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National liberalism is a variant of liberalism, combining nationalism with some liberal policies, especially regarding education, state-church relations and modern, efficient, bureaucratic management.
The roots of national liberalism are to be found in the 19th century, when conservative liberalism was the ideology of the political classes in most European countries and in particular those of Central Europe, then governed by monarchies. At their origin, national liberals, although pro-business, were not, however, Manchesterian free-traders, that is advocates of economic liberalism, like the mainstream liberals of the 19th century everywhere else in the world, favoring instead cooperation between the government and the national industry by moderate levels of protectionism, the establishment of preferential custom unions, subsidies for infant industry or companies considerated of strategic importance for national development, and various forms of incipient industrial planning. In German-speaking countries, national liberals were also in favour of a more authoritarian or conservative political regime because of the multiethnic character or heterogeneous nature of countries like the Austrian Empire (later officially renamed Austria-Hungary) or the newly created Germany.
National liberal parties exist today, for instance in Austria, where the ideology is one of the three traditional ideological strains in the country, and Romania, where it is at the base of the oldest and third largest political party of the country.
In 19th century Germany believers in national liberalism differed from liberal nationalists in that they believed in a more authoritarian presence in Europe and a strong Germanic Empire. Liberal nationalists, such as Max Weber, were looking towards a democratic Germany in cooperation with the other European powers.
The term 'national liberalism' was mainly used in German-speaking countries such as Germany and Austria during the 19th century, where "National-Liberal" parties were long in government. It also became very influential in nearby countries, like Romania, where German industriousness and discipline, among other things, were highly regarded.
In Austria, national liberalism has remained the basis of one of the three Lager, or ideological camps, in the country. Historically, this has been represented by the Freedom Party, but they have recently been joined by a splinter, the Alliance for the Future of Austria.
Germany's Free Democratic Party continues to have a national liberal faction, which holds a more eurosceptic position to the rest of the party.
In Romania national liberals are represented by the National Liberal Party (PNL), which was founded in 1875 and played a very prominent role in the political history of the country until the instauration of the communist regime, in late 1947. The PNL was revived after the fall of communism, in 1990, and it is now the second largest political party in the country. Since 2010 it has allied itself with the centre-left Social Democratic Party (PSD), forming the Social Liberal Union which is governing Romania as of 2013.
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