This essay follows two main lines of argument. The first is that the critical issue in the current political and social crisis in the European Union is the lack of democratic representation and control. The crisis in the European Union is not one but many, shifting its many forms between financial, economic, social, and political domains.
The second line of argument might be read as a direct reversal of Friedrich von Hayek's conclusions elaborated in "The Road to Serfdom". He claimed that the state regulation of the economy and finances bears the seed of the future fall into authoritarian rule. The author takes an opposite stance, urging that the unregulated market economy and its proneness to financial hazard, the consequence of which are financial crises and major destabilisations of economies and social security of the citizens, is potentially even more direct a road towards an authoritarian rule and that the elements of such developments can already be traced in Europe.
Table of Contents
Introduction
Democratic Government
Hidden Oligarchy
European regulatory state or the Source of Permanent Crisis
Austerity
The migration crisis
Prospects
Research Objectives and Topics
This work examines the systemic crisis within the European Union, arguing that a democracy deficit and the predominance of neoliberal economic ideologies have shifted power into the hands of an unelected oligarchy, resulting in policies that favor financial interests at the expense of social stability and democratic sovereignty.
- The erosion of representative democracy through informal institutional structures.
- The rise of an "oligarchic" governance model prioritizing market freedom over popular will.
- The role of austerity measures in deepening social inequality and political distrust.
- The interplay between core-periphery dynamics and the European migration crisis.
Extract from the book
Hidden Oligarchy within EU institutional structures and the fading faith in democracy in Europe
Why would such an institutional arrangement had been chosen?
The EU's institutional arrangement changed throughout the time, and that changes were congruent with the shifts in the global political economy.
Every major shift in the logic of the economic system of accumulation and distribution always happens within the state's frame and is eventually enabled through state legislation.
The major shift, revolution even, was initiated during the 1980s when a new accumulation regime was established. That accumulation regime was to favour the financial capital over the general public.
The institutions are social relations. They reflect the shifts in the global economy's power relations through their structures as well as through the ideological concepts employed for their legitimation.
Within the political realm, the change that reflected a new dominance of the oligarchic interests in the global economy has been embedded in the conservative-liberal democracy project. It was exacerbated, perpetuated, and enforced through that frame. The importance of this unique political setting for the successful conquest of the new regime of accumulation over the Keynesian post-Bretton Woods capitalism cannot be overstated.
Summary of Chapters
Introduction: Defines the concept of a systemic, cascading crisis in the European Union and outlines the shift from post-war democratic social order to a neoliberal framework.
Democratic Government: Discusses the classical requirements of a democratic government, such as representation and the separation of powers, and highlights how these have been eroded.
Hidden Oligarchy: Analyzes how the political and economic structure has evolved to favor vested financial interests, creating an "oligarchy" that operates beyond public control.
European regulatory state or the Source of Permanent Crisis: Examines how unelected EU institutions and technocratic committees circumvent democratic accountability in financial policymaking.
Austerity: Explores the historical and theoretical roots of austerity and its detrimental impact on living standards and social equality in Europe.
The migration crisis: Investigates the dynamics between the European core and periphery, particularly how migration impacts labor markets and exacerbates political stability issues.
Prospects: Concludes that the EU must undergo a fundamental democratic restructuring to regain the trust of its constituencies and reverse the trend toward technocratic "void" governance.
Keywords
European Union, Democracy Deficit, Neoliberalism, Austerity, Financial Crisis, Oligarchy, Migration Crisis, Institutionalism, Populism, Economic Policy, Sovereignty, Regulatory State, Representative Democracy, Social Stability, Political Economy.
Frequently Asked Questions
What is the primary focus of this work?
The book analyzes the ongoing systemic crises in the European Union, positing that they are not isolated events but a cascading effect of neoliberal institutional design and a lack of democratic accountability.
What are the central themes of the analysis?
The core themes include the erosion of democratic institutions, the rise of an oligarchic influence in policymaking, the harmful effects of austerity, and the political complexities surrounding migration and labor economics in Europe.
What is the primary research goal?
The goal is to demonstrate how the current governance model of the EU deliberately insulates decision-making from popular control, thereby subverting democratic principles and fueling political instability.
Which scientific methods are applied?
The author employs a critical political and social analysis, utilizing historical institutionalism and economic theory to explain the divergence between stated democratic values and actual legislative outcomes in the EU.
What topics are covered in the main body?
The book covers the evolution of the EU's institutional framework, the dominance of behavioral and neoclassical economic theories, the history of austerity policies, and the political impact of population drain and migration between the European core and periphery.
Which keywords best characterize the research?
Key terms include democracy deficit, cascading crisis, neoliberalism, austerity, financial deregulation, and oligarchy.
How does the author define the "democracy deficit" in the EU context?
The author defines it as a structural denial of democracy, where legislative power is concentrated in unelected bodies like the European Commission, effectively removing the European Parliament from meaningful policy control.
What role does the "market hypothesis" play in the author's argument?
The author identifies the market hypothesis as the ideological engine that links political outcomes directly to economic freedom, prioritizing the needs of financial capital over social welfare and democratic majority rule.
How does the migration crisis illustrate the core-periphery divide?
The author argues that migration policies and the influx of labor are exploited by the core EU countries as a source of cheap labor, while placing the logistical and political burden of these shifts onto the peripheral states, often intensifying their own economic and social vulnerabilities.
- Quote paper
- Dunja Larise (Author), 2021, Democracy and Cascading Crisis in European Union, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1289051
