Are Labour Market Reforms the Answer to Post-Euro Crisis Management? Reflections on Germany’s Hartz Reforms
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In its 2015 official report on growth and employment, the European Commission indicates that the EU economy would be characterized by slow growth and high but stable unemployment. The Commission therefore suggests that reforms supporting well-functioning labour markets must take and continue in order to effectively reduce unemployment. Labour market reforms, following austerity and fiscal discipline, seemingly become another recipe for recovering the eurozone economy in the EU’s post-euro crisis management. With both monetary and fiscal policies reaching their limits and unemployment still at high levels in some EU members, labour market reforms are expected to be the major, if not the last, resort that policy-makers can turn to. As the European Central Bank (ECB) indicates in its report (2012: 10), a comprehensive strategy of labour market reforms is key to solid economic recovery.
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