This paper analyzes how the apparently merely technical introduction of reversed qualified majority voting for the excessive deficit procedure included in the Six Pack and the Fiscal Compact shifts not only the institutional balance between the European Commission and the Member States but also the relationship between liberalization and social regulation in the EU. In bringing together institutional analysis and a political economy perspective, the paper shows how the strengthening of the Commission's discretionary decision‐making authority in a context of intergovernmental power imbalances between debtor and creditor states extends the asymmetry between market‐making and market‐correction to the area of political decision‐making. In consequence, economic and social policies are subordinated to the primacy of austerity.