European Insiders and Outsiders? Assessing the Reaction of German and French Trade Unions to EU Austerity

Abstract

Though the existence of a European insider-outsider division has previously been theorised, a robust link between the actions of certain workers and the existence of such divisions has yet to be demonstrated. In this article, I examine differing reactions of German and French trade unions to austerity in Southern Europe. German and French unions reacted to austerity in a lukewarm manner, contributing to the emergence of European divides. This was particularly the case in Germany, in which the stronger position within Economic and Monetary Union meant that there were fewer incentives for solidarity. I link this development with the nature of the contemporary EU, contending that the division is related to the propensity of Economic and Monetary Union to initiate competition between national labour markets and an upturn in nationalism.