Governments and unions in the reform of the welfare state. Rupture of social dialogue in the periphery of the Eurozone?

Abstract

The article tackles the transformations in the production of public policies in Spain, Italy, Ireland and Portugal within the context of the Great Recession. From 2008 onwards, the periphery of the Eurozone has been under strong financial strain, which has reduced the margin for discretion of national political actors. Public policy-making has had to be adapted to a new scenario of implicit or explicit conditionality, depending on the case. Welfare reform in the four member states has been performed under the supervision of European institutions and following the imperatives of fiscal consolidation. European conditionality has negatively impacted on social pacts as mechanisms for the determination of public policies. The financial and economic crisis in the periphery of the Euro has implied the de-activation of the corporatist dynamics of social dialogue and has introduced significant changes in the models of socio-economic governance of these countries.