Morality in the Service of Mercantilism: Ordoliberalism, the German
National Interest and European Economic Governance in the Eurozone
Crisis and Beyond
Abstract
Numerous studies attribute the Eurozone crisis and the failure to
resolve it to German elites’ and voters’ fealty to Ordoliberalism. This
interpretation is shared by the otherwise antagonistic historical
institutionalist and ideational schools of comparative political
economy, which both hold that it was German policy institutions’ or
leaders’ ordoliberal principles that brought them to blame the crisis in
the Eurozone’s periphery on fiscal profligacy and to intervene “too
little, too late” for fear of violating Ordoliberalism’s central
liability principle. This article posits that this ordoliberal
interpretive and prescriptive framework is inadequate to explain
Germany’s response to the Eurozone crisis. Deploying a neoclassical
realist framework, the article argues that Ordoliberalism was pursued as
a strategic idea when it was consistent with core German economic and
political interests, notably the preservation of the country’s
export-led growth model and leadership of the European Union (EU), as
well as the principal institutions, such as the Single Market and
European Monetary Union (EMU), advancing these interests. Conversely,
when a strict application of its principles ran counter to the latter,
German decisionmakers demurred from pursuing Ordoliberalism. The article
considers the political implications of Germany’s selective pursuit of
Ordoliberalism for the EU. It concludes that this strategy may be
undermining the functional basis and political legitimacy of German
hegemonic governance in Europe.