Labour Market Reforms

But the criticisms of the policy direction towards the fact that the diversities present at the national level leads to the decline of the ‘one-size-fits-all’ approach that flexicurity model proposes (Muffels, 2008, p.386). The Union has taken various measures for the establishment of the same but the question still arises regarding its effectiveness with the outburst of the worst financial crisis in 2008 after the Great Depression in 1930 (Flexicurity: Europe’s employment solution? 2008). The paper will be discussing the flexicurity approach adopted by the European Union along with the discussion of its principles and objectives and with special focus on Germany and Denmark. Highlight will be also given on the youth unemployment problem with reference to the Viking, Laval and Ruffert cases discussing the protection measures of the other countries with respect to the benefits in compliance with Art 3 and 49 of the EC treaty which focuses on the right to establish in any state or that of single market and rights of provision of services across the European Union. Now the subsequent section will be dealing with the concept of flexicurity. In today’s labor market there is a requirement of rigorous levels of flexibility and adaptability both in the interest of the employers as well as the employees for anticipating and responding to the demands of the market (Flexicurity Pathways, 2007, p.3). The crux of flexicurity is an emerging concept in the European Union and has been considered as a significant approach in the labor market and within the employment paradigm (EU Council: Common ‘flexicurity’ principles adopted, 2008). The policy has been first generated in the Nordic countries for the purpose of solving the European Union’s employment paradox. From the studies of Wilthagen and Rogowski in the year 2002, it gets revealed that flexicurity is regarded as the policy that directs towards a synchronized platform that boosts labor market flexibilities, work organizations as well as labor relations with security provision for the weak group of people inside and outside the labor market. The authors highlight that flexibility and security can be achieved through a focus on coordination. They stress that initial jolt will be derived from the macro-level actors like government and social partners. Implementation will be established on all levels of the economy with different means of flexibility complementing each other with corresponding varied security forms (Meyer, 2009, p.87). From the early 2000s, the European Union policy of flexicurity included an amalgamation of easy hiring and firing rules benefiting the unemployed and following a pro-labor market policy (Flexicurity: Europe’s employment solution? 2008). The European Foundation for the Improvement of Living and Working Conditions (Eurofound) has been established in the year 1975 working on the area of working conditions, living conditions and industrial relation ( Agencies and other European bodies, n.d.). The EU body while drafting policies limited itself while applying flexicurity policies with some common principles. The common principles which the flexicurity model proposes is that of flexible contractual agreements, comprehensive lifelong learning, effective labor market policies, and modern social-security systems.