ABSTRACT
Institutional layering efforts can profoundly change key actors expectations and preferences and ultimately pave the way to a complete overhaul of the institutional arrangements by way of institutional conversion and displacement, which happened on the eve of the new century. The Spiegel published an internal benchmarking-committee paper by Streeck and Heinze, which they had prepared for the next meeting of the steering committee and in which they presented their thoughts on the necessary reconstruction of German employment policy. The government thus again highlighted the key role of the LGFRC. The final section in the concept, however, deviated from this tradition and indicated a compromise in the upcoming conflict between moderate supply-siders and traditional Keynesianists in the union's camp. The chapter explains the gradual transformation at the welfare work nexus is also a result of a further entangling of German executive federalism.
