The paper discusses the idea of the social market, developed by Karl Polanyi, among others, and by German ordoliberalism, and implemented by Western welfare states. Facing globalized competition the welfare state seems to be defensive and the idea of the free market overpowers that of the social market. Paradoxically, the European Union as the alliance of national welfare states seems to be walking down the path of economic liberalism. An alternative direction for the EU, propagated by social liberals, is democratization, collaboration and dialogue which seem to have produced good results in Scandinavian member states.
The paper discusses the idea of the social market, developed by Karl Polanyi, among others, and by German ordoliberalism, and implemented by Western welfare states. Facing globalized competition the welfare state seems to be defensive and the idea of the free market overpowers that of the social market. Paradoxically, the European Union as the alliance of national welfare states seems to be walking down the path of economic liberalism. An alternative direction for the EU, propagated by social liberals, is democratization, collaboration and dialogue which seem to have produced good results in Scandinavian member states.