Dossier. Corporate governance
Focus. Capitalism and Business
Special 30 Years of Economia & Management
The Return of the State? It Depends
The financial crisis of 2008-2009 did not lead to a return of the state in the economy, but to a liquidity crisis. In Europe, this was less acute than in the United States, where for example the Troubled Assets Relief Program (TARP) avoided bankruptcies, but did not solve the underlying problems, such as those of the three large automotive companies (General Motors, Chrysler, and Ford), which suffered from structural weaknesses prior to the crisis. In Europe, the rigidity of the labor market and the capital market made it more complicated to restructure companies hit by the crisis, opening the door for an intervention of the state (but in only some countries), or at least to hopes for such an intervention.