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How the Eurozone disempowers trade unions : the political economy of competitive internal devaluation

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2022

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Tassinari, Arianna

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Socio-Economic Review. Oxford University Press. 2022, 20(1), pp. 323-350. ISSN 1475-1461. eISSN 1475-147X. Available under: doi: 10.1093/ser/mwaa021

Zusammenfassung

The marginalization of trade unions was a notable feature of the sovereign debt crisis in the Eurozone periphery. However, governments have recently imposed liberalizing reforms against union protests in the Eurozone core too. We argue that organized labour loses influence across the core-periphery divide because the ‘new economic governance’ puts national governments under enhanced pressure to compete against each other on wage and labour market flexibility—a process known as competitive internal devaluation. The article illustrates this argument through comparative quantitative indicators of liberalization and qualitative process-tracing in three core countries. Whereas Germany’s outstanding competitiveness position allowed its unions to extract significant concessions, their counterparts in France and Finland faced unprecedented defeats from governments aiming to restore economic growth by closing down the competitiveness gap to Germany. Our findings highlight the class power implications of the Eurozone’s reliance on the labour market as the main economic adjustment variable.

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ISO 690RATHGEB, Philip, Arianna TASSINARI, 2022. How the Eurozone disempowers trade unions : the political economy of competitive internal devaluation. In: Socio-Economic Review. Oxford University Press. 2022, 20(1), pp. 323-350. ISSN 1475-1461. eISSN 1475-147X. Available under: doi: 10.1093/ser/mwaa021
BibTex
@article{Rathgeb2022-05-02Euroz-50162,
  year={2022},
  doi={10.1093/ser/mwaa021},
  title={How the Eurozone disempowers trade unions : the political economy of competitive internal devaluation},
  number={1},
  volume={20},
  issn={1475-1461},
  journal={Socio-Economic Review},
  pages={323--350},
  author={Rathgeb, Philip and Tassinari, Arianna}
}
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