Guns, Butter and Karl Polanyi: Securing Europe in the post-neoliberal world

Abstract

Trump 2.0 has contested and sought to upturn the so-called liberal international order. Within Europe this entailed leveraging geoeconomic dependence to force NATO members to publicly commit to spending 5% of GDP on defence and the EU into an asymmetrical trade deal. Europe is thus undergoing a guns versus butter debate that threatens the social contract and the solvency of Europe. Taking stock of the scramble across Europe to keep NATO keeping on - and drawing upon research that explores the transnational and economic roots of the rise of the far right - this essay argues that to effectively respond to Trump 2.0 and stem tide of anti-democratic currents will require rethinking contemporary EU economic doxa – imperfectly captured by the term neoliberalism. Such a reckoning should involve a systematic reconsideration of how far and how deep markets and market logics should be institutionalised within European societies. In short, Europe should seek to proactively shape the emerging post-neoliberal trend to seek to ensure that what comes next retains the existing order’s stated commitments to democracy, tolerance, and human dignity. Conversely, failure to rethink Europe’s commitment to neoliberalism risks strengthening those that are convinced the status quo embodies little worth salvaging.