ABSTRACT
Introduction This chapter reviews the responses of the EU and its member states to the 2008 economic crisis and, in light of these, evaluates the contemporary prospects for Social Europe. The chapter advances four main arguments. First, that the response of the EU and its member states during the first phase of the economic crisis – the coordinated and Keynesian rescue and stimulus packages – was a temporary one to rescue capitalism; it did not signal a fundamental shift in the nature and trajectory of the EU or its member states. Second, that the response during the second phase of the economic crisis – the adoption of austerity measures – consolidated the neo-liberal nature and trajectory of the EU and accelerated the transformation of Europe’s social models towards the market liberal form. Third, that the medium-term plans devised by the EU in the wake of the economic crisis – to expand its power over member states’ economic policymaking – amounted to a power grab. Fourth, and following from the second and third arguments, that the prospects for Social Europe in the so-called age of austerity are grim. While progressive social forces such as the far left and the greens favour the construction of radical alternatives to the EU, and while social democratic parties favour the reform of the EU, the balance of power lies with the international financial nexus, and capital more generally, which demand the dismantling of social protection systems. The chapter is divided into four main sections. The first section summarizes the response of the EU and its member states during the first phase of the economic crisis. The second section considers the response during the second phase. The third section exposes the medium-term plans developed by the EU during this period. The fourth section discusses the contemporary struggle between the forces of capital and progressive social forces and, in light of this, assesses the prospects for a Social Europe.
