The historical origins of the German model of ‘coordinated market capitalism’ was premised on the limited mobility of production factors across national borders, a situation that no longer exists in Europe. The domestic politics of class compromise that constituted the domestic regime has been replaced by international diplomacy of market making at the EU level, ruling out the drive toward accommodating conflicting political interests in the national arena.
This lecture asks whether market modifying and market correcting political intervention in the economy, particularly labour market, industrial relations and employment policy, can only take place within nation state. It probes whether Europeanisation in general, and EMU in particular, favours national regimes that are constructed around a liberal market model. If so, what does this mean for the future of national industrial relations and wage setting systems in the Eurozone?