Politicians - Slaves Under the Invisible Hand? A Study of the Power of the Economy within the European Union

Abstract: This paper examines the impact of the economy on the political. The aim is to show that integration, in particular integration within the European Union has led to economization which has enabled a progression of the power of the economy to an extent where independent political decisions are made impossible. The development is explained through the theoretical framework of neo-functionalism, in an effort to argue the logic and arguments of neo-functionalism as an explanatory force to the development in question. The development is described in general terms, but a specific area of interest from both political and economic perspectives, corporate taxation and the harmonization thereof, is analyzed to a further degree. Harmonization of the corporation tax is not only interesting as it has been intensely debated among the Member States of the European Union; it is also of interest as taxation is a politically contentious area, and as such, a study of the area can hold explanatory power regarding other areas of politics as well. Keywords: Economization, Corporate taxation, Harmonization, European Union, Politics.