The Single Market has no doubt prompted some relocation of jobs across countries, and this has at times triggered fears of “social dumping”.18 But in fact openness has not fundamentally challenged labour protections. One main reason for this is that safeguards central to the European social model have been progressively embedded in European law, ensuring gradual convergence in labour standards among EU countries.
The green boxes indicate the instruments that most central banks have at their disposal. The salmon colored boxes are measures that can be applied by macroprudential authorities, but whose effectiveness in mitigating systemic risks is generally perceived to be limited. The red boxes indicate instruments that could be applied, but are currently not within the remit of most central banks.