German Ordoliberalism as Agenda Setter for the Euro Crisis: Myth Trumps Reality

Ordoliberalism, Pragmatism and The Eurozone Crisis: How the German Tradition Shaped Economic Policy in Europe

“…According to this argument, German monetary policy can be characterised by a strong anti-inflationary bias rooted in the ordoliberal tradition − a view shared by Biebricher (2014, pp. 8-9), Blyth (2013, p. 141), Bonefeld (2013, p. 782), Bulmer and Paterson (2013, p. 1397), Young (2014, as well as Commun (2014, p. 27). …”

‘There's a Brand New Talk, but it's Not Very Clear’: Can the Contemporary EU Really be Characterized as Ordoliberal?

“…In distilling the varieties of ordoliberal thought, we distinguish the coexistence of two possible broad readings: one specifying a minimalist form of economic constitutionalism (prescribing the least law possible to guarantee macroeconomic stability), and the other a more maximalist form, entailing a particular type of socio‐economic policy (typically enforcing market competition and monetary discipline). We suggest that conflict between these two readings is responsible for the disagreements amongst observers of ordoliberalism, for example, if initiatives such as the European Banking Union (Siems and Schnyder ; Young ) are ordo or not. In determining whether the contemporary EU is ordo, we therefore seek evidence of both a general system of law structuring economic competition (for which we look towards the legal order(s) of the EU) and more specific economic policies aimed at fostering competition.…”

“…Thus, the state is not ‘strong’ in the sense of autocratic or overbearing, but rather is a disciplined enforcer of the ordo, particularly as it pertains to enforcing business adherence to these rules. Young (, pp. 277–278) for example states that ‘Ordoliberalism … calls for a political‐economic order ( Ordnungspolitik ) which organizes competitiveness and competitive markets in such a way to prevent private power (in the form of industrial cartels and labour unions) and public power (socialist nationalization)’.…”

“…The first consists of the legal and economic approaches of the Freiburg School (Eucken, Böhm) and the second a more sociological interpretation (Müller‐Armack, Röpke, Rüstow). Young () posits that the more sociological ‘version’ enabled those on the German left to appropriate ordoliberal ideas whilst implementing social welfarist policies, which can be considered ordoliberal only to the extent that they are not market‐distorting. The two approaches cannot be fully disentangled, but the former is the strain usually selected for analysis in the EU context (see, for example, Grossekettler ).…”

Prospects for an ordoliberal reform of the European Union

“…Germany is not only the biggest member country of the EU. Bonefeld, 2012;Brunnermeier, James, & Landau, 2016;Dullien & Guérot, 2012;Economist, 2015;Feld, Köhler, & Nientiedt, 2015;Stelzenmüller, 2015;Van Esch, 2014;Young, 2014). 1 With this regained economic weight, Germany insisted during the eurozone crisis on following the rules of the Stability and Growth Pact and on austerity measures to rescue the monetary union while other countries called for solidarity and favoured Keynesian policies.…”