European economies suffer a crisis of combination

Main Article Content

Noralv Veggeland


In Europe, where the financial crisis was transformed into national debt crises in several countries, the current phase of the denial cycle marked by an official policy approach predicated on the assumption that normal restored through a mix of austerity, privatization and less state involvement came through (anti-Keynes). The other view is this. Governmental investments – and financial decision-making to regulate the effective demand in national economies is based on the basic principles introduced by John Maynard Keynes in his ‘General Theory of Employment, Interest and Money (1936). The solution of the temporary crisis of the democratic capitalism might be linked to Keynes by his successors the neo-Keynesians. However, the representative democracy has become weak and fragmented, and under control of international powerful multinationals. The citizens not any longer look upon their national government as their representatives but as representatives for interest of foreign states and international organizations. Poor public politics and policy of austerity generating a crisis of combination are what come out of it.

Article Details

How to Cite
VEGGELAND, Noralv. European economies suffer a crisis of combination. Economics, Management and Sustainability, [S.l.], v. 3, n. 1, p. 65-69, apr. 2018. ISSN 2520-6303. Available at: <>. Date accessed: 17 feb. 2020. doi:


Krugman, P. (2007). The Conscience of a Liberal. New York: W.W. Norton Company.
Majone, G. (1994). The rise of the regulatory state in Europe. West European Politics, 17(3), 77-101.
Majone, G. (1997). From the positive to the regulatory state: causes and consequences of change in the mode of government. Journal of Public Policy, 17(3), 139-89.
Majone, G. (2003). The Politics of Regulation and European Regulatory Institutions. Op.cit. Hayward, J. and Menon, A. (eds.) (2003: 297-312).
Rajan, R. G. (2010). Fault Lines: How Hidden Fractures Still Threaten the World Economy. Princeton: Princeton University Press.
Streeck, W. (2012). The Burden of Depth, Le Monde Diplomatique Jan. 2012.
Veggeland, N. (2009). Taming the regulatory state: Politics and ethics. Cheltenham, UK and Northampton, MA, US: Edward Elgar Publishing.
Veggeland, N. (ed.) (2016). The Current Nordic Welfare Model, New York: Nova Science Publishers.