Abstract

François Perroux developed a deep and widespread criticism of neoclassical economics, particularly in its Walrasian-Paretian version, in all his writings. His critiques run along two chief lines: the kind of assumptions adopted and the crucial elements neglected. The assumptions postulated in the traditional approach (perfect competition, homo œconomicus, harmony of interests, atomism, homogeneity, pure utilitarianism, and so forth) are considered false and deceptive (1961; 1973). They represent an artificial world, which has nothing to do with reality: they are not just simplified hypotheses but fictitious elements of a totally imaginary realm. Moreover, they imply the neglect of a number of elements that – for the economist who wishes to understand the real world – are unavoidable. These elements – usually regarded as “extra-economic” factors (institutions, technique, tastes, and so forth) and therefore ignored – are the aspects Perroux considers of paramount importance.

One of the subjects more inquired into by Perroux is the European integration process, started soon after World War II, with the creation of ECSC in 1951 and Common Market in 1957: since the very beginning, François Perroux was severely critical of what – in his view – could be only an unsuccessful and detrimental project. Perroux grounds his critique on two main pillars of the European economic integration, deeply inspired to neoclassical economics: common market and free play of competition, that he contrasts with two other concepts: the poles of development and the domination effect.

According to Perroux, neoclassical assumptions on the functioning of the market and competition give rise to ideal abstractions that permeate all the Treatises (as the ECSC and Rome Treaty) and many proposals advanced for the integration process (unionist, federalist and functionalist) and, moreover, prevent any consideration and understanding of real problems, relations and effects.

Starting from these critical reflections, Perroux aims at contributing to a new economic approach, which could overcome the several limits that irremediably weaken the value of the traditional analysis and that could allow recognize the best paths for the future of Europe and the whole world.

Aim of this work is to analyse the analytical foundations and the features of Perroux’s criticism of the European integration process that is nowadays showing all its troublesome limits and dangerous outcomes but that Perroux – through his incisive and by no means ideological analysis – could clearly foresee long time ago.