The EuroAtlantic Union Review

Publisher:: Cacucci Editore
Publication date:: 2014-01-01

ISBN:: 2384-9363

Issue Number

No. 1-2014, July 2014

Latest documents

Towards a European Party System
The EuroAtlantic Union Review
The Need for a Social Market Economy
A Stable Economic System for Europe
Social Market Economy and the Future of European Unification
Europe and the world are now facing one another with two opposing visions containing a series of forces and ideas. A first perspective asserted itself in the last part of the XX century and resulted in globalisation, radical liberism (market without institutions) and relativism. A second perspective is appearing now as a convergence of new ideals, and includes a new humanism, a Social Market Economy, neo-liberalism (orderly relations between State and markets), human rights, federalism and subsidiarity. Europe can develop a new economic, social and institutional order, in this second perspective. Rules are called upon to guarantee the orderly development of this new Europe. Monetary Union has already approved rules aimed at guaranteeing the management of inflation and State deficits while respecting subsidiarity. Economic Union will be called upon to develop this approach extending it to sovereign debt and means for development.
The Social Market Economy. Incipiency and Topicality of an Economic and Social Policy for a European Community
This contribution on the economic reconstruction of post-war West Germany traces the development of ideas about economic and socio-political publicity, and their gradual absorption by mainstream politicians, officials and the general public during the period of transition between 1945 and 1949. In those years, several German think tanks, political parties and individuals gave impulse to and then shaped the development of a viable socio-political and economic model between the extremes of laissez-faire capitalism and the collectivist planned economy. In their endeavours to bring into effect their particular economic ideas - often diametrically opposed to one another - the parties of left and right stimulated not only academic and political but also public debate about the political and economic reconstruction of occupied post-war Germany. While all the various neoliberal approaches attached to the people sovereign and decisive status in the institutional economic order, and recognised the interdependence of politics, economics and the public, one particular school of economic thought outpaced the others in communicating a model of coordinated economic and social policy, namely the Social Market Economy.
Social Market Economy and the European Union. Ordnungspolitik during the Crisis
Although the notion Ordnungspolitik still remains foreign to many Europeans, it could be seen as a leitmotiv of Social Market Economy. The history of European integration has not followed Röpke’s ideal of "bottom-up integration", of liberalism and charity that begins "at home". However, European integration has to some extent been successful in terms of Ordnungspolitik. This is mainly thanks to the handover of responsibilities such as open markets and the protection of competition to largely independent bodies (such as the European Commission and the ECJ). However, in the area of fiscal and monetary policy, self-commitment via Treaties (the Stability and Growth Pact) and delegation (ECB) has proven itself to be inadequate and lacking in credibility. Thereby, the current crisis of confidence can be resolved only through more credible selfcommitment to the principles of Ordnungspolitik. Today we face the danger of confuse integration with standardisation and a politically correct view held during top-level discussions on European policy. But we should not forget Röpke’s warning that interventionist centralisation could turn into "an explosive tool for disintegration".
The Social Market Economy - Assembled in Germany, Not Made in Germany!
While the concept of the Social Market Economy has a "Made in Germany" image, "Assembled in Germany" is more correct. A "made in" claim requires that a particular product and all of its components originate from the country. This is not true for the Social Market Economy. Instead, Social Market Economics is a utility model that has incorporated lessons from both international economic history and the international history of economic thought. This article provides an overview of these lessons. It concludes that re-emphasizing the many international influences of and parallels and differences to other political-economic theories is necessary to reposition Social Market Economic thought as the only real-world alternative to the romanticisms of socialism, unfettered market liberalism, and economic macro-management.
Reinforcing Economy and Monetary Union and Welfare State Policy
This Paper raises three arguments to reinforce the economic and social aspects of the Economic and Monetary Union. First, the Welfare State is not responsible for the crisis and its effects on fiscal deficits and unemployment levels. Second, the reduction of public deficits cannot be based on more cutbacks in social policies. Third, if analysts and citizens would better perceive the incentives and costs of public policies, governmental actions should gain in efficiency, stability, equity and stimulus of economic growth. These arguments are developed from three perspectives: the Welfare State as a public expenditure, as a framework of social policies, and as a sustainable common investment. In conclusion, by opposition to the neo-liberal paradigm and its insistence on reducing the size of the State, academic debates should focus on theoretical, methodological and empirical aspects that would aid to analyze more rigorously the various effects of Social Market Economy as a model to reinforce the Economic and Monetary Union in Europe.
Social Market Economy and Its Universal Validity
The purpose of this analysis was to outline the concept, the principles and the universality of social market economy. Its elements are not only valid in Europe, but they can rather be applied worldwide. As most of the highly developed countries in the world show signs of the institutions of social market economy and the good economic performance can be traced back to these institutions, social market economy is applicable worldwide. Furthermore, the successful implementation of the principles of social market economy in countries with unstable social and economic conditions, as shown in the example of post-war Germany, underlines the universality of the concept. There is absolutely no proof that a European model is by any means more competitive or more social or more successful, than an American model. If anything can be said at all, the contrary seems more likely. The theory of the superiority of a European Economic Model is a myth.