Wolfgang Streeck in Jacobin:
You’ve argued in recent years that the trajectory of “democratic capitalism” in Europe has increasingly been in the direction of a social and economic model that prioritizes the imperatives of the market and of business profitability over the requirements of democratic equality and social solidarity. Can you talk a little about how that process has unfolded, and how the eurozone crisis that broke out after 2008 fits into this picture?
Democracy under capitalism is democracy to the extent that it corrects the outcomes of markets in an egalitarian direction. Economic liberalization disconnects democracy from the economy — makes it run dry, as it were. The result is what is called post-democracy: democratic politics as a mass spectacle, as part of the entertainment industry.
One way democracy is decoupled from the economy is by a transfer of economic policy out of the hands of national parliaments and governments to “independent” institutions such as central banks, summit meetings like the European Council, and international organizations such as the International Monetary Fund (IMF).
The euro, as instituted by the Maastricht Treaty, has in this way de-democratized (although by no means depoliticized) monetary and economic policy-making in its member states. Substantively, it has imposed a hard-currency policy on the whole of Euroland, one under which some countries, like Germany, can prosper while many others cannot.
More here.