Recasting Welfare Capitalism Mark I. Vail Recasting Welfare Capitalism Economic Adjustment in Contemporary France and Germany TEMPLE UNIVERSITY PRESS Philadelphia Mark I. Vail is Assistant Professor in the Department of Political Science at Tulane University. He is a contributor to The State after Statism, edited by Jonah D. Levy, and has published work in Comparative Politics, European Journal of Political Research, and West European Politics, among other venues. TEMPLE UNIVERSITY PRESS 1601 North Broad Street Philadelphia PA 19122 www.temple.edu/tempress Copyright © 2010 by Temple University All rights reserved Published 2010 Printed in the United States of America The paper used in this publication meets the requirements of the American National Standard for Information Sciences—Permanence of Paper for Printed Library Materials, ANSI Z39.48-1992 Library of Congress Cataloging-in-Publication Data Vail, Mark I. Recasting welfare capitalism : economic adjustment in contemporary France and Germany / Mark I. Vail. p. cm. Includes bibliographical references and index. ISBN 978-1-59213-967-5 (cloth : alk. paper) 1. Welfare state—France. 2. Capitalism—France. 3. Welfare state— Germany. 4. Capitalism—Germany. I. Title. HN425.5.V35 2009 330.12'60943—dc22 2009013154 2 4 6 8 9 7 5 3 1 In memory of Bernadette Popovitch Contents List of Tables ix Preface xi Abbreviations xvii Introduction: Recasting Welfare Capitalism in an Age of Austerity 1 1 The Politics of Austerity in Advanced Industrial Democracies 16 2 The Rise and Fall of the Postwar Golden Age and the Development of French and German Welfare Capitalism 33 3 Recasting France’s Political-Economic Order: The Demise of Dirigisme and the Turn to the Market 50 4 German Reunifi cation and the Economic and Social Incorporation of Eastern Germany 66 5 Modernizing the French and German Labor Markets in an Age of Austerity 82 6 The Shifting Politics of French and German Social-Insurance Reform 115 7 New Social Rights in France and Germany 144 Conclusion: French and German Welfare-Capitalist Adjustment in Historical and Comparative Perspective 161 Notes 173 Index 221 List of Tables I.1 Post-1945 Models of French Policymaking 12 I.2 Post-1945 Models of German Policymaking 12 4.1 Programs for Economic Development and Social Welfare in Eastern Germany 69 5.1 Major French Labor-Market Reforms, 1993–Present 99 5.2 Major German Labor-Market Reforms, 1993–Present 112 6.1 French Health and Pension Reforms, 1993–Present 120 6.2 German Health and Pension Reforms, 1989–Present 132 7.1 French Antipoverty Benefi ts, 1956–Present 153 C.1 Major French Social-Protection Reforms, 1988–Present 166 C.2 Major German Social-Protection Reforms, 1989–Present 167
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