A supranational regime that nationalizes social conflict: Explaining European trade unions' difficulties in politicizing European economic governance

What is it about?

Until very recently, European employers and political leaders denied the need for any coordination in industrial relations at EU level. In 2011, however, the European Parliament and the Council adopted a new European economic governance regime that makes EU member states' labor policies subject to multilateral surveillance procedures. This paper analyzes this ‘silent revolution’ from above and assesses organized labor's responses to this challenge. It shows that the EU's new governance regime does not follow the classical model of a federal state, but rather the governance structures of multinational corporations that control their local subsidiaries through the use of whipsawing tactics and coercive comparisons. European trade unions' and social movements' difficulties in politicizing European economic governance are thus best explained by the ability of the new supranational EU regime to nationalize social conflicts.

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Photo by Julian Wan on Unsplash

Photo by Julian Wan on Unsplash

Why is it important?

Our paper shows that the EU's new governance regime neither follows the classical model of a federal state nor the ordoliberal concept of “a rules based” "Wirtschaftsverfassung" (economic constitution), but rather the governance structures of multinational corporations that control their local subsidiaries through the use of whipsawing tactics, coercive comparisons and ad-hoc interventions.

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