The Lessons to be taken from the European Union’s Great Depression: “The Welfare State Policies and the Clustering of the RDI Related Economic Sectors” are indispensable for the long-term economic success

Kırval, Levent
This paper focuses on the economic future of the European Union (EU) and argues that the EU’s economic problems and its recent economic slowdown are consequences of the highly deficient ‘commonly defined macro level economic governance parameters’ that bind all the member-states today. Instead of balancing the markets with the welfare state policies, the EU policy makers have gradually transformed the EU to a purely right-wing project, where the greatly uncoordinated single market is considered as a sufficient base for integration. Also, with regards to economic policymaking, the importance of industrial-sectoral clusters; particularly for improving RDI (Research & Development & Innovation) capacities; has been highly underestimated. As a result, the relatively unorganized status of the real sectors (both in the production of goods and services) has further decreased the EU’s global competitiveness. In this context, following the underlining of ‘politics’ for successful economic governance, this paper offers a ‘central planning-clustering based’ supranational economic model for the EU, which still necessitates backing by strong ‘welfare state policies.


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Citation Formats
L. Kırval, “The Lessons to be taken from the European Union’s Great Depression: “The Welfare State Policies and the Clustering of the RDI Related Economic Sectors” are indispensable for the long-term economic success,” ODTÜ Gelişme Dergisi, vol. 42, no. 3, pp. 435–456, 2015, Accessed: 00, 2020. [Online]. Available: