Between Dogmatism and Pragmatism: Economic Order Policy in the Context of the Eurozone Crisis

This paper examines the relationship between the theoretical-normative framework of ordoliberalism and the pragmatic application of economic order policy (Ordnungspolitik) in the context of financial and economic crisis management within the European Union after 2008. The authors argue that, although ordoliberalism significantly shaped the institutional architecture of the EU and the Economic and Monetary Union (EMU), in practice Germany, guided by the principles of Ordnungspolitik, adopted a flexible approach that accommodated the evolving realities of the crisis. The analysis differentiates ordoliberalism as a coherent theoretical construct from Ordnungspolitik as a pragmatic instrument of governance, which also incorporates elements of the Social Market Economy (SME). The findings demonstrate that the management of the Eurozone crisis, despite rhetorical adherence to fiscal stability and discipline, was marked by pragmatism and a departure from rigid ordoliberal dogmatism, as reflected in the creation of the European Stability Mechanism (ESM), the adoption of the Six-Pack and Two-Pack frameworks, and the approval of various assistance programs and discretionary measures. The study emphasizes the necessity for further inquiry into the adaptability of economic order models within the evolving framework of European integration, as well as into the transformation of German economic thought in response to systemic crises.