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12/7/14

European Integration: Why Brussels Needs To Read Karl Polanyi - by Kurt Huebner

The project of European integration is going to run into walls. In political terms, it has become evident that its active as well as its passive support is decreasing. To some degree this loss in faith is tied to the social implications of years of austerity policies that were imposed to many nation-states in the EU. 

Persistently high rates of unemployment and a reduction of real household incomes are no reasons to be supportive of a project that is widely seen as elite-driven as well as mainly in the interest of export-sectors.
Electorates in relatively better-off member states, on tbe other side, are no longer willing to act as guarantors of crisis-ridden neighbors.

 Moreover, and at least as relevant, is the rise of political parties and movements across Europe that see the return to the nation state as a recipe for all kinds of problems, also for the ones that are not in any way tied to the EU. In economic terms, the project of European Integration is facing a long-run period of stagnation or at least of very low economic growth. 

Neither Brussels nor the member states seem to be prepared to work against such a path or to be prepared for dealing with the underlying forces of shifty towards a low growth path. The investment initiative of the Juncker Commission can, at best, be a drop in an empty bucket. In terms of legitimacy, 

European Integration has lost a lot of its appeal, and this is not only reflected in decreasing participation rates in European elections but more so in the emerging new form of economic governance that contradicts basic rules of democratic self-control by potentially taking away significant political sovereignty in the budget process.

Why Brussels Needs To Read Karl Polanyi

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