Restoring the Social Contract in Europe: The State of Law and Democracy

Introduction

Brussels – The Constitutional Affairs Committee of the European Parliament held a high-level symposium in November on the relevance and reality of the State of Law. Legal experts, academics, and legal professionals gathered to discuss the meaning and implementation of this principle in the European Union. However, the fundamental challenge lies in the weakening of the State of Law in Europe, which threatens democracy itself.

Historical Context and the Three Pillars

Since World War II, liberal democracies have built and maintained their social contracts on three interconnected pillars: freedom, prosperity, and the State of Law. Freedom fostered innovation, the State of Law ensured equal conditions, and prosperity reinforced trust. This dynamic shaped the Cold War era and has been the primary source of legitimacy for the European project.

The Current Crisis

Today, this system is in crisis. Globalization has caused social impoverishment for many European households, with wealth concentration and the erosion of the middle class making many aspirations unattainable, especially for young people. Without shared prosperity, freedom is perceived as a farce, leading to a general sense of broken social contract and diminished faith in the State of Law.

The Role of Populism and Weak Institutions

Without shared prosperity, freedom is seen as a sham. This perception has weakened trust in the State of Law, which is tasked with limiting power. Populist politicians have capitalized on this frustration and resentment in many countries, often using their power to undermine or politicize the judicial system. Meanwhile, EU institutions have frequently appeared fragmented or weak in defending the State of Law.

The State of Law: More Than Codified Norms

The State of Law is not merely a set of codified norms; it represents the submission of force to reason, the highest expression of our quest for peaceful coexistence. Without the State of Law, power exercise becomes arbitrary, and freedom (disconnected from responsibility) is confused with desire or identity. The “right” to say anything without accountability for truth or impact is invoked, presenting itself as an attack on freedom.

Technological Advancements and Future Challenges

These destructive trends are threatened to be reinforced by technological advances. If appropriate regulations aren’t designed and implemented, artificial intelligence may enrich a few while limiting opportunities for others. Delegating governance to algorithms doesn’t revive a social contract or democratic legitimacy. Moreover, the increasingly aggressive instrumentalization of energy, data, infrastructure, and financial flows suggests that future challenges will only grow more potent.

The Allure of Authoritarian Models

In contrast, the perception of the State of Law as a problem and the authoritarian model of China as a solution is growing. According to Dan Wang’s recent book, “Breakneck: China’s Quest to Engineer the Future,” China’s disregard for legal procedures has allowed it to become an “engineering state,” capable of building mega-projects without fear, unlike the “rule-bound society” of the United States.

Europe’s Path Forward

To resist these siren calls, Europe must transform its regulatory experience into actionable capacity and offer a resilient energy architecture, robust security and defense functions, and an industrial policy that doesn’t penalize innovation. Europe should also engage in diplomacy that unites global actors around shared principles and norms. Most importantly, it must restore and rebalance the three pillars of its social contract.