Only a short stretch of water separates Britain from continental Europe, but often it seems that the Channel is wider than the Atlantic. Many of Britain's difficulties as a member of the European Union have arisen because its economy and politics have tended to move more in line with America than with the rest of the EU. This is changing under Tony Blair's Labour government, as taxes are raised in order to finance the commitment to raise health spending to European levels. Historians may judge the budget which Gordon Brown, the chancellor of the exchequer, delivered this week as a watershed in Britain's economic destiny: the moment that Britain decided it was more European than American. Under the Conservative governments of the 1980s and 1990s, Britain looked to American free-market ways rather than to Europe's social-welfare model for ideas on economic reform. Until now, New Labour has sought to keep a foot in both camps. Mr Blair has zealously maintained the special relationship with the United States while seeking to rebuild bridges in Europe, not least by stating his commitment in principle to joining the euro. For his part, Mr Brown has sought to blend American dynamism with European-style social cohesion and public services.
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