A viable economic system requires access to energy.
That is why the Eurozone, in its present form, is struggling to survive. With no oil or gas reserves (with the exception of Norway and some countries in Eastern Europe) at its disposal, it must rely on nuclear plants (France), coal (Germany) or very expensive imports of gas/oil to satisfy its energy demands.
Free market capitalism has been tried only for a very brief period of time in history: United States, 1830 - 1860.
Since 1860 the United States (not to mention Europe) has been a mixed economy.
Capitalism = political and economic freedom
To understand why H. Spencer, J. Stuart Mill, J.M. Keynes and F.A. Hayek were actually socialists, and moreover, how the doctrine of socialism has ruled over american/european politics ever since 1880, please read:
http://www.amazon.com/Ominous-Parallels-End-Freedom-America/dp/0452011175/ref=sr_1_1?s=books&ie=UTF8&qid=1386933858&sr=1-1&keywords=ominous+parallels(chapters Kant Versus America, America Reverses Direction, Convulsion and Paralysis, A Republic If You Can Keep It)
In the official chronology, all Founding Fathers were vehemently opposed to democracy.
From this view of the subject it may be concluded that a pure democracy, by which I mean a society consisting of a small number of citizens, who assemble and administer the government in person, can admit of no cure for the mischiefs of faction. A common passion or interest will, in almost every case, be felt by a majority of the whole; a communication and concert result from the form of government itself; and there is nothing to check the inducements to sacrifice the weaker party or an obnoxious individual. Hence it is that such democracies have ever been spectacles of turbulence and contention; have ever been found incompatible with personal security or the rights of property. (J. Madison)
A democracy is nothing more than mob rule, where fifty-one percent of the people may take away the rights of the other forty-nine. (T. Jefferson)