When do prisoners escape? The limits of consensus-building and labour market reform in Greece

This paper examines the process of the social dialogue in Greece and the attempt by government to activate it in order to secure labour market reforms. The core research question posed is: Why did the social dialogue not lead to more successful reform? The external stimulus from the EU existed: Greece was intent on securing "euro" entry, albeit a little late, and the agenda of the SGP and Lisbon was underway. A social dialogue was established in 1997, with initiatives on labour market reform in 1998 and 2000. The external constraint proved ineffective, however, due to the strategies and interests the various partners brought to the social dialogue, which reflected historical legacies of non-cooperation, intervention and mistrust. The domestic institutional setting sustained blockages to more substantial reform, and the partners retreated from the potential for mutual gains.