The Mega Capitalism and the Contradictory Perspectives of the European Union
Journal
Eurasian Studies in Business and Economics 8/2
Date Issued
2018
Author(s)
DOI
doi.org/10.1007/978-3-319-67916-7
Abstract
The key issue of this paper is the analysis of the perspectives of the
European Union under the framework of the tendencies of mainstream economics,
which leads us towards the creation of mega-capitalism (i.e. the last phase of
capitalism where the business of mega corporations is the key driver). In fact, the
EU has fallen into the trap of the economic reality of globalization and the
application of virtual neoclassical ideology. The process of structural adjustment
of the European Union into the global economy has brought to the surface two
contradictions which became differentia specifica of a protracted systemic crisis.
The first contradiction will be presented from the aspect of the core-periphery
model by describing the development strategies and structural differentiations in
the European economic area. The second contradiction of the systemic crisis refers
to the erosion of ‘the social state and national state’. Discrepancies between the
promoted values for economic and social equality and the widening economic gap
among the states make this process of erosion very obvious. This creates a dangerous
potential for opening a new chapter in European history which will be characterized
by intense processes of disintegration and fragmentation, deepening of the
connection with the elite agglomerate enclaves of mega-capitalism and reducing
the power of the national (social) state. Both processes have a common denominator
and are products of the global market capitalism and the functional integration
of mega capital. They confront the EU with the challenge to improve the competitiveness
of its economy. Thus, the perspectives of the EU regarding its catching up
with the global competitiveness will be analyzed from the point of view of this
position, and the prospects of the Euro on the global market.
European Union under the framework of the tendencies of mainstream economics,
which leads us towards the creation of mega-capitalism (i.e. the last phase of
capitalism where the business of mega corporations is the key driver). In fact, the
EU has fallen into the trap of the economic reality of globalization and the
application of virtual neoclassical ideology. The process of structural adjustment
of the European Union into the global economy has brought to the surface two
contradictions which became differentia specifica of a protracted systemic crisis.
The first contradiction will be presented from the aspect of the core-periphery
model by describing the development strategies and structural differentiations in
the European economic area. The second contradiction of the systemic crisis refers
to the erosion of ‘the social state and national state’. Discrepancies between the
promoted values for economic and social equality and the widening economic gap
among the states make this process of erosion very obvious. This creates a dangerous
potential for opening a new chapter in European history which will be characterized
by intense processes of disintegration and fragmentation, deepening of the
connection with the elite agglomerate enclaves of mega-capitalism and reducing
the power of the national (social) state. Both processes have a common denominator
and are products of the global market capitalism and the functional integration
of mega capital. They confront the EU with the challenge to improve the competitiveness
of its economy. Thus, the perspectives of the EU regarding its catching up
with the global competitiveness will be analyzed from the point of view of this
position, and the prospects of the Euro on the global market.
Subjects
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