Does supranational coordination erode its national basis? The case of European labour market policy and German industrial relations

Abstract

During recent decades improved supply chain management, innovation in information technology, new financial instruments, etc. have changed the economic environment for production in the EU significantly. This led to and was accompanied by increased coordination of economic policy and the use of a new mode of governance, the Open Method of Co-ordination. Simultaneously, at the national level tendencies of fragmentation in industrial relations appeared. Is this mere congruence, or is it possible to establish causal relationships? For the case of Germany the impact of coordinated European policies on industrial relations at national level is assessed. Potential consequences for supranational economic governability are discussed.