Labour market performance in the EU periphery : lessons and implications

The problems and challenges addressed in the Commission's White Paper on "Growth, Competitiveness, Employment" affects the peripheral member states acutely, and in a way that differs considerably from how the richer, more developed, core members are affected. To set the scene for our reflections on the White Paper, we briefly examine the economic context and the key stylised facts of the four main EU peripheral economies (Greece, Ireland, Portugal and Spain), and question whether much of the existing econometrics research literature presents a useful picture of how policies should be design to address their labour market and competitiveness problems. We then explore the relevance of the White Paper analysis and policy proposals, and deduce that a very different focus is required when moving from the core to the periphery. We conclude with an outline of the types of policy issues that arise in the periphery in assisting its transition to a higher level of development and a more satisfactory and robust labour market performance.