European Political Economy: Labour Out, State Back In, Firm to the Fore

Much has changed in European political economy over the past 30 years, both in terms of the political economic realities and the scholarly explanations of those realities. National economic policies and policymaking have undergone major transformations, largely in response to the pressures of globalisation and Europeanisation. Such transformations have entailed significant alterations in the role of the state, the importance of business, and the power of labour. In light of these changes in the political economic realities, political economists have shifted their focus over time, first taking labour out of the equation, then bringing the state back in only to devalue it in light of globalisation and Europeanisation before putting the firm front and centre. Only recently has the state been brought back in yet again while labour has made a comeback.