Labour,neo-liberalism and the conflict over economic and monetary union: a comparative analysis of British and German trade unions

Trade unions have generally been neglected in the discussion of Economic and Monetary Union (EMU) and the related neo-liberal restructuring of European social relations of production. This article helps to fill this gap through a comparison of British and German unions' position on EMU and European co-operation. It is demonstrated that there is a split between British transnational production sector unions, which support EMU and Europe-wide co-operation, and British national sector unions, which criticise the deflationary implications of EMU and focus on the national level in their policy-making efforts. In Germany, by contrast, EMU is generally accepted by unions with the exception of the construction workers' union. A division between internationally oriented and nationally oriented sector unions can only be identified in relation to the issue of Europe-wide co-operation, where the former are in favour and the latter reluctant. Importantly, however, unions in both countries strongly criticise neo-liberal economics, whether they support or oppose EMU. This may become the basis for a counter, neo-liberal strategy within the European Union.