Abstract
AbstractThis article argues that the PSPP judgment effectively buries the era of financial liberalism, which has dominated the European economic constitution for decades. It raises the curtain on a new political paradigm, which I call “integrative liberalism”. Whereas the financial crisis put financial liberalism under strain, the development since then has been contradictory, torn between state intervention and market liberalism, focused above all on buying time rather than finding a new constitutional equilibrium. Now, together with the measures adopted in response to COVID-19, the PSPP judgment paves the way for profound change. Integrative liberalism is characterized by an overall shift from the market to the state, mitigating the post-crisis insistence on austerity and conditionality. Contrary to the embedded liberalism of the post-war era, integrative liberalism operates in a corrective and reactive mode with a focus on goals and principles, lacking the emphasis on long-term planning. Like every political paradigm, integrative liberalism ushers in a new understanding of the law. It puts the emphasis on context instead of discipline, and it elevates the proportionality principle. If integrative liberalism is to succeed, however, the democratic legitimacy of the Eurosystem and its independence require serious reconsideration.
Highlights
This article argues that the PSPP judgment effectively buries the era of financial liberalism, which has dominated the European economic constitution for decades
Together with the measures adopted in response to COVID-19, the PSPP judgment paves the way for profound change
Integrative liberalism is characterized by an overall shift from the market to the state, mitigating the post-crisis insistence on austerity and conditionality
Summary
A few notes are in order on the concept of paradigms. I use paradigms as a category for describing the evolution of the welfare state. Paradigm shifts occur during periods of crisis whenever the dynamics of economic and cultural evolution exhaust the capacity of a paradigm to describe and solve relevant social problems. As Habermas explained, we “interpret individual propositions in the context of the legal corpus as a whole and within the horizon of a currently dominant preunderstanding of contemporary society To this extent, the interpretation of law is an answer to the perceived challenges of the present social situation.”[20] The parameters defining a legal paradigm include the role of courts and institutions, the role of rights, methodological approaches oscillating between form and substance, and more generally, theories of the state and of individual freedom which inform the making and the application of the law. It will provide a useful foil for the comprehension and critique of European integration at this crucial juncture
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
