This chapter seeks to offer a balanced and nuanced view of conservative liberalism in French and Italian political economy by examining its key figures, the context of their work, what they thought and wrote, and how their thinking evolved. It also compares the significance of conservative liberalism in the discourses, policies, and politics of French and Italian political economy. In the case of France, the chapter examines the ideas and roles of Louis Rougier, Jacques Rueff, Maurice Allais, and Raymond Barre. It also discusses the Lippmann Colloquium in 1938; Rueff’s relations with Raymond Poincaré and Charles de Gaulle, especially in the period 1958–61; and the hard franc (franc fort) policy. The key texts of Rougier and Rueff are examined in detail. In the case of Italy, close attention is paid to the ideas and roles of Luigi Einaudi (including his connections to Wilhelm Röpke), Costantino Bresciani-Turroni, Luigi Sturzo, Guido Carli, and Francesco Forte; to the early post-war reconstruction; to Carli’s concept of the good and bad souls of Italy; and to external discipline (vincolo esterno) as a tool of economic policy. The chapter examines the stabilization traditions of France and Italy; the challenge posed by European economic and monetary union; and the deep hostility that emerged towards Ordo-liberalism in the wake of the euro area crisis after 2009.
The Political Economy of the European Economic and Monetary Union: Political Sources of an Economic Liability