A new era of European Integration? Governance of labour market and social policy since the sovereign debt crisis

• Published in: Comparative European politics (Houndmills, Basingstoke, England) Vol. 13; no. 1; pp. 8 - 28
• Main Authors: de la Porte, Caroline, Heins, Elke
• Format: Journal Article
• Language: English
• Published: London Palgrave Macmillan UK 01.01.2015; Palgrave Macmillan
• Subjects: Alliances; Budget deficits; Colleges & universities; Comparative Politics; Councils; Economic crisis; Education; Employment; Enforcement; European integration; European Politics; Europeanization; Expenditures; Fiscal policy; GDP; Government spending; Gross Domestic Product; International finance; International Relations; Investment policy; Labor market; Monetary unions; Objectives; Original Article; Political Science; Political Science and International Relations; Political Science and International Studies; Public Finance; Recessions; Reforms; Social policy; Social sustainability; Sovereign debt; Surveillance; institutional change; European social policy; stability and growth pact; European Integration; governance
• ISSN: 1472-4790; 1740-388X
• DOI: 10.1057/cep.2014.39

In this article we develop a typology of European Union (EU) integration to capture how, to what extent and according to which policy aims EU involvement in Member States has altered with respect to labour market and social policy and what it signifies in terms of institutional change. On this basis, we show first that new instruments – the Six-Pack, Fiscal Compact and Two-Pack – have been layered onto the existing institutional framework governing the Economic and Monetary Union (EMU). Furthermore, we show that the instruments strengthening budgetary discipline to improve the functioning of European Monetary Union have become more explicit in terms of policy objectives, particularly specifying new benchmarks to obtain fiscal discipline. They are also stricter in terms of surveillance and enforcement. Second, we show that there are initiatives to address and improve the social dimension of the EU – Europe 2020, the Social Investment Package and the Youth Guarantee – and that these have also emerged through a process of institutional layering. However, the aims around Europe 2020 and Social Investment continue to be based on the voluntary Open Method of Coordination, with comparatively weak surveillance and enforcement. In the current context, and in order to attain economic growth together with social cohesion and welfare, it is of utmost importance that EMU criteria should be altered to take account of social investments.