The result of a four-year long comparative research study centered at the European University Institute in Florence, Italy, and financed by the European Commission's Sixth Framework Programme, Social Pacts in Europe presents the first full-length theoretical and comparative empirical study of new social pacts in Europe. Its aim is to bring the level of sophistication achieved in an earlier literature on neo-corporatism to the more contemporary phenomenon of 'social pacting'. The book brings a wide range of complementary theories to bear on the emergence, evolution and institutionalization of pacts, compares systematically a wide range of cases across Europe, and provides in-depth studies of Ireland, Italy, Portugal, Spain, the Netherlands, and Slovenia. The book contributes to the scholarly debate on economic adjustment and institutional change in European capitalism by focusing on three inter-related questions: (i) what explains national variation in reliance on social pacts; (ii) what determines the outcomes of individual pact negotiations; and (iii) under what conditions are pacts repeated and become regular features of socio-economic governance? The book's theoretical innovations include a novel application of fuzzy-set Qualitative Comparative Analysis (fs/QCA) to help explain national differences in social pact adoption; the application of a game theoretic approach to explain social pact emergence; and a reinterpretation of traditional neo-corporatist and new institutionalist theory to help understand social pact consolidation and institutionalization.

Comprises 12 papers which analyse national experiences and the theoretical implications of the conclusion of social pacts in the European Union in the 1990s.

Politicians, economists, and social theorists tend to agree that globalization and neo-liberal economic policy have contributed to the decline of the social compacts underlying traditional European welfare states. Recently, however, social pacts have demonstrated an impressive resurgence, as governments across Europe facing necessary economic policy adjustments have chosen to view trade unions as vital negotiating partners rather than adversaries. Wage Setting, Social Pacts, and the Euro offers a theoretical understanding of the forces that have led to this new understanding, and of the challenges that increasing monetary integration will continue to pose.

This article argues that, despite pessimistic forecasts for their future, social pacts remain a central element of industrial relations across many member states of the European Union. Social pacts provide a mechanism of pragmatic adaptation to the trilemma of reconciling market integration, intergovernmentalism and democratic accountability. In addition, recent developments in the general direction of social dialogue and social pacts, in some of the new member states, indicate a learning process to enable economic catch-up while engaging in institutional innovation. Finally, the article argues that social pacts remain important in ensuring a voice for labour across Europe.

This book provides a comparative assessment of social pacts between governments, labor unions and employer organizations in Western Europe. Using a dataset covering 16 European countries, as well as eight in-depth country case studies, the authors argue that governments’ choice of social pacts or legislation is less influenced by economic problems, but is strongly influenced by electoral competition.

In this book leading European economists examine the current status of social pacts and their future. Particular focus is placed on the role of trade unions, and the positive role they can play for economic and social stability by agreeing to set wages on the basis of a target rate of inflation. As the European Union expands and social change accelerates, this insightful book will be of interest to all concerned with social and economic developments across Europe.