David Cameron’s stance at the recent European summit was a third-timer in modern British history.

... solidarity and nationalism are... at loggerheads- Sammy Meilaq

Horatio Nelson smashed Napoleon’s dream of a French-dominated Europe at Trafalgar in 1805.

Winston Churchill blocked Hitler’s onslaught in the 1940 Battle of Britain, ultimately doing away with the possibility of a German-dominated Europe.

The conflict between the UK and the German-French bloc, however, is not the only antagonism presently haunting Europe, creating economic recession and social disharmony. In fact, solidarity and nationalism are also at loggerheads. It is not only the UK that is seeking to protect its own interests, all other European states are. Solidarity between nations is giving way to nationalistic tendencies for a very good reason.

People could be reasonably expected to sacrifice some of their living standards towards the needs of other people who are suffering hardships. The people of Europe know that their contribution ultimately only ends up subsidising the banking sector and not as an investment that would actually improve the lot of those in need. As a result, most people are putting more pressure on their national politicians to protect their country’s interests only.

Another conflict that is hotting up in Europe is that between democracy and centralism.

Previous shortcomings within the democratic system had included treaties enacted without popular mandates, top officials not being directly elected by the people and the European Central Bank not being under democratic control.

Recent events have exposed the European Parliament as being of little relevance in the shadow of Angela Merkel and Nicolas Sarkozy. Referenda have been de facto prohibited. Brussels continues to increase its powers, reducing the sovereignty of the smaller nation-states while, in practice, Germany and France still call the shots. Greece and Italy have been humiliated by the imposition of governments by debtors’ prison warders, led by Lucas Papademos and Mario Monti, both of Goldman Sachs notoriety. Europe has reached a stage where democracy is incompatible with the forces of the free market.

Meanwhile, the army of the unemployed continues to swell daily by reluctant recruits. The homeless and the poor keep increasing, pensions are cut, students see few opportunities. Workers are back to pre-Rerum Novarum conditions, yearning for a living wage and some job security.

The primary concern of the European Union and the International Monetary Fund, though, is the safeguard of the banking sector, the speculators, the bondholders, the financial elite and the free market that protects their privileges.

The people do not seem to matter at all, even though the unregulated banking sector is the cause of their hardships, not a potential cure to it.

The fundamental conflict, therefore, lies between the stubborn adherence to the free market ideology when the necessity of a social market policy is now as evident as the high bright sun of an August noon.

Frantic state subsidy and political intervention to protect financial capitalism has continuously been the norm for over the last three years. This shows there is no such thing as economy. There is only political economy. Worse still, this type of intervention, at the expense of the taxpayer, has only increased economic contraction and social hardships.

The European drama will continue throughout 2012. The free market cannot remain on life support indefinitely. The most probable scenario indicates further shortfalls in democracy to sustain Brussels’ central authority, concurrent with additional social and industrial unrest.

The only sensible path available that would gradually resolve these European conflicts is a return to a social market model policy. This model, time-tested for over 40 years after World War II, showed it could ward off major economic depressions.

Europe needs a return to capital controls, fixed exchange rates, a properly regulated financial sector, democratic public control over vital sectors like banking and energy, industrial legislation ensuring job stability and a humane welfare state.

Regrettably, European leaders and institutions have no intention to alter course.

It is only by social and industrial pressure from below that progressive change may be achieved.