This article develops an assessment of the present-day European crisis management, referring to Wolfgang Streeck’s recent interpretation of the European ‘consolidation state’ as an attempt to install a ‘Hayekian’ regime of liberalized transnational markets. This article arrives at a diagnosis different from Streeck’s: if there has been a ‘Hayekian’ regime, it had already developed after the collapse of the Bretton Woods system in 1973 and the subsequent dismantling of capital controls in the USA and Europe. As it appeared in the financial crisis of 2007–2008, the ultimate practical test of the Hayekian vision was dramatically negative. European crisis management, as it is still largely occupied with the imperative to maintain the solvency of troubled Euro states vis-à-vis the capital markets, is not following a Hayekian script. Rather, it is confronted with the challenge of removing the debris of the collapse of the former Hayekian regime, taking the form of zombie banks and large uncovered capital claims. To master this challenge, not only intact European institutions and transnational cooperation in Europe would be required, but also much more democratic pressure from below.