EURONEWS reported 14 July on Redefining the post-crisis state, what is next for the US and Europe?

We have spent twenty years to changing relationships between states and markets, the assumption being that to be effective the role of government should be confined to the production of public goods and to ensure market stability. Next two contribution to sessions create insights;

- 'States, the new situation in Europe: How the Eurozone will be resolving its crisis' from Wolfgang Münchau and
- 'How far transfer of sovereignty?: The world of super-citizens, semi-states and competing capitalisms' from David Rothkopf.

To Musgrave, an American economist of German heritage who wrote The Theory of Public Finance (1959), the state is supposed to have three functions:

1. production of public goods;
2. stabilization of the situation;
3. the establishment of rules of fairness (to redistribution, to prevent too much poverty).

• limiting production of public goods (public allowance, private management with competition such as the telecom frequency);

• the claim that government intervention in markets was against productive and markets rebalance themselves (in that Thatcherism has prevailed in continental Europe);

• limitation rules of fairness with remuneration set by the market.

The crisis has challenged the division of responsibilities between states and markets, and the fact that the management contracts to be effective and new questions arise:

- How to make the state more effective? - How do you allocate the roles of states and markets?

- The return of the state is going there not be a source of conflict more serious?