This article develops our theoretical understanding of social partnership in Eastern and Western Europe, focusing on two aspects. First, it considers the reasons why both governments as well as social partners sustain social partnership even in the context of tight monetary policy, liberalization and globalization. Second, it explains the differing dynamics of negotiated policies in Eastern and Western Europe. It concludes that the interest constellations of the actors involved, rather than institutional or organizational issues, are the primary explanatory factor for differences in social partnership.
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