Economic Constitution and the State

The role of the state in the Ordoliberal economic constitution lies at the heart of Ordoliberalism and constitutes a key difference between the theory of Ordoliberalism and other forms of liberalism. The state imposes the constitutional framework on the economy; it does not arise as natural law, but through conscious and scientific planning. The state and the economic constitution have a more multifaceted and complex relationship than first meets the eye. This is revealed through the various definitions of state, its functions, the role of independent agencies, the relationship between the economic constitution and (mass) democracy and the discussion on authoritarian liberalism. The definition of the state within the Ordoliberal economic constitution uses the concept of a strong state, which refers to a limited state that is able resist interest groups and maintain the liberal society.

A further aspect is what kind of a state is demanded or even created by the economic constitution; the economic constitution can be created by the state but arguably also that the state can be defined and even created by the economic constitution. From this perspective, economic liberties and the functioning of competition could be presented as a key legitimation for the state.