Globalization, “organized capitalism” and German labour II

All member states of the European Union are facing the challenges of globalization and the pressures of meeting the convergence criteria for economic and monetary union. Germany faces an additional and unprecedented burden of integrating the former GDR politically, socially and economically. Superficially, political integration has occurred – socially and economically, little integration has been achieved. The additional strains and sacrifices are in danger of overburdening the consensus system which has represented West Germany’s distinctive strength and resilience. An apparent decline in consensus threatens above all that major post‐war innovation : the integration of German labour into a “democratised” corporatist system. The co‐operation and collaboration implicit in this system was paralleled by labour’s accommodatory practical philosophy of economic democracy. But will consensus survive? Will economic democracy wither away? Either a new politico‐industrial system is being born in Germany, or the old one will just disintegrate, with consequences extending well beyond Germany’s borders.