The Third Way has been often hard to holistically summarize, partly due to its flexible nature of putting ends before means, that is prioritizing achieving social justice rather than focusing on the methods by which one achieves social justice. Often cited as the easiest summary of the Third Way is 'rights with responsibilities' – for example, pairing the right to education with the responsibility to put effort towards achieving good grades. On economics specifically, a great deal of the emphasis of the Third Way is placed on tax revenue, and the means by which it is generated. The Third Way argues that wealth must be enticed in a globalized economy, and that any capital flight caused by high taxes is counterproductive to generating tax revenue, for future tax revenue will be lost. The Third Way argues that growth is the best way to raise tax revenue, and that growth can be achieved through a free market economy, fiscal discipline and a healthy human capital stock.
The Third Way has been advocated by proponents as competition socialism, an ideology in between traditional socialism and capitalism. Anthony Giddens, a prominent proponent of the Third Way, has publicly endorsed a modernized form of socialism within the social democracy movement. However, he argues that traditional socialist ideology, specifically referring to state socialism involving economic management and planning, is flawed. Giddens asserts that as a theory of the managed economy, it barely exists any longer.
Chancellor Olaf Scholz (2021–2025) has not explicitly stated support for Third way policies, but is widely seen as part of the moderate wing of within the SPD. During his tenure as minister of finance in the Fourth Merkel cabinet (2018–2021), Scholz prioritized not taking on new government debt and limiting public spending.
Under Renzi's secretariat, the Democratic Party took a strong stance in favour of constitutional reform and of a new electoral law on the road toward a two-party system. It is not an easy task to find the exact political trend represented by Renzi and his supporters, who have been known as Renziani. The nature of Renzi's progressivism is a matter of debate and has been linked both to liberalism and populism. According to Maria Teresa Meli of Corriere della Sera, Renzi "pursues a precise model, borrowed from the Labour Party and Bill Clinton's Democratic Party", comprising "a strange mix (for Italy) of liberal policy in the economic sphere and populism. This means that on one side he will attack the privileges of trade unions, especially of the CGIL, which defends only the already protected, while on the other he will sharply attack the vested powers, bankers, Confindustria and a certain type of capitalism".
In September 2019, Renzi announced his intention to leave the Democratic Party and create a new parliamentary group. He officially launched Italia Viva to continue the liberal and Third Way tradition within a pro-Europeanism framework, especially as represented by the French President Emmanuel Macron's La République En Marche!.
In 2002, Anthony Giddens listed problems facing the New Labour government, naming spin as the biggest failure because its damage to the party's image was difficult to rebound from. He also challenged the failure of the Millennium Dome project and Labour's inability to deal with irresponsible businesses. Giddens saw Labour's ability to marginalise the Conservative Party as a success as well its economic policy, welfare reform and certain aspects of education. Giddens criticised what he called Labour's "half-way houses", including the National Health Service and environmental and constitutional reform.
The Third Way as practised under New Labour has been criticised as being effectively a new, centre-right and neoliberal party. Some such as Glen O'Hara have argued that while containing "elements that we could term neoliberal", New Labour was more left-leaning than it is given credit for.
By the 2010s, social democratic parties that accepted Third Way politics such as triangulation and the neoliberal shift in policies such as austerity, deregulation, free trade, privatisation and welfare reforms such as workfare experienced a drastic decline as the Third Way had largely fallen out of favour in a phenomenon known as Pasokification. Scholars have linked the decline of social democratic parties to the declining number of industrial workers, greater economic prosperity of voters and a tendency for these parties to shift closer to the centre-right on economic issues, alienating their former base of supporters and voters. This decline has been matched by increased support for more left-wing and populist parties as well as Left and Green social-democratic parties that rejected neoliberal and Third Way policies.
The Third Way has been criticized as being a vague ideology with no specific commitments:
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