EUROS AND EUROPEANS: MONETARY INTEGRATION AND THE EUROPEAN MODEL OF SOCIETY; ED. BY ANDREW MARTIN

Economic and Monetary Union (EMU) is one of the most important developments in modern European politics. Building on two decades of monetary integration it transfers monetary policy, a core function of the modern state, to an independent European Central Bank (ECB) and limits member states' fiscal policy discretion. The ECB insists that growth and employment depend on 'flexibilizing' Europe's labor markets through deep reforms of the social policies and employment relations which comprise the 'European social model'. Member states retain authority over these areas at the heart of national politics, but how will EMU affect the domestic politics of institutional change? Will EMU reinforce de-regulation and retrenchment or will it facilitate reforms that maintain the protections against economic insecurity, inequality, and unilateral employer power the European model has provided? To address these questions, a transatlantic team of leading experts analyzes the evolving tensions between monetary integration and national social policies. Cover......Page 1 Half-title......Page 3 Title......Page 5 Copyright......Page 6 Dedication......Page 7 Contents......Page 9 Preface......Page 11 Contributors......Page 13 1 Introduction: EMU and the European social model......Page 15 1 Europe and the politics of monetary integration......Page 17 2 The European social model and its national variants......Page 25 3 Euros and Europeans......Page 30 2 The EMU macroeconomic policy regime and the European social model......Page 34 1 The EMU macroeconomic policy regime......Page 35 2 Explaining unemployment......Page 41 3 Conclusion......Page 62 3 Shaping a polity in an economic and monetary union: the EU in comparative perspective......Page 65 1 EMU: beyond monetary policy-making to economic policy coordination......Page 67 Public finance......Page 69 National politics and public finance......Page 71 Comparison......Page 73 Labor market reform in the EU......Page 74 The ECB and labor markets......Page 75 The Commission and ECOFIN......Page 77 Labor flexibility vs. the single market program......Page 78 National choices and labor market flexibility......Page 79 A pro-flexibility coalition......Page 82 US labor regulation......Page 83 3 Conclusion......Page 86 4 Monetary integration and the French model......Page 90 1 Monetary integration and the last gasp of French Keynesianism......Page 91 Shifting economic and foreign policy: the “Europe option”......Page 92 The French social model challenged: the EMS period......Page 94 Monetary integration, employment relations, and the labor market......Page 95 2 The 1990s: EMU shapes French domestic politics......Page 102 From Mitterrand to Chirac......Page 103 Gallic third ways and beyond......Page 107 3 Conclusions......Page 114 5 EMU and German welfare capitalism......Page 117 1 Social capitalism in Germany......Page 118 Beyond the “golden age”: slow growth and smooth consolidation, 1973–1989......Page 121 Unification and EMU negotiations......Page 127 Unification and its consequences: promises vs. reality......Page 129 3 Between continuity and change: EMU and the red–green coalition, 1998–2002......Page 132 4 Conclusion: new irony in German history?......Page 136 6 Maastricht to modernization: EMU and the Italian social state......Page 140 The macroeconomic policy regime......Page 141 The social model......Page 142 The macroeconomic policy regime......Page 147 Employment relations: rediscovering concertation?......Page 150 Restructuring the welfare state......Page 156 3 Conclusion: EMU and political modernization......Page 160 Appendix......Page 163 7 Constraint or motor? Monetary integration and the construction of a social model in Spain......Page 164 1 The Spanish social model ex ante......Page 166 2 The puzzle of Spanish participation in EMU......Page 168 3 Monetary union, welfare reform, and collective bargaining......Page 176 4 Monetary union and social regulation in Spain: some concluding thoughts......Page 183 8 The Netherlands: monetary integration and the Polder model......Page 188 1 The Dutch labor regime from pacification to Poler model......Page 189 2 Explaining the “velvet transformation”......Page 197 3 Monetary integration in an old European state......Page 203 4 Conclusions: transferring the Dutch case?......Page 212 9 Belgium: monetary integration and precarious federalism......Page 215 1 From postwar Social Pact to EMU......Page 217 From the 1982 devaluation to the 1990 link to the D-mark......Page 219 2 Entering EMU......Page 221 From productivity to competitiveness......Page 226 Budget deficits and social security......Page 230 Exerting influence at the European level......Page 234 4 Conclusions......Page 236 10 The political dynamics of external empowerment: the emergence of EMU and the challenge to the European social model......Page 240 1 The conceptualization of the vincolo esterno......Page 241 2 The use of EMU as a vincolo esterno: pre-Maastricht......Page 243 3 The use of EMU as a vincolo esterno: post-Maastricht social models......Page 249 Italy......Page 250 Spain......Page 251 Greece......Page 252 France......Page 253 Germany......Page 254 Sweden......Page 255 Finland......Page 256 4 Conclusions......Page 259 1 Awelfare state world of path-dependent, but not predetermined, solutions......Page 262 2 The fine structures of the European social model......Page 266 3 Regime-specific problems and pressures......Page 271 Reform agendas in EMU......Page 274 4 The European social policy agenda......Page 288 12 Industrial relations in EMU: are renationalization and Europeanization two sides of the same coin?......Page 292 1 Implications of EMU for national industrial relations systems......Page 294 General trends in Western Europe......Page 296 Adjusting to EMU: cross-national distinctions and commonalities......Page 299 National flexibility and European coordination: an irresolvable contradiction?......Page 312 Different pathways to the Europeanization of collective bargaining......Page 314 A two-level model of soft European wage coordination in the making?......Page 316 3 Conclusions......Page 320 13 Conclusions......Page 323 1 Responding to monetary integration......Page 325 Timing......Page 326 Common patterns?......Page 329 2 EU social policy: promises and practices......Page 335 3 Resilience, resistance, adaptation?......Page 339 Enlargement?......Page 341 Whither the European model of society?......Page 342 References......Page 345 Index of names......Page 384 Index of subjects......Page 390 The Impact Of European Monetary Integration On Social Policies & Employment Relations Is Discussed By The Contributors To This Volume. Will The Emu Reinforce Deregulation & Retrenchment, Or Will It Facilitate Reforms That Maintain The Protections Againsteconomic Insecurity, Inequality & Unilateral Employer Power?. Introduction : Emu And The European Social Model / Andrew Martin And George Ross -- The Emu Macroeconomic Policy Regime And The European Social Model / Andrew Martin -- Shaping A Polity In An Economic And Monetary Union : The Eu In Comparative Perspective / Alberta M. Sbragia -- Monetary Integration And The French Model / George Ross -- Emu And German Welfare Capitalism / Nico A. Siegel -- Maastricht To Modernization : Emu And The Italian Social State / Vincent Della Sala -- Constraint Or Motor? Monetary Integration And The Construction Of A Social Model In Spain / Sofía A. Pérez -- The Netherlands : Monetary Integration And The Polder Model / Jos De Beus -- Belgium : Monetary Integration And Precarious Federalism / Philippe Pochet -- The Political Dynamics Of External Empowerment : The Emergence Of Emu And The Challenge To The European Social Model / Kevin Featherstone -- Welfare Reform In The Shadow Of Emu / Anton Hemerijck And Maurizio Ferrera -- Industrial Relations In Emu : Are Renationalization And Europeanization Two Sides Of The Same Coin? / Jon Erik Dølvik -- Conclusions / Andrew Martin And George Ross. Edited By Andrew Martin And George Ross. Includes Bibliographical References (p. 331-369) And Indexes.

The creation of the Economic and Monetary Union (EMU) marks a leap forward in European integration. Authority over monetary policy has moved from member states to the European Central Bank, an independent, supranational institution. This volume examines the ways in which the "European model of society", characterized by bargaining between "social partners"and relatively high taxes and transfers, has been affected by EMU. The book discusses the nature of the European model and explores change across Europe, showing how national governments have been constrained, even in their social and industrial policies.

Economic and Monetary Union (EMU) is a leap forward in European integration, removing authority over monetary policy from nation states. This volume examines the ways in which the 'European model of society' has been affected by EMU, showing how national governments have been constrained in their social and industrial policies