Timeframe: 2010-2013
Project manager: Jörgen Hettne

How to reconcile the interest of a free market with social policy objectives is a complex and debated issue. The issue has been considered differently in different time periods and solutions have varied with different currents of ideas. Within the EU, the issue has been raised through the review of the internal market and the entry into force of the Treaty of Lisbon which defines the internal market as a social market economy and provides the Union with a binding charter of fundamental rights including social rights.

The project will address the issue of what impact this new development has on the functioning of the internal market. Does this for instance mean that a new regime can be expected where economic interests must stand back in order to give greater weight to social interests than hitherto?

When interests are balanced, it is of course essential who is the ultimate arbitrator. Today, the European Court of Justice that has this role, but it is questioned whether the court is adequate and has sufficient legitimacy to assume such responsibility. Can the judges be expected to contribute to the development of a social market economy in a consistent and adequate manner?

If the EU is now moving towards a changing market view, does this mean that the expected economic advantages that have been the basic foundation of market integration may disappear? A question which has been raised is how such a development would affect the competitiveness of the EU in the global context?

The project will continue for several years and is multi-disciplinary. In support of the project, an advisory group of prominent Swedish researchers has been set up. In addition a network of internationally recognized researchers will be created where the majority is supposed to contribute to the project in writing. The idea is that the project will result in different forms of publications and seminars and also the organization of multi-disciplinary arrangements in which several complementary perspectives meet. In 2010 three publications are expected that treat separate but complementary perspectives on the conditions and perspectives for social developments in light of the new objectives stated in the Lisbon Treaty.