Performance and Risks in the European Economy

Abstract

The two great challenges for any authority are to what extent and how to intervene in the
functioning of the society. These challenges originate both in the world of ideologies, defining the type of
state or authority based on its propensity for regulation, and in the technical expertise of technocratic
management that can identify the “good practice” and “good governance” features. Both policy sources are
necessary and legitimate. The ideological sources help support a representative mandate obtained by an
elected power, being validated by citizens’ vote, while the technical ones contribute to optimising the
efficiency of the public option by managing it in an appropriate manner. To set a simple example, if the
ideological option is in favour of maintaining a company under state ownership, then the technical option
may be to ensure a competency-based management controlled solely according to performance criteria. If
the ideological option promotes the privatisation of a state-owned company, then the technical option may
seek to ensure a privatisation procedure that should maximise the public benefit (through price, other
contractual terms, enhanced market competition, clauses or measures to protect consumers, etc.)