The EU ‘dimensions’ in economic policy-making at the domestic level: Evidence from labour market reform in Spain

Abstract:

The article first argues that the influence of Economic and Monetary Union (EMU) policy, the goals of 'right-wing' party members and the demands of economic elites are interrelated in explaining the pursuit of labour market deregulation by the Spanish socialist government in 1994. It then provides lessons for Spanish policy-making, potentially applicable to other EU states. It argues that even though EMU and 'negative' integration policies determine the broad frame of domestic choices, domestic political and economic actors principally set the specific policy details. Thus, 'Europeanisation' of domestic politics is more complex than the literature suggests. While the EU exercises Lukes' second dimension of power which shapes the domestic-level policy-making agenda, this nevertheless entrenches the participation of specific domestic actors who subsequently exercise Lukes' third dimension over other social interests.