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This paper starts with the methodological assumption that the description of the evolution of political economy needs two distinct components: a model of pulsating growth and a model of morphogenesis. These two elements are alternating in the course of time, deteriorating growth leading to morphogenesis, which in turn consolidates structures on a qualitatively new level from which another kind of growth then can emerge. In a second part Europe's current economic and political state of affairs is discussed, using the previously developed methodology. Part 3 then depicts a manageable set of six broad topics as a first step towards a future program for a radically different political economy of Europe.
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