Third, international conditions and national starting points differ: ageing societies, various types of welfare state financing at national level – tax-based vs. contribution-based – and the increasing tax competition in the Union, as well as the detrimental effects of globalisation.

Against the backdrop of differing national traditions and institutions, forays in the area of social policy under the banner of European integration often trigger different effects in the member states. Hence, social policy at European level – particularly where it aims at harmonisation – is a highly complex political process which makes obtaining a majority (both in national parliaments and in the European Parliament) a lot more difficult. The level of complexity increases in line with the level of integration desired; ‘integration’ refers to the Europeanisation of national competencies; that is, to the delegation of these competencies to Brussels. European social policy takes shape at three levels:

1. at the substantive level, European social policy emulates the social policy of member states: national social security systems provide substantive benefits, such as unemployment benefits, for those in need.

2. at the regulatory level, the internal market requires regulation of European minimum standards, for example, in labour law and the coordination of social systems (e.g. the portability of public pension rights). These measures create a framework designed to prevent dumping and exclusion. They do not, however, result in redistribution. European legislation aims to balance adverse social effects of the four freedoms¹ particularly in the area of worker mobility.

3. European social policy also concerns coordination in the area of ‘soft law’. Soft law sets common objectives for member states – for example, concerning vocational training. However, these aims are not binding but merely serve as benchmarks for national governments.² However, since there is no penalty mechanisms the Open Method of Coordination (OMC) is primarily used in policy areas in which the EU has little or no power.

One Union – Many Welfare Models
European welfarism in terms of Europeanisation of social policy is dependent on the common interest of member states in ceding powers to the EU. There are three factors at play:

1. the degree of homogeneity of the member states (and in particular their respective living standards)

2. the rivalry between the member state and EU levels with respect to optimum problem-solving ability

3. the policy area in question

1. Free movement of goods, services, people and capital. [↩]
2. National standards are compared mainly by means of the Open Method of Coordination (OMC). The OMC was launched in 2000 to coordinate EU employment policy as introduced in the Treaty of Amsterdam. It is a coordination instrument for areas stretching outside EU competence. Once common aims – and common indicators – are drawn up, action plans are produced in the member states which, in turn, are assessed in the Council at the Commission’s behest. Aside from improving comparability of individual policies in the EU, the aim is to identify ‘best practices’ and thereby instigate knowledge transfers for possible political reform, or ‘political learning’ respectively. [↩]

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