The Changing Role of the Labour Market within the EMU: the Case of Slovenia

摘要

The paper conceptualizes changes in the labour market and suggests labour market policies/reforms after Slovenia has joined the European Monetary Union. The loss of monetary sovereignty implies that in case of an external shock the labour market is burdened by a large amount of the adjustment process. But to increase flexibility of the labour market requires politically unpopular reforms. At the moment, Slovenia is faced with high inflation and a rigid labour market, which is also a key element of its low competitiveness. The reforms were halted under the pressure of their unpopularity. The paper, although concentrating on Slovenia, has general implications since the experiences of the newcomer to EMU are significant for other transition economies which are expected to follow the same path.