This article draws on the work of Poulantzas to argue that European social democracy is in crisis because European integration since the 1980s has been articulated within a relationship of structural subordination to US-led globalised financial capital, to which European capital has itself increasingly gravitated. This has also been the determining parameter of the state-as-social-relation, and contradicts the post-war welfare settlement. Against this backdrop, Europe has struggled to rearticulate a new social compromise and politics of social mediation. The attendant crisis of legitimisation has primarily benefited right-wing populism, which does not augur well for the health of Europe's synthesis of capitalism with democracy.
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