EU Employment Policy - Peter Nedergaard HE35 EU the...

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Peter Nedergaard – HE35 – EU, the European Market and Business Strategy Employment policy Overview: 1. Concepts concerning EU’s employment policy 2. Treaty articles about the free movement of labour 3. Economic integration and wage structures 4. The development of the EU employment policy 5. Political forces behind “hard law” 6. Political forces behind “soft law” 7. Open method of cooperation (OMC) in practice 8. OMC and its impact 9. The social dialogue 10. Models of capitalism and employment policy 11. Employment policy and business strategy 1
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1. Concepts concerning EU’s employment policy a) Social, employment, and labour market policy Social policy = includes employment policy and labour market policy PLUS social protection policy Employment policy = includes labour market policy PLUS certain economic policy of relevance to employment Labour market policy = includes wage earners rights, health and safety at work, etc. 2
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b) Negative and positive integration Negative integration = deregulatory national policies = elimination of regulations impeding the free movement of productive forces Positive integration = reregulatory policies at the EU level = new common EU policies 3
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c) “Hard” and “soft” law “Hard law” = directives, regulations, and decisions adopted by EU institutions = traditional Community Method “Soft law” = recommendations based upon reports with indicators, bench-marking, and best practice adopted by EU institutions = open method of coordination (OMC) 4
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d) Federalism (supranationalism) and intergovernmentalism Federalism (supranationalism) = the EU is (and ought to be) a multi-level political organization = strong supranational institutions (Commission, European Parliament, Court of Justice) = there is a logic of closer European integration Intergovernmentalism = the member states are (and ought to be) the most important political entities in the EU = integration is first and foremost a result of member states’ interest = there is no logic of closer European integration 5
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2. Treaty articles about the free movement of labour Treaty articles : A basic pillar of the European Union market integration: free movement of labour The economic rationale behind the treaty articles : = more optimal allocation of labour resources = better supply of labour = better exploitation of individual skills 6
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Mutual advantages from free movement of labour An advantage for both immigration and emigration countries – if and when the immigrants do get a job: 1) Emigration countries : a) eases high unemployment pressures, b) improves the balance of payment through transfer of capital to the home country, c) improves the quality of the emigrant labour force as they acquire new skills 2) Immigration countries : a) better exploitation of capital equipment, b) avoidance of bottle- necks on the labour markets 7
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Impediments to the free movement of labour Current impediments to the free movement of labour within the European Union: 1) lack of mutual recognition of diplomas and educations 2) temporary arrangements vis-à-vis new member states 8
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3. Economic integration and wage structures
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