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The European Semester in the North and in the South: Domestic Politics and the Salience of EU‐Induced Wage Reform in Different Growth Models

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  • Valerie J. D'Erman
  • Daniel F. Schulz
  • Amy Verdun
  • Dennis Zagermann

Abstract

Macro‐economic policy coordination remains a challenge in the EU. The European Semester was designed to help facilitate more coordination. In the area of wage policies, it encourages Germany and the Netherlands to support stronger wage growth, while Italy and Portugal have been told to exercise wage restraint. This paper analyses how domestic interest group politics influence how EU recommendations are received. Reflecting on the different growth models that underpin these four countries, we find that country‐specific recommendations meet country‐specific obstacles – independent of whether recommendations aim at increasing or reducing wages. Specifically, we observe that domestic actors successfully mobilize against EU recommendations that go against the interests of their constituencies, but are less effective in mobilizing for recommendations aligning with their interests. Hence, we submit that high salience of EU influence poses an obstacle for EU‐induced reform in the South while low salience limits EU influence in the North.

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  • Valerie J. D'Erman & Daniel F. Schulz & Amy Verdun & Dennis Zagermann, 2022. "The European Semester in the North and in the South: Domestic Politics and the Salience of EU‐Induced Wage Reform in Different Growth Models," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 21-39, January.
    • Handle: RePEc:bla:jcmkts:v:60:y:2022:i:1:p:21-39
    DOI: 10.1111/jcms.13274
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    Cited by:

    1. Nicole Baerg & Mark Hallerberg, 2022. "Council Checks of the Commission under the European Semester: Does Member State Power and Euroscepticism Still Matter?," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 58-80, January.
    2. David Bokhorst, 2022. "The Influence of the European Semester: Case Study Analysis and Lessons for its Post‐Pandemic Transformation," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 101-117, January.
    3. Bart Vanhercke & Amy Verdun, 2022. "The European Semester as Goldilocks: Macroeconomic Policy Coordination and the Recovery and Resilience Facility," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 204-223, January.
    4. Reinout Arthur van der Veer, 2022. "Walking the Tightrope: Politicization and the Commission's Enforcement of the SGP," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 81-100, January.
    5. Valerie D'Erman & Amy Verdun, 2022. "An Introduction: “Macroeconomic Policy Coordination and Domestic Politics: Policy Coordination in the EU from the European Semester to the Covid‐19 Crisis”," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 3-20, January.
    6. Marjoleine Hennis, 2022. "Par le Haut Ou Par les Pays‐Bas? French and Dutch Approaches to European Social Policy Coordination Compared," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 136-151, January.

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