choice: maintain expansive welfare states or meet rising NATO defence commitments. With aging populations, mounting debt, and sluggish growth, leaders in Germany, Spain, Canada, and France are beginning to admit the welfare state may no longer be affordable. The question is whether voters will agree.
When governments take ownership stakes in private companies, business decisions can become politicized, efficiency may decline, and taxpayer support often increases. Global experience – from the U.S. to Europe and Canada – show that mixed enterprises rarely outperform the private sector. The challenge ahead is ensuring policies encourage innovation and investment without blurring the lines between government and business.
