In the process of European integration the member states have agreed t
o transfer substantial jurisdiction in the areas of economic and monet
ary policy to the European Community. In industrial relations, however
, they have refused to make similar concessions. Despite its numerous
attempts the Commission of the EC has not as yet been able to secure t
he political consensus necessary for a European model of employees' pa
rticipation and codetermination. In the context of the Single European
Market the national systems of codetermination are destined to play a
decreasing role. With the continuing development of the single market
and its interlocking business structures across national borders, reg
ulations on codetermination that extend only up to such borders and no
further can be expected to lose in significance. This paper traces th
e history of codetermination in the European Community. It also analys
es the reasons why the various directives and regulations drafted by t
he EC Commission since 1967 have been rejected by the Council of Minis
ters.