The EuroAtlantic Union Review

Cacucci Editore
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  • 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.

  • The Exit from the Sovereign Debt Crisis: National Policies, European Reforms and Monetary Policy
  • The European Enterprise as a Key Player in the European Economic Model. A Historical Perspective

    The enterprise is a key player in the European economic model. An analysis in historical perspective can contribute to better define its identity, helping the implementation of effectual industrial policies during the current phase of economic crisis and political divergences within the Union. This article presents the results of a collective research, still in progress, aiming to identify the native characters - a kind of genetic code - of the European enterprise since the end of 19th century. Despite the differences between the various models of capitalism, we attempt to verify the existence of at least four genetic characters common to the sample of firms studied in major European countries. In our research hypothesis, the "genetic code" of European enterprise is influenced by at least one or more of these four elements: a) Contractual cooperation, cartels and concerted practices; b) Personal or family business, determining the diffusion and relevance of small and medium firms; c) Active role of substitutive factors: the State and the bank; d) Strong influence of the workers and their organization.

  • Social Market Economy and Economic Democracy: the Trade Union's Role

    The paper discusses the role that the trade union can play in the construction of the new European Social Market Economy, widening the frontiers of democracy. In the current situation of "social dismantling", it is necessary in fact to increase the number of the protagonists of the political, economic, and social life, emphasising the principle of the common good and its cultural values. In this framework, according to the Author, the trade union must take full responsibility for directing, controlling and managing economic and social choices, shifting from the "culture of consequences" to the "culture of project", in order to contribute to a good, or at least decent, life expectancy for everybody.

  • The Teachings of the Action Committee for the United States of Europe (Monnet Committee)

    The difficulties as well as the successes that the EU faces today are not different from those of the past. They stem, as in the past decades of the Community, from nationalistic attitudes, national self interest, over cautious behaviors and, above all, from various fears: fear of the future, fear of one’s neighbor, suspicion of technological advances and a general feeling of insecurity. However, for a quarter of a century, there was a man who worked behind the European scene with the aim of surmounting all such hurdles. That man was Jean Monnet. He was permanently involved in the gradual construction of a united Europe. It was commonplace to consider that the so-called "Monnet method" could contribute to resolve most of the disputes and disagreements inherent in such a process. The "method" was based on dealing with all the various problems off the visible political stage by bringing together, without prejudice, players drawn from all horizons of public life. Politicians, trade-unionists, decision makers of all origins met together in the Action Committee for the United Sates of Europe with the sole purpose of identifying ways and means to meet the general interest. However, it was, above all, the personal commitment and determination of one man that made things move. To-day’s European rulers need the same driving force to ensure the EU continues to move forward every day, as it does imperceptibly in spite of the apparent difficulties.

  • Social Services of General Interest (SSGI) and the Sustainability of European Social Model

    This text analyses the features of SSIG within the broad category of SIG. Since no biding definition can be found either in primary or secondary EU law, social services have to be considered in accordance to the principles, aims and organization forms they are delivered. It is then analysed the legal framework and the role of SSGI in fulfilling territorial, social and economic cohesion, high level of employment, equality, social inclusion and economic growth. The social dimension of the EU integration process reinforced by the Treaty of Lisbon determines, in our view, an increasing relevance of SSIG and the adjustment of EU law to their specificity. As many European countries face serious financial constraints, reforming welfare state becomes imperative, but only reforms based on social investment policies and social consensus will create a trust environment necessary to guarantee the preservation and sustainability of Europe’s social model.

  • No Virtute like Necessity? Cooperation between the Poles of National Sovereignity and European Army - Some Thoughts for a Systemic Approach

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