Eurokolleg 44(2001) Ways, Byways and Third Ways to a Social and Democratic Europe by Michael Dauderstädt – European integration- not very social and even less democratic – Europe’s social democracy- only half-heartedly European – Third and other ways out of Europe’s various crises – From a contest between locations to competition between policies – Hard ways to a welfare union – Democratising integration Summary 1. The long-lived dominance of liberal (and conservative) policies and the one­sided emphasis on market integration have created a deficit of democratic control in Europe, particularly over mar­ket processes. The social role of the Union – full employment, social justice – is relatively underdeveloped in spite of certain amendments, above all since the 1997 Amsterdam Treaty. The more unsatisfactory the outcome of market­led development – i.e. rising unemploy­ment, poverty and inequality – the more serious is this situation. 2. This development also reflects the relatively modest influence of European social democracy on the integration process. Its potential influence was un­dermined at the outset by strong Euro­scepticism and divergent national prio­rities, whereby there were greater diffe­rences between the parties over “natio­nal policy” issues than over “class” issu­es(employment, distribution). The more power Social-Democrats have held na­tionally, the less they have co-operated at European level. This danger is also threatening the most recent attempt at a joint strategy, the “Third Way”. 3. This joint strategy is however large­ly a fiction. For, as a result of their diffe­rent structures, the individual Member States are affected differently by Eu­rope’s common crisis of mass unem­ployment and overstretched social po­licies. National anti-crisis strategies are equally diverse. Progress was visible everywhere in the late 1990s: virtually all countries brought down their unemp­loyment figures, reduced their budget deficits and rolled back the State. The variety of methods used testifies to the scope still available for national policy­making, while at the same time exacer­bating competition in the field of social and employment policy. 4. The overall context of social-demo­cratic policies in Europe is modified by globalisation and enhanced integration Series Eurokolleg 44(2001) 1