Social Europe and the Eurozone Crisis: The Importance of the Balance of Class Power in Society

Abstract

The European Union (EU) is often favourably contrasted with the United States when assessments of social justice and distribution of wealth are made. In contrast to the vast inequality and widespread social deprivation in US society, European countries are characterized by expansive welfare systems. There are differences, of course, with Nordic countries having more developed systems. Nonetheless even in countries such as the UK, considered to have a similar neoliberal, market-oriented political economy as the US, there is still the guarantee of basic social rights including universal access to free health care. This European tradition has also affected European integration. When Economic and Monetary Union (EMU) was initiated in the Treaty of Maastricht in 1991, a social dimension was added to the treaty, first as an attached protocol, then as part of the treaty itself, when Britain under its first New Labour government signed up to it in 1997. The purpose of this paper is to assess the social dimension of the EU since 1991 as part of the Treaty of Maastricht. It will be investigated whether and to what extent the social dimension has been successful in providing a counterweight to the free market embodied within the and EMU. Particular emphasis will be placed on the current eurozone crisis and the way the EU as well as individual governments have responded to it.

I am grateful for comments on earlier drafts by Roland Erne, Sabina Stan, the editors of this volume, as well as the participants of the workshop ‘Quo vadis, Social Europe? The Internal Market and socio-economic issues in the context of the European crisis‘; Brussels, 6 and 7 December 2012.