ABSTRACT
During the 1980s and 1990s, many observers assumed that corporatism in Western Europe had come to the end of its useful life. Economic internationalization, the changes in the labour market and the increase in unemployment after the oil shocks had changed the structure of European economies to such an extent that neither governments nor trade unions, it was believed, would be interested or able to engage in further forms of political exchange. Incomes policies had proven unsuccessful during the 1970s and forms of centralized wage bargaining seemed to lack support. To the surprise of many, the reality since has been different. Western governments, facing the constraints resulting from the oil shock, have pursued a double strategy of economic adjustment, combining elements that were previously seen as incompatible. They have firmly committed themselves to a non-inflationary economic and monetary policy within the European Monetary System and have further engaged in collaboration with their trade unions in order to adjust the wage expectations of workers to the needs of the economic and employment policy of governments.
