NATIONAL LABOR-MARKET INSTITUTIONS AND THE EUROPEAN ECONOMIC AND MONETARY INTEGRATION PROCESS

This article investigates the role of national labour market instituti ons for the chances of successful transition to Economic and Monetary Union (EMU) in Europe, as well as for its viability. The conclusions a re rather pessimistic. Although overlooked by the Maastricht Treaty, t he need for real convergence (convergence of unemployment rates) is em phasized as a major condition for success. However, current labour mar ket institutions in the EU make it quite unlikely that this condition will be fulfilled. We show that the implementation of the Maastricht p rogramme may instead turn into an obstacle to monetary unification.