ABSTRACT
Ordoliberal economics could be looked at as a special part of the general theory of institutions. The subsidiarity principle demands new institutional concepts of integration in the European Union (EU). The basic idea behind ordoliberalism is to promote a strong state in order to effectively set the institutional environment in which the market process should be framed. Ordoliberalism implies the idea of creating ‘good rules’ for policymakers and economic agents: rules rather than discretion. Ordoliberal politico-economic approaches are cognate to the theory of federalism, which says that the subsidiarity principle is regarded as a rule for establishing responsibility within a multitiered state structure. Increasing centralization and harmonization activities of the EU Community’s bodies which run counter to the principle of subsidiarity are taking hold of more and more areas of policy – even though it is the fundamental principle for action in the Union.
