Informed by a neo-Gramscian framework of analysis, this paper investigates the nature of neoliberal hegemony in the EU, and its consequences for the terms of enlargement. It will argue that both the deepening and enlargement of the EU are promoted by a historical bloc that seeks to establish the hegemony of transnational capital. In western Europe, social-democratic political forces, organised labour and the political forces of the peripheral countries have been incorporated into the historical bloc, albeit in a subordinated position. As a result, a precarious hegemonic constellation of ‘embedded neoliberalism’ has emerged. In contrast, the EU has exported a more ‘market-radical’ variant of neoliberalism to its new member states. This best serves the interests of transnational capital, and helps to preserve the order of'embedded neoliberalism’ within the old EU. Eastern European societies have not been in a position to question the unequal terms of enlargement. This can be explained by their specific legacies, which have led to their incorporation into the transnational historical bloc through passive revolution.
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