SOCIAL POLICY MAKING IN THE EU: CONTENDING PARADIGMS AND ALTERNATIVE APPROACHES

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1 SOCIAL POLICY MAKING IN THE EU: CONTENDING PARADIGMS AND ALTERNATIVE APPROACHES A THESIS SUBMITTED TO THE GRADUATE SCHOOL OF SOCIAL SCIENCES OF MIDDLE EAST TECHNICAL UNIVERSITY BY SELEN GÜNEL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN THE DEPARTMENT OF EUROPEAN STUDIES MAY 2008

2 ABSTRACT SOCIAL POLICY MAKING IN THE EU: CONTENDING PARADIGMS AND ALTERNATIVE APPROACHES Günel, Selen M.S., Department of European Studies Supervisor: Assist. Prof. Dr. Galip Yalman May 2008, 182 pages This thesis analyzes the evolution of European social policy via focusing on the unfolding contentions between two different notions that disagree over Europe s direction regarding the best social-economic system in Europe. Taking its point of departure in the ratification crisis and the impasse surrounding the Constitutional Treaty, the thesis argues that the contrasting interpretations of the Treaty and the attendant cleavages in the European polity are illustrations of such ongoing ideological struggles among alternative paradigms and approaches. Naming these contending approaches as project of neoliberalism and project of regulated capitalism, the evolution of European social policy is investigated with a focus on interplays between these projects; the self-transformation of the projects in the course of integration; and the relations between economic and social governance in the construction of an ever closer Union. To this purpose, the thesis theoretically employs Polanyian conceptual framework of double movement alongside theoretical approaches of Streeck, Hooghe&Marks, and Pochet that view the evolution of European social policy in conflictual encounters between two opposing notions. Against this theoretical background, the thesis surveys the integration history from the Treaty of Rome until the Lisbon Treaty of It concludes that the European social policy has evolved within interplays among projects of neoliberalism and regulated capitalism and there has always been an asymmetric relationship between the economic and social governance in Europe as the social governance has always had a secondary and even a subservient position with regard to economic governance in the European polity. Keywords: European social policy, double movement, regulated capitalism, neoliberalism, Constitutional Treaty.

3 ÖZ AVRUPA BİRLİĞİNDE SOSYAL POLİTİKALAR: ÇATIŞAN PARADİGMALAR VE ALTERNATİF YAKLAŞIMLAR Günel, Selen Yüksek Lisans, Avrupa Çalışmaları Bölümü Tez Yöneticisi: Yrd. Doç. Dr. Galip Yalman Mayıs 2008, 182 sayfa Bu tez Avrupa sosyal politikasının gelişimini Avrupa nın, sosyal-ekonomik sistemiyle ilgili olarak izlemesi gereken yön hakkında farklı görüşler savunan iki ana eğilim arasında süregiden mücadeleler bağlamında incelemektedir. Avrupa Anayasal Antlaşmasının onay aşamasında ortaya çıkan krizden yola çıkan tez, Antlaşma üzerine yapılan tezat yorumlamalar ile bunların beraberinde ortaya çıkan AB içindeki fikir ayrılıklarının; alternatif paradigmalar ve yaklaşımlar arasındaki sürekli ideolojik çekişmelerin bir örneği olduğunu ileri sürmektedir. Söz konusu çatışan yaklaşımlar neoliberalizm projesi ve düzenlenmiş kapitalizm projesi olarak adlandırılarak, Avrupa sosyal politikası bahse konu projeler arasındaki karşılıklı etkileşimler; projelerin entegrasyon süreci boyunca geçirdikleri dönüşümler ve AB nin iktisadi-sosyal yönetişimi ilişkisine odaklanılarak incelenmektedir. Bu amaçla, tez teorik olarak Polanyi nin çift-yönlü hareket kavramsal çerçevesi ile Avrupa sosyal politikasının gelişimini çatışan ve çekişen iki eğilim arasındaki mücadeleler ile açıklayan Streeck; Hooghe ve Marks ile Pochet nin teorik yaklaşımlarını ele almaktadır. Çizilen teorik çerçeve ışığında, tez Avrupa sosyal politikasının gelişimini Avrupa Ekonomik Topluluğu nu kuran Roma Antlaşması ile 2007 tarihli Lizbon Antlaşması arasında geçen süreci ele alarak, analiz etmektedir. Tez entegrasyon tarihi boyunca Avrupa sosyal politikasının neoliberalizm ve düzenlenmiş kapitalizm projeleri arasındaki mücadele ve karşılıklı etkileşimler çerçevesinde geliştiği; Avrupa iktisadi ve sosyal yönetişimi arasında hep asimetrik bir ilişki olduğu ve Avrupa da sosyal politikaların iktisadi politikalara nazaran ikincil ve hatta boyun eğer bir pozisyonda olduğu sonuçlarına varmaktadır. Anahtar Kelimeler: Avrupa sosyal politikası, çift yönlü hareket, düzenlenmiş kapitalizm, neoliberalizm, Anayasal Antlaşma

4 TABLE OF CONTENTS PLAGIARISM...iii ABSTRACT... iv ÖZ v DEDICATION... vi ACKNOWLEDGEMENTS....vii TABLE OF CONTENTS..viii LIST OF TABLES xi LIST OF ABBREVIATIONS..... xii CHAPTER 1.INTRODUCTION... Error! Bookmark not 2.THE CONSTITUTIONAL CRISIS... Error! Bookmark not 2.1. General Framework of the Constitutional Treaty:Error! Bookmark not 2.2. The Ratification Process of the Constitutional TreatyError! Bookmark not 2.3. Analysis of the Failed Referenda in France and in the NetherlandsError! Bookmark not France: the course of the campaign... Error! Bookmark not The Netherlands: the course of the campaignerror! Bookmark not 2.4. Categorisation of the no votes and the no voters:error! Bookmark not 2.5. Conclusion... Error! Bookmark not 3.THEORETICAL APPROACHES TO SOCIAL POLICYError! Bookmark not 3.1. Defining Social Policy and European Social Policy: a very thorny issue Error! Bookmark not 3.2. Theoretical Origins of the Clashing Ideologies: The Double Movement: Economic Liberalism (laissez-faire) Versus Protective Countermovement (social protection)error! Bookmark not Principle of economic liberalism: Pro-market approacherror! Bookmark not a. Classical Economics... Error! Bookmark not b. Inspiring Neoliberalism: Road to Serfdom Error! Bookmark not Principle of Social Protectionism... Error! Bookmark not a. Inspiring Regulatory Approach: The Great Transformation: The Political and Economic Origins of Our Time... Error! Bookmark not

5 3.3 Accounting for the Evolution of European Social Dimension: Various Theoretical Models... Error! Bookmark not Models for Evolution of European Social DimensionError! Bookmark not a. Free Trade/ Alliance of Neoliberalism-Nationalism versus Supranational Welfare State Formation... Error! Bookmark not b. Neoliberal Project versus Regulated Capitalism ProjectError! Bookmark not c. Economists versus Social Group... Error! Bookmark not 3.4. Conclusion... Error! Bookmark not 4.HISTORICAL EVOLUTION OF EUROPEAN SOCIAL POLICYError! Bookmark not 4.1. The foundations of European Economic Community: the market ethos. Error! Bookmark not s and 1980s: neoliberal outlook gaining grounderror! Bookmark not 4.3. Single European Act: subversive liberalism Error! Bookmark not 4.4. Post-SEA period: intensifying contentions... Error! Bookmark not 4.5. Treaty Establishing the European Union: two-tracks in Community social dimension... Error! Bookmark not TEU and the economic governance... Error! Bookmark not TEU and the social governance... Error! Bookmark not 4.6. Treaty of Amsterdam: left versus left... Error! Bookmark not The context of the negotiations of Treaty of AmsterdamError! Bookmark not Employment Chapter in the Treaty of AmsterdamError! Bookmark not Social Policy in the Treaty of Amsterdam Error! Bookmark not 4.7. Social Policy towards the new millennium... Error! Bookmark not Nice Treaty: social policy overshadowed by institutional bargains.. Error! Bookmark not a. Implications of alterations in decision-making procedures:error! Bookmark not b. Charter of Fundamental Rights of the European Union:Error! Bookmark not Period between Lisbon I and Lisbon II ( )Error! Bookmark not a. Lisbon European Council and Social Policy Agenda for Error! Bookmark not b. Broken alliance among moderates: post Lisbon developments. Error! Bookmark not 4.8. Conclusion... Error! Bookmark not

6 5.THE FAILED CONSTITUTIONAL TREATY AND THE LISBON TREATY: SOCIAL CREDENTIALS... Error! Bookmark not 5.1. Treaty establishing a Constitution for Europe (TCE)Error! Bookmark not Convention and elaboration of the social provisions of TCE: the contentions... Error! Bookmark not The IGCs and the signature of TCE... Error! Bookmark not TCE: The relationship between economic governance and social governance... Error! Bookmark not a. Economic governance in the TCE... Error! Bookmark not b. Social governance in the TCE:... Error! Bookmark not Post rejection and the alternative options for the Constitutional questionerror! Bookmark not 5.2. The Reform Treaty: The Treaty of Lisbon... Error! Bookmark not The background of the Reform Treaty... Error! Bookmark not a. July and October IGCs... Error! Bookmark not The Lisbon Treaty and social provisions.. Error! Bookmark not a Lisbon Treaty and the Charter of Fundamental RightsError! Bookmark not Treaty of Lisbon: the way ahead... Error! Bookmark not Conclusion... Error! Bookmark not 6.CONCLUSION... Error! Bookmark not APPENDIX MAJOR AMENDMENTS CONTAINED IN THE FAILED CONSTITUTIONAL TREATY BIBLIOGRAPHY... Error! Bookmark not

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