Comparing labour market reform in Greece and Italy in the 1990s

In the early 1990s the political economies of Italy and Greece had many characteristics in common that could be expected to contribute to path-dependant resistance to labour market reform. This paper examines the attempts at reform in the two countries during the decade and the factors that contributed to their significantly different outcomes. It argues that the political and economic crises facing Italy triggered an alteration in the orientation of interests and practices of key actors, the new direction being largely defined by the effects of Europeanization. In Greece, by contrast, the absence of path-altering factors reinforced the status quo and thus resulted in stalemate for years to come.