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Deepening international economic integration has combined with an upsurge of populist nationalism that seems to pose a deadly political challenge to both social democrats (tied to the national welfare state) and pro-market liberals, though it remains absolutely unclear whether “economic nationalism” is a coherent set of policies at either national or global level. This paper will explore why it has been so hard for pro-market liberals to embrace the rhetoric and policies of nationalism, using the post-soviet and East European states as its reference point.