Chapter 12 shows that the Covid-19 emergency and the ensuing suspension of the Stability and Growth Pact (SGP) and its sanctioning mechanisms in 2020 led to crucial changes in the EU’s new economic governance (NEG) regime. For example, the transnational distribution of EU funds, institutionalised by the EU’s Recovery and Resilience Fund (RRF) Regulation in 2021, meant that the post-Covid NEG regime no longer mimicked the divisive beggar-thy-neighbour tools that transnational corporations use to steer their subsidiaries and workforce. Even so, EU executives continue to direct the post-Covid NEG regime without much participation by national parliaments and the European parliament or unions and social movements. Instead of using the financial sanctions of the suspended SGP, EU executives use the policy conditionalities attached to RRF funding to reach their objectives, which are in keeping with the overarching commodification script.

Chapter 1 outlines why we wrote the book, namely, to provide a clear-cut account of the EU’s ‘silent revolution’ leading to a much more vertical new economic governance (NEG) regime after the crisis of 2008 and its effects on European employment relations, public services, welfare states, and democracy; to develop a new analytical paradigm capable of capturing the interplay between the supranational formulation of the EU’s NEG prescriptions, their country-specific deployment, and their effects on labour politics and democracy; to empirically assess the policy orientation of EU interventions in two policy areas (employment relations and public services), three public service sectors (transport, water, and healthcare), and four countries (Germany, Italy, Ireland, Romania), during the pre-NEG (1957–2008), the NEG (2009–2020), and the post-Covid-19 (2020–2022) period; to analyse the responses of unions and social movements to these NEG interventions since 2009, and their feedback effects on the EU’s post-Covid NEG regime; to show that labour politics matters, as unions and social movements are essential in framing the struggles about the policy direction of EU economic governance along a commodification–decommodification axis rather than a national–EU politics axis – a direction that may lead to the EU’s disintegration.

In Chapter 13, we provide a preliminary analysis of the policy orientation of the EU’s post-Covid-19 new economic governance (NEG) regime to give policymakers, unionists, and social-movement activists an idea about possible future trajectories of EU governance of employment relations and public services. We do that on the basis of not only the recently adopted EU laws in these two policy areas, such as the decommodifying Minimum Wage Directive, but also EU executives’ post-Covid-19 NEG prescriptions in two areas (employment relations, public services), three public sectors (transport services, water services, healthcare services), and four countries (Germany, Italy, Ireland, Romania). Vertical NEG interventions in national wage policies paradoxically cleared the way for the decommodifying EU Minimum Wage Directive by effectively making wage policy an EU policymaking issue, but, in the area of public services, we see an accentuation of the trend of NEG prescriptions in recent years: more public investments but also much more private sector involvement in the delivery of public services.

Chapter 3 outlines our three conceptual innovations for the study of European integration and EU interventions in the socioeconomic field. First, we shift from the classical distinction of negative and positive integration to one that distinguishes horizontal and vertical integration modes. Second, we propose to go beyond the classical, state-centred (intergovernmental or federal) paradigms of EU law and political science, as we have found that the EU’s new economic governance (NEG) regime mimics the corporate governance regime that transnational corporations use to steer the activities of their subsidiaries and their workforce. Finally, we pursue an analytical approach that complements existing EU politicisation studies, which assess the salience of Eurosceptic views in media debates, opinion polls, elections, and referenda, as we must study EU politicisation also at the meso-level of interest politics. After all, the political cleavages that structure national politics have neither been created in individuals’ minds at the micro-level nor are they simply an outcome of systemic macro-level changes.

Chapter 7 shows that EU leaders had already started in the 1980s to steer the trajectory of national public services in a commodifying direction. The commodifying pressures from direct EU interventions reached a peak in 2004 with the Commission’s draft Services Directive, which failed to become law because of unprecedented transnational protest movements. After the financial crisis however, the EU’s shift to its new economic governance (NEG) regime empowered EU executives to pursue public service commodification by new means. Our analysis reveals that the NEG prescriptions on public services for Germany, Italy, Ireland, and Romania consistently pointed in a commodifying direction, by demanding both a curtailment of public resources for public services and the marketisation of public services. Although our analysis uncovers some decommodifying prescriptions, namely, quantitative ones calling for more investment at the end of the 2010s, they were usually justified with policy rationales subordinated to NEG’s commodification script.

In Chapter 4, we identified commodification as the policy orientation most relevant to our analysis of the nexus between EU economic governance and labour politics and developed a corresponding novel analytical framework to assess new economic governance (NEG) prescriptions in the areas of employment relations and public services. Before engaging in this assessment however, we need to understand the prescriptions’ meaning, for which we must make an additional analytical move. The meaning of NEG policy prescriptions depends not only on their wording but also on their location in larger policy scripts and their uneven coercive power across countries, time, and policy areas. Hence, NEG prescriptions are embedded in larger semantic fields and taxonomies, in power struggles over the definition of appropriate solutions to social problems, and in the EU’s integrated but also uneven political economy. Chapter 5 thus first explains the semantic, communicative, and policy contexts in which we situate NEG prescriptions and then outlines the implications of this analytical move for our research design, including case selection, data collection, and comparative approach.

Chapter 8 traces the EU governance of transport services from the Treaty of Rome to the new economic governance (NEG) regime adopted by the EU after the 2008 financial crisis. Initially, European public sector advocates were able to shield transport from commodification, but, over time, the Commission gradually advanced a commodification agenda one transport modality after another. Sometimes, however, the Commission’s draft liberalisation laws encountered enduring resistance and recurrent transnational protests by transport workers, leading the European Parliament and Council to curb the commodification bent of the Commission’s draft directives. After 2008 however, NEG provided EU executives with new means to circumvent resistance. Despite their country-specific methodology, all qualitative NEG prescriptions on transport services issued to Germany, Italy, Ireland, and Romania pointed towards commodification. But the more the Commission succeeded in commodifying transport services, the more the nature of counter-mobilisations changed. Accordingly, the European Transport Workers’ Federation’s Fair Transport European Citizens’ Initiative no longer targeted vertical EU interventions, but rather the social dumping pressures created by the horizontal free movement of services and fellow transport workers. This target made joint transnational collective action more difficult.

Chapter 6 shows that workers’ wages and employment relations were, until the 2008 crisis, shaped by horizontal market pressures rather than direct political vertical EU interventions in the labour policy area. That changed radically after the EU’s shift to its new economic governance (NEG) regime. We found that the EU’s NEG prescriptions on wage levels, collective bargaining, and hiring and firing mechanisms followed a consistent trajectory that furthered the commodification of labour in Italy, Ireland, and Romania, but less so in Germany. Instead, Germany received decommodifying NEG prescriptions on wage policy that were linked to a rebalance-the-EU-economy policy rationale. Although this policy rationale was still compatible with NEG’s overarching commodifying script, the diverging policy orientation of prescriptions in this area across countries made it hard for unions to challenge NEG transnationally.

Chapter 11 compares the policy orientation of the EU’s new economic governance (NEG) prescriptions in two policy areas (employment relations, public services), three sectors (transport, water, healthcare), four countries (Germany, Italy, Ireland, Romania) from 2009 to 2019. It reveals that almost all qualitative prescriptions pointed in a commodifying direction. Most quantitative prescriptions tasked governments to curtail wages and public expenditures too, but, over time, they not only became less coercive but also increasingly pointed in a decommodifying direction, tasking governments to invest more. It would, however, still be wrong to speak of a socialisation of NEG, not just given the decommodifying prescriptions’ weak coercive power but also because of their links to policy rationales that are compatible with NEG’s overarching commodification script. Moreover, Chapter 11 shows that NEG prescriptions tasked governments to channel more public resources into the allegedly more productive sectors (transport and water services) rather than into essential social services like healthcare. Given NEG’s country-specific methodology, it is not surprising that there have been only few instances of transnational action on specific NEG prescriptions. By contrast, the share of transnational labour protests targeting EU interventions broadly defined increased after 2008. This suggests that NEG has been altering protest landscapes.

Chapter 14 concludes the book, highlighting its major theoretical and practical insights for the study of EU integration and for the prospects of democracy in Europe. The technocratic design of the EU’s new economic governance (NEG) regime eschewed citizens’ and workers’ political rights to have a say in policymaking; and the commodifying bent of its prescriptions eroded their social rights to be protected from the vagaries of the market. After the pandemic, the technocratic bent in EU economic governance endured, as the National Recovery and Resilience Plans were co-designed by national and EU executives without any meaningful input from unions and social movements, and without national parliaments and the European Parliament making any amendments. The commodifying direction of the NEG regime also endured post-Covid, albeit with some concessions, notably in employment relations. EU executives have had to face the prospect that the hollowing out of social rights that resulted from commodification is pushing electorates towards Eurosceptic parties. In the current unstable context, labour politics matters a lot. Unions and social movements are essential in framing the social and political struggles about the policy direction of EU economic governance along a commodification–decommodification axis rather than a national–EU politics axis.