The social dimension of the Single European Market: National versus transnational regulation

Abstract. Labour market regulation in the 1980s was subject to transnational pressures for deregulation, especially in the form of 'flexibilisation'. The 'Single European Market' project (SEM) promises further development in this direction. At the same time, proposals for a 'Social Charter' are meant to introduce a European level of regulation to counteract the SEM's potential destabilizing consequences. However, regulatory disputes and pressures contrary to convergence are likely to be intensified by the SEM. Still further uncertainty will be created by changes in Eastern Europe, as well as by greater opportunities for cross-border production shifts. Neoliberal and neocorporatist variants of the 'competition state' will be increasingly at odds at both state and Community level, with the future of 'social Europe' at stake. To the extent that market integration means a globalisation of the European economy, it may effectively disintegrate its component parts, dividing those which have more solid foundations for growth - the well-regulated, high pay/high productivity areas - from those which do not. The market logic of the Single European Market programme will manifestly contradict the efforts of the Community to avoid this future.