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- W2613807396 abstract "All existing monetary unions centralise, to various degrees, specific social policy functions, notably functions that support economic stabilization, like unemployment insurance. The European Monetary Union features as the only exception. Compared to the United States, the European Monetary Union organises more solidarity within its member states, but far less between its member states: this is an untenable paradox of strong but parochial solidarity. Any way out of this paradox leads to a complex puzzle of sovereignty, solidarity and mutual trust.One should not underestimate the complexity of this puzzle, but not solving it implies a lasting fragility of the European construction. Contrary to what is sometimes argued, we are not facing a 'tragic dilemma' between European integration and maintaining social welfare states, but we need to repair major design flaws in the Monetary Union.The solution does not point to a European welfare state, but to a true union of welfare states: a European Social Union would support national welfare states on a systemic level in some of their key functions. It presupposes a basic consensus on the European social model. I will briefly refer to the European Commission's initiative to launch a 'European Pillar of Social Rights', since this can contribute to developing such a consensus. Risk sharing on the basis of mutual insurance – the kind of solidarity I advocate in this contribution – implies 'reciprocity'. Reciprocity is the cement of national welfare states; it can also inspire a European Social Union. For instance, we should apply a principle of reciprocity to current debates on cross-border mobility. Politically, the arguments presented in this contribution may seem an uphill battle today. However, we should not shy away from the rational argument: in order to 'take back control', Europeans must be ready to share risks and sovereignty in some key domains of their welfare states." @default.
- W2613807396 created "2017-05-19" @default.
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- W2613807396 date "2017-03-01" @default.
- W2613807396 modified "2023-09-23" @default.
- W2613807396 title "Social Policy in a Monetary Union: Puzzles, Paradoxes and Perspectives" @default.
- W2613807396 hasPublicationYear "2017" @default.
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