Just another signpost on another important question. Again, no citations and very rough. Special thanks to Jehu for asking the question in the first place via Twitter.
To what degree does the state control capital? Originally, the state was conceived in these terms – it was the instrument of capitalist exploitation (Engels) and the executive committee of the bourgeoisie (Marx). Many other Marxist theories of the state been developed since. Bob Jessop is one the of leading Marxist authorities on the state, just as an indicator.
Leaving that point aside, if monetary or exchange control is examined then the relationship of state to capital becomes a little more clear. The United States of America enjoys a privileged position in world politics due to the USD being effectively the world reserve currency. Many smaller states use the USD as their own currency, and the USD is traded and accepted globally as legal tender even in nations where this is not the case. US economic preponderance owes a lot to this development, and the US takes a dim view to states attempting to challenge it directly (e.g. China).
The EU is another case, where the Euro acts as the effective reserve currency of Europe and is legal tender in almost every member state integrated into the internal market (the UK being a notable exception). Similar to the US, some smaller states use the Euro as their own currency. The EU differs from the US in that it is a supranational arrangement where no one state, officially, dominates the agenda. In reality, the old Continental powers of France and Germany, particularly the latter, exercise inordinate influence in the EU. The Euro developed out of the European Economic Community, set up in 1957 with the Treaty of Rome, which paved the way to the creation of a single internal market (the Eurozone).
The difference between the USD and the Euro is that the latter is a global reserve currency whereas the Euro is mainly, but not exclusively, regional. The Euro is the second most important currency in the world, which is nothing to dismiss. All other nations in the world are subject to the two reserve currencies according to various regimes – floating exchange rates and other monetary policies. In this sense, the difference between a superpower or a supranational union and a single state is significant indeed.
So what this means about the state and capital is this: in a superpower the state and capital are bound tightly together, control over monetary policy is ironclad, a cornerstone of its economic preponderance. Other states who cannot hope to match the superpower on their own must band together into supranational unions and develop a single internal market with a single currency. Lesser states who join that arrangement are subject to the influence of the larger states within, but aren’t as vulnerable as they would be on their own. The relationship between state and capital is diffused into a bureaucratic mechanism which mimics (unsatisfactorily) the arrangement of a superpower – tight monetary control. Other states, struck out on their own, have less control over their monetary policy and as a result less control over their own economies. More controversially, this melding of state and corporate power in the US and EU has distinct fascist overtones.
Consequently, a superpower and a supranational union are less subject to the whims of nominally ‘free’ market forces. However, when crisis grips their economies it effects the entire world; it threatens to collapse the global economy. This explains why Russia has made moves to construct its own Eurasian Union, though without much success, and why China seeks to construct its own international organizations which parallel the World Bank and the IMF. Both are attempts to secure greater control over their own economic conditions.
It can also be seen how the EU was an attempt by the national bourgeoisies of Europe to a) avoid another disastrous Europe-wide war, b) counter the economic preponderance of the US and thus the US bourgeoisie, and c) provide an economic bloc counter to the Warsaw Pact and the USSR. The relationship between state and capital is tightest where the greatest capital can be found. This should be possible to demonstrate in empirical terms.