European(s) labor(s) Market(s)

Overview & Synopsis

Since its foundation the European Union has experienced an increase in the dispersion of its welfare systems. The goal of a Social Union, completing the economic and monetary union, is increasingly out of reach. The absence of a jointly regulated labor market is a destabilizing factor that triggers social competition and wage deflation. To avoid the risks associated with such a situation it is necessary to agree on policies aimed at returning to full employment and to choose between "neo-liberal" or "social" work sharing. The absence of short-term prospects for a complete social harmonization requires the acceptance of jointly managed of social boundaries that allow both the mobility and the effective protection of workers.