Multi-level governance in the European employment and labour market policy: a conceptual outline and some empirical evidence.

German Policy StudiesVol. 1 Nbr. 1, January 2000

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Multi-level governance in the European employment and labour market policy: a conceptual outline and some empirical evidence.

Abstract

Employment and labour market policy is a fairly new field in the European policy making process. Its complexity makes the sustained improvement of the unemployment problem difficult. This is not only because of the structural restrictions on state intervention in capitalistic economies, but also it is not easy to formulate and implement the appropriate policy owing to problems at member state level and the institutional obstacles to the EU's ability to act. Thus relatively open structures like policy networks and "soft forms" of governance are the most appropriate means to create the requisite internal complexity and allow for linkages between different levels and political systems, in order to deal with the problem adequately.

In order to investigate this topic, we would first like to present a few conceptual basics (1), and reconstruct the evolution of the European employment and labour market policy (2). In conclusion a number of hypotheses regarding the aspect of implementation in particular will be presented (3). This should allow one to gain an insight into the EU's ability to govern. We would like to point out that the following considerations result from a research project that has only just begun..

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1. "Governance of Complexity" and the European Union

1.1 Problems to govern within the dynamic multilevel system.

The first aspect that needs to be considered is the complexity that needs to be overcome in the process of governance in the EU's dynamic multi level system, particularly with regard to employment and labour market policy. The EU's dynamic multi-level system is complex. It is both diverse and unified. Complexity in this narrow "systemtheoretical" sense depends on the number of possible relations between the elements: as all elements in a system cannot be connected at the same time a selection is required to reduce the multitude of possible conditions down to one (cf. Luhmann 1978; also Simon 1962).

The different national structures in employment and labour market policy relate to this aspect of complexity. The EU's uniform governance approach with regard to employment determines how this selection is carried out. Both aspects are currently in a state of imbalance in the EU. This leads not only to the problems in finding consensus in the European decision making process, but also makes the implementation of programs difficult and leads to differences in the governance attempt. This is the primary focus of our study. We content that the differently structured policy networks in the member states are responsible for these problems. On the vertical level, this refers to the closely linked political institutions in the strict sense, while at a horizontal level, this refers to the established relations between the state and associations.

Possible general factors affecting the policy-output and the degree to which it varies are shown in the following Four-Field Matrix. Determinants central to our research project are indicated in the diagram.

Clearly the relatively changeable determining factors cited in Table 1 influence the employment and labour market policy output and the degree to which it varies in the member states. The employment crises in Europe and the change of government in important member states in the 1990s have played an important role in this regard. The role of the European Commission (in particular Jaques Delors and Jaques Santer) is not to be understated. It was responsible for establishing European employment and labour market policy as an independent policy field and the implementation of a community coordinated employment strategy for Europe.

The relatively stable d...

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