1. Models of capitalism The primary aim: show how the “institutions matter” problem is solved in terms of models of capitalism. Politico-economic perspective on institutions: * Complementarities *Governance endogenous to markets

2. A European model of capitalism? A variety of models: Power of the State Degree of market Coordination UK Germany France

3. Institution: Shared norms that influence the decisions taken by economic actors Important coordination mechanisms. Some kind of enforcement mechanisms, which are part of the institutions.

4. Typical models of capitalism: The market based (US, UK) Social-democratic (Sweden, Denmark) Mesocorporatist (Korea, Japan) European-Integration/Public (France, Germany) ’Alpine’ variant (Austria, Switzerland) ’Meditiranian’ variant (Spain, Italy)

5. Institutional Comparative Advantage: a history of the debates: Gap in the EU between Continental model of capitalism (the coordinated market economies France and Germany) and an Anglo-Saxon model (the liberal market economy UK) European stagnation was created by poor policies (Welfare Capitalism) Stagnation was caused by Corporate institutions