A Paradigmatic Shift? Economic Crises and Labour Market Policies on the Eu’s (Semi-)Periphery

Abstract

Ireland, Portugal and Slovenia – three states with different historical legacies and institutional frameworks – promoted labour market flexibility and active labour market policies before and during the 2008 crisis. These policies were postulated as basic poli-cies on the EU level. However, a significant change came with the COVID-19 crisis when governments in all three states implemented measures much more resembling neo-Keynesian policies. In the article, we show that the crucial mechanisms for the various labour market poli-cy choices made in these three countries were due to the two crises being of distinct types, the (non)coincidence of interests of a range of actors and classes, and the dif-ferent policy frameworks promoted by the EU. Keywords: crises, flexibility, labour market, European union, semi-periphery, COVID-19