Social Justice and open coordination in Europe.

In his Tinbergen lecture Jacques Drèze broaches two interesting themes. He argues, firstly, that we have failed to develop an efficient instrument for income insurance on behalf of potentially low-skilled workers; wage subsidies are such an instrument. Secondly, he argues that labour market integration in an economic union like the EU entails externalities, resulting in underprovision of insurance; coordination or matching grants could overcome that second inefficiency. I largely share Drèze's policy paradigm. Yet, I believe enhancing social justice in the European Union requires, at this stage of European cooperation, a different methodology of policy coordination, which has recently been coined 'open coordination.' I will develop my argument in favour of 'open coordination' with reference to the two themes Drèze discusses.