The Reform of EU Economic Governance

2. The Framework Of Eu Economic Governance

The new European system of economic governance has basically modified the framework requirements for national collective agreement and has generated a new European interventionism in the sphere of wage policy: the EU’s road map for change is a decentralized system of collective agreement (European market integration did not automatically cause a convergence of national collective agreement systems). The new European interventionism generated a direct assault on established systems of multi-employer agreement, and must be regarded as a political undertaking to mitigate European trade unions. (Schulten and Müller, 2013) EU economic governance has been generated by inter-state coordination as a method to take action on the currency area’s advances and to improve merging. Policy-makers and political leaders should consider a set of realistic modifications that could augment the record of EU economic governance. As a response to the euro area crisis, EU leaders should have readjusted the institutional basis of European Monetary Union (EMU). EU governance assigns a priority to merging in terms of fiscal and competitiveness aggregates (fiscal discipline and market elasticity may disunite EU economic frameworks). EU economic coordination is politically sensitive. More energy should be spent on enhancing the coordination of national policies immediately. National welfare policies and wage-setting systems are an outstanding determinant of EU convergence or divergence. (Thillaye, 2013)