We discuss non-perturbative contributions to the three-dimensional 1-loop e
ffective potential of the electroweak theory at high temperatures in the fr
amework of the stochastic vacuum model. It assumes a gauge-field background
with Gaussian correlations which leads to confinement. The instability of
[F-2] = 0 in Yang-Mills theory appears for small Higgs expectation value [p
hi(2)] in an IR regularized form. The gauge-boson propagator obtains a posi
tive momentum-dependent "diamagnetic" effective (mass)(2) due to confinemen
t effects and a negative one due to ''paramagnetic" spin-spin interactions
which are related to the [F-2] = 0 instability. Numerical evaluation of an
approximate effective potential containing these masses shows qualitatively
the fading away of the first-order phase transition with increasing Higgs
mass which was observed in lattice calculations. The crossover point can be
roughly determined postulating that the effective phi(4) and phi(2) terms
vanish there. (C) 1999 Elsevier Science B.V.