EUKN - European Urban Knowledge Network - Globalisation does not lead to an erosion of social Europe

Globalisation does not lead to an erosion of social Europe

Introduction

Globalisation is one of the defining phenomena of today’s economy. Many see globalisation as an opportunity promoting specialisation, innovation and productivity growth. Others however perceive globalisation as a threat to the values, institutions and policies that have underpinned post-war Europe’s success and way of life. In their eyes, globalisation erodes 'social Europe'. This study, commissioned by the European Commission, examines the social impact of globalisation for the EU economies and the policy challenges that arise. The study’s key message is that the EU as a whole will gain from globalisation, but that these gains will not be uniformly distributed across individuals, regions and countries. Nonetheless, according to the researchers, this does not mean that globalisation will lead to an erosion of 'social Europe'.

Proposition

What is the social impact of globalisation for the EU economies and the policy challenges that arise?

Description

There is little doubt that globalisation is having, and will continue to have, a pervasive influence on 21st century economic and societal developments. International flows of goods, services and capital have all increased substantially over the past two decades. Yet, much of the increase in exposure to international competition confronting EU member states is, in fact, the result of European economic integration.

Nowadays, there have been growing fears that the European social model, seen as a defining feature of the EU and its member states, can no longer be sustained and that it will have to be reined back or even dismantled. This study therefore examines the social impact of globalisation. It starts by looking at the conceptual background. Then it provides an extensive empirical analysis of the different facets of globalisation and its social dimension. To conclude, it moves on to discuss policy issues.

A clear conclusion of this report is that fears of globalisation eroding 'social Europe' are largely unfounded. The researchers state that there is no compelling evidence that globalisation is leading inevitably to a ‘race to the bottom’ in social policy or in the capacity of European society to maintain its commitments to solidarity and equality.

Background information

On the basis of the study on the effects of globalisation on social Europe, a brief for policy makers has also been created.

EU involvement

This report was financed by and prepared for the use of the European Commission, Directorate-General for Employment, Social Affairs and Equal Opportunities, Unit for Social and Demographic Analysis.

The study was carried out with participation from the following partner organisations:

• Centre for European Policy Studies (CEPS), Brussels (Lead Contractor)
• Fondazione Rodolfo Debenedetti, University of Bocconi, Milan
• Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
• University of Nottingham, Nottingham
• TÁRKI Social Research Centre, Budapest

Conclusions

The study’s key message is that the EU as a whole will gain from globalisation, but that these gains will not be uniformly distributed across individuals, regions and countries. Gains will also not arise automatically, but will depend on successful adaptation and well-judged policy responses. The authors state that in particular the EU has to balance its efforts to boost competitiveness and to transform its economy. This should be done by adopting and implementing policies that smooth the adjustment process and offer sufficient protection to those vulnerable to the changes and uncertainties that globalisation will bring.

Contact info

Centre for European Policy Studies
Brussels
Phone: +32-2 229 39 11
Fax: +32- 2 219 41 51
info@ceps.be

Publication date

/03/2008

Researcher

Centre for European Policy Studies

Links

Visit the website of the Centre for European Policy Visit the website of the European Commission's Directorate for Employment, Social Affairs and Equal Opportunities

Download the study 'Is social Europe fit for globalisation?' (PDF, Eng, 2.75 MB)

Download the policy brief based on the study (PDF, Eng, 200 kB)

Document type

research

Themes

Urban Policy

Keywords

Economy knowledge & employment