The Rise of the European Corporate Elite: Evidence from the network of Interlocking Directorates in 2005 and 2010

Studies of national networks of interlocking directorates across the globe reveal that since their heydays in the early 1970s, such corporate networks are in decline. During the past decade, there are indications that the cohesion between European corporate boards is actually increasing. However, the financial crisis might have well put a halt to the emerging European corporate network of board interlocks. The return of the nation state in the economic arena in response to the financial and economic crisis might have encouraged European big business to orient themselves towards the national community. Therefore this paper investigates the social organisation of Europe’s corporate elite over the past years. It compares the network of board interlocks between the largest stock listed European firms (the Eurofirst top 300) in 2005 and 2010. The findings show that by 2010, the European network of corporate board interlocks was stronger than five years before. The emerging European corporate network is increasingly becoming established. Whereas the European political elite was unable to counter the financial crisis by a common European approach, Europe is a fait accompli for the corporate elite. An analysis of the robustness of the network, its core, the central directors and the political geography reveals that corporate Europe nevertheless remains the playground of a few, heavily centred in the founding nations of the European Union