R.I.P. European Free Market? The Evolution of Government intervention in its markets.

On October 30, the Economist posted an article (http://www.economist.com/world/europe/displayStory.cfm?story_id=12510261) proclaiming the looming danger of European governments response to the looming recession that is rapidly becoming more widespread across global markets. The dangerous response in question was that regarding the notion that a greater form of government control and regulation over what is already seen as a somewhat recognized socialist style market system. Some European governments have institutionalized many important commodities such as healthcare, and now many European leaders are taking the viewpoint that this new crisis is a sign that the economy is not regulated enough. While it is not surprising that some nations have adopted this notion, such as France, a notable advocate to a more government regulated economic system, others have comletely reversed their stance. One example of this is Italy's prime minister, Silvio Berlusconi, a former communications tycoon and former staunch advocate of a deregulated economy, has completly done an about-face on his position and is now standing with French President Sarkozy on the idea that more government regulation is now the best solution to fix this crisis. That is not to say that all European leaders agree with this idea. Germany's economic minister, Michael Glos, has made several statements warning that this idea could be even more catastrophic to the economy. As the economist magazine editor notes that history shows that state run industries often fail to match their purpose of existence and might even backlash.
I think that it is vital that European leaders rethink any strategy they might have to revamp the eocnomy via government regualtion and rule in favor instead of further de-regulating the economy, away from government control. The magazine has another point, that while politicians may accuse the symbolic corporate "fat cat" for the cause of the crisis, and that politicians themselves portray themselves as saviors, the politician's motives may also be in league with that of the corporations themselves rather than the public interest. What do you think?