A curtain of gloom is descending on the continent: Capitalism, democracy and Europe

Abstract

AbstractThe democratic and social states of the EU (together with other OECD countries) have transformed capitalism. This was also due not only to national but also to the impressive advances of transnational constitutionalism. Great parts of the means of production have been socialised or partly socialised. Finally, the democratic and social states of Europe did not turn to socialism, but became a new formation of democracy with socialist characteristics, and that for the time being was the only formation of modern democracy that ever worked. However, democratic social welfare capitalism has suffered from two problems: secular stagnation and horizontal exclusion. Aggressive neoliberalism, politically and theoretically well prepared, took its chance and changed the direction of the evolution of world society. The last 40 years witnessed a great transformation from full‐fledged market‐controlling democracy to market‐conforming post‐democracy. However, in Europe, political alternatives between social and neoliberal models remained open until the establishment of a common currency without legislator and government, which had the unintended effect of excluding all alternatives to neoliberalism once it was established under the rule of competition law that became the substantial (factual) constitution of Europe. The global economic crisis of 2008 caused a state of permanent crises in Europe, which at present are managed by an ever more exceptional regime of technocrats and experts. It would seem that either democracy comes to an end in Europe and in all of its Member States or Europe becomes the first transnational regime that is not less but more democratic and social than its former Member States.