The EU’s External Governance: Democracy Promotion in Europe and Beyond

Berthold Rittberger and Simon Meier-Beck

University of Mannheim

In this essay we examine the determinants of successful democracy promotion through political conditionality in the context of EU enlargement and the new European Neighbourhood Policy (ENP). Comparing the explanatory potential of rationalist and constructivist models, we find that compliance with democratic conditionality is manly driven by a ‘logic of consequences’. During the process of enlargement, a credible membership perspective and low domestic power costs were necessary prerequisites for effective democracy promotion. Adopting the same explanatory models to the new ENP we argue that the success of democratic conditionality is again strongly conditioned by the perceived costs and benefits of compliance but also by the perceived legitimacy, determinacy, and credibility of political conditionality. Without the ‘ultimate prize’ of accession, the prospective ‘rewards’ are likely to be too small to prompt authoritarian or semi-authoritarian regimes to undertake serious democratic reforms.

 

A CHINESE PERSPECTIVE ON LISBON STRATEGY

Zhou, Hong

Abstract:

The Chinese interpretations of the Lisbon strategy fall mainly into two different aspects: one focuses on the more or less neo-liberal orientation of the Lisbon Strategy, the other tries to assess the implications of this orientation toward the norms of national social welfare states. This article focuses on one of the main functions deployed by the Lisbon Strategy, i.e. the “innovation” discussed its definitions, contents, practices, and constraints. This article concludes that the direction of the Lisbon Strategy is more important than the quantitative goals it has set up to achieve, and China can in many ways learn from European experiences in designing, integrating and implementing development strategies.

 

Developments of Real Estate Markets for Housing in the EU

– What Can China Learn from the European Experience?

Prof. Hans-Hermann Francke

Introduction

Unusual increase of real house prices

The role of the fundamentals

Problems of European monetary policy: Different housing markets and different financial systems

The bubble-problem and the German puzzle of undervalutation

 

Real Estate Markets and Demographic Change: German Experiences and Chinese Perspectives

PD Dr. Harald Nitsch

Abstract: During the process of economic transition, China experiences considerable differences in regional incomes and living conditions. People react with migration, which, in turn, influences the different development of real estate markets in the provinces of China. Germany has experienced a similar process of internal migration, which was triggered by the huge income differentials after the re-unification of the country. We search for systematic patterns in migration and their impact on real estate markets in Germany and try to identify similar processes in the Chinese case.

 

European Monetary Policy: Context, Concepts and Challenges

Prof. Hans-Helmut Kotz

For the countries participating in the European Monetary Union (EMU), that is,sharing a common currency, macroeconomic policy has been fundamentally transformed. While fiscal policy (as well as labor market regulation and wage formation) further belongs to the national policy remit, monetary policy has been Europeanized. Concurrently, the nominal exchange rate, as a mechanism to deal with (intra-European) shocks, has been relinquished. EMU was the culmination of a long process beginning

(at the latest) with the European Monetary System in the late 1970s. It was seen as a logical corollary to the Single Market (One market, one money) which was about the removal of impediments to intra-

European exchange of goods and services as well as the free movement of capital and labor. In view of its primary target, delivering price stability, the ECB has been rather successful. Based on a quantitative definition of price stability (the nominal anchor) and acting upon its twopillar strategy (evaluation of short- and medium-run economic perspectives, analysis of monetary aggregates in light of medium to long-term price level developments), inflation has been contained over the last seven years at about 2 percent. At the same time, nominal interest rates have been historically low – in particular in those countries which, almost as a tradition, were prone to stronger price-level increases.

Challenges for Europe’s performance remain, nonetheless. Overall, they reflect heterogeneity in all its economic and conceptual dimensions: the differential growth and inflation performance (real interest rates, unemployment rates, wage-bargaining systems, and current-account imbalances),

asymmetries in financial markets (corporate sector funding, mortgage markets) as well as wage formation processes. They emanate at the same time from differing views about what macroeconomic policy can achieve or should strive for (different views of the world). But such heterogeneity actually does not differentiate Europe from other polities – it is the supra-national context which makes for a difference. However, such diversity or variety is of course not inherently problematic. Europe is an open project, developing from public debate.

 

Impediments to Sustainable Good GDP Growth in New EU Countries  – and Possible Applications to the Chinese Economy

Prof. Hubert Fromlet

The former planned economies among the new EU member states (NMS) are performing quite well in terms of growth. But is there a potential to improve economic growth more visibly? If yes, where are the sources or impediments to increased long-term growth? This discussion paper puts a special emphasis on microeconomic conditions for growth, considering the experience of the major economic policy shift in the NMS. The microeconomic approach is often neglected in commercial market analysis – and could, to some extent, serve as a guideline for future economic success in China as well. Macroeconomic stability is a necessary, but not sufficient, precondition for sustainable good growth. Improved microeconomic and institutional conditions can lead to desirable increases of the potential growth rate in an emerging economy.

 

IMPACT OF REFORMS OF THE WORKING OF THE EUROPEAN UNION INSTITUTIONS, ENCLOSED IN THE CONSTITUTIONAL TREATY, ON THE DECISION PROCESS FOR ECONOMIC AND BUDGETARY POLICY

Prof. Max PEYRARD

The 50 years since the Treaty of Rome, creating the European Economic Community, have brought peace and prosperity on a continent which known two world wars and a great depression during the 50 years before.

After remembering briefly the fundamentals of  the European Union (EU), I  shall divide the study of the impact of improvements provided in the Constitutional Treaty on the activities of the European Union, in two sections :The impact on the legislative process;The economic decisions making.

 

SOCIAL EUROPE IN THE DRAFT CONSTITUTION

Dr. Katarzyna Gromek Broc

The year 2007 marks the 50th anniversary of the first Treaty that starting formerly the process of European integration. It is hard to believe how much the idea of the ‘united Europe’ has progressed and how the objectives and focus have changed from purely economic concerns to social rights and an overall well-being of Europe’s citizens. Indisputably, the last decade has been overwhelmed by the attempts to make Europe closer to its people. Its dimension appears to be quite audacious, certainly far beyond the expectations and even in the most daring wishes of the ‘pilgrim fathers’ of Europe. The threshold of the New Millennium was tainted by “an obsession of human rights, citizenship, democracy, justice and constitutionalism.”  Bell argues that there has been a gradual shift from market integration model towards a social citizenship model. The economic integration and market requirements gradually faded for the benefit of social rights and the overall the citizens’ Europe’. However, a ’Social Europe’ clearly has roots in market integration. The realisation of the primary, economic, objectives of the Treaty of Rome, i.e. to establish Common Market, appeared to be crucial for the future development of social Europe. As Bercusson noticed, the free movement of workers constitutes a cornerstone of the social dimension of Europe since free movement of persons led to many issues and problems of a social nature involving questions such as the entitlements to social security benefits, pensions, workers families’ statute, social insurance, education or healthcare. Nonetheless, this was more of a side effect of economic integration than an intentional policy to enhance social rights in Europe.

 

以欧盟区域治理的视角看长三角区域合作

Examine regional cooperation in the Yangtze River Delta Area from the angle of view of the EU’s regional governance

华东理工大学 杨逢珉  孙定东

Yang Fengmin      Sun Dingdong

(East China University of Science and Technology)

摘  要：

长江三角洲地区，是我国目前经济发展速度最快、经济总量规模最大、最具有发展潜力的经济板块。但是，同时长三角地区又是一个地域相对狭小，省份较多、相互间有很多经济联系的地区。借鉴欧盟地区政策的经验，规避其地区政策的失误，从而在长三角地区进行区域治理有一定的实践意义和理论价值。

欧盟在一体化的每个阶段都制定相关法律加强了内外部的交流与合作，并使一体化不断地向更高的形式发展。主权国家间的经济发展如此，省际或城际间的长三角地区的经济合作更应如此。通过制定在国家以产业为特征的地区政策框架下的规范性法律法规，一方面有助于加强长三角内部合作的基础和相互间的利益协调，也有助于加强对外的区域合作，尤其是推动中国东中西部地区的协调发展。

欧盟结构基金的改革为各种措施的实施提供了充分的资金（如结构基金和聚合基金）支持，提高了欧盟成员国对共同体区域政策的重视程度，也产生很好的积极效益。长三角建立以产业、资源和地域为特征的区域协调发展基金或者区域政策进行的利益协调可以避开人为分割市场的行政地域划界，从而通过共同权力干预资源配置，进行全局和整体整合。

区域经济合作，客观上需要有一套紧密的制度性组织机构为各成员提供一个经常性的谈判和仲裁场所。为保证制度性组织机构行使权力，欧盟要求各成员让渡部分经济主权，由超国家机构统一调控。长三角地区为实现一体化的目标，也可以尝试成立一个在中央政府协调下的跨行政区的协调管理机构，加强区内协调和区外合作与发展。

关键词：长三角地区  欧盟的区域治理   协调发展

 

ABSTRACT

The Yangtze River Delta Area is not only a most active economic block with highest economic growth rate, biggest economic aggregate, and potential for economic development, but also a small area with many provinces amongst which there are a great number of economic ties. Drawing lessons from successful experience of the EU’s regional policy to reduce errors of China’s regional policy and conduct effective regional governance in the Yangtze River Delta Area has important theoretical value and practical significance.

The EU draws up the related laws in each stage of European integration, which promotes communication and cooperation between internal and external areas, and also makes the integration develop to a higher level. Economic development between sovereign states, Economic cooperation amongst the sovereignties is going well in this way, so the Inter-provincial or inter-city economic cooperation in the Yangtze River Delta Area should be conducted better. Making normative laws and regulations with industrial characteristics under the framework og regional policy, on the one hand, contributes to enhance internal cooperation and mutual interest coordination of this area; On the other hand, it also helps to strengthen its cooperation with other regions, especially gives impetus to the coordinated development of the eastern, the central and the western regions of China.

Reforms of Structural Funds and Cohesion Fund provide sufficient financial supports, raise the degree of attention of member states to the EU’s regional policy, and also achieve good economic results. In Yangtze River Delta area, Interest coordination under regional coordination and development fund or regional policy with characteristics of industries, resources and regions, can avoid contrived segmentation of market labeled by different administrative regions, and hence integrate and allocate resources.

Regional economic cooperation needs a set of institutional organizations working closely together to provide an arena of regular negotiation or arbitration for all members. In order to guarantee the organizations to exercise the power, the EU asks its members to transfer part of national economic sovereignties which are therefore controlled by a supra-national institution. To achieve the goals of economic integration, Yangtze River Delta Area could make an attempt to set up a trans-administrative-region coordination and management organization, which is directed by the central government and hence can coordinate cooperation and development between internal and external areas.

 

欧盟的金融市场准入与经营制度及其启示

韩  龙

区域经济一体化是当今世界经济发展的最突出的特征之一。许多区域经济一体化协议包含有金融市场准入与经营的制度安排，这些内容构成国际金融市场准入与经营的区域性制度，不仅对区域内的成员方具有约束，而且对区域外的国家具有重要影响。在众多的区域金融一体化安排中，欧盟的做法具有许多独到之处，令人注目。欧盟关于金融服务市场准入的规定最早可见于《欧共体条约》，该条约要求实现商品、人员、劳务和资本的自由流通，其关于开业、服务和资本流动的规定作为普遍原则适用于银行、证券和保险业。这些都为当时欧共体金融市场的统一和金融市场准入及经营制度的确立奠定了基础。但是，欧盟金融市场准入和经营的法律体系形成于《第一银行指令》和《第二银行指令》的出台之后，特别是伴随1992年的欧盟内部市场的统一进程，欧盟内部相继出台了第二银行业指令、投资服务业指令和第3号保险业指令，分别就银行、证券和保险三业在欧盟内部各成员国自由开设分支机构与提供金融服务方面，实施了“单一护照”制度，对欧盟有关金融市场准入与经营作出了具体而有针对性的规定。本文以下仅限于欧盟银行和证券市场的准入与经营制度的考察，不涵盖保险制度。

EU Financial Market Access & Operation Regime and Its Implications

Han  Long

Regional economic integration is one of the most prominent features in the development of world economy. Many regional economic integration agreements (hereafter referred to as REIAs) contain the regime arrangements for financial market access and operation, the content of which constitutes the regional part in international financial market access and operation system, and which is not only binding on the members of REIAs, but also has important effect on countries beyond REIAs. In enormous regional financial integration arrangements, European Union (EU) is peculiar in many of its measures, drawing far and wide notices.

EU provisions concerning the market access of financial services can be traced as far as to EC Treaty, which requires the free movement of commodities, human resources, labor and capital in European Community (EC). The provisions set forth in the Treaty concerning establishments, services and capital movement apply as general principles to the sectors of banking, securities and insurance. All these laid basis for the financial market integration and the establishment of the regime of financial market access and operation in EC. The formation of EU legal system of financial market access and operation, however, began with the First Banking Directive and the Second Banking Directive, particularly with subsequent EC Investment Service Directive and the Third Insurance Directive adopted in accordance with the process of internal market integration in EC in 1992. These directives adopted the “single passport” system in the free establishment of entities and providing financial services in the member states across EC, and set forth detailed provisions for financial market access and operation. The following of this article only covers the market access and operation regime of banking and securities of EU, excluding insurance.

 

集体认同与欧洲一体化 ——基于建构主义的视角

Collective Identity and European Integration

邱芝   祖强

QIU ZHI   ZU HAI

[内容提要] 集体认同与欧洲一体化是相辅相成，互相促动的。两者既存在因果关系，也存在建构关系。集体认同的彰显和丰富赋予了欧洲一体化强大的发展动力与社会基础，而欧洲一体化的深化与扩展使集体认同不断得以清晰和加强。本文主要以温特的建构主义理论为分析工具，通过对欧洲集体认同的内涵、建构基础与面临困境的反思，探讨集体认同与欧洲一体化之间的互动与建构关系，认识集体认同对欧洲一体化的意义。

[abstract]

The collective identity and the European Integration are complemented each other, mutually actuated, both exists not only the causal relations but also the constructive relations. The demonstration and richness of the collective identity give the European Integration formidable development power and the social basis, the European integration's deepening and expansion enables the collective identity unceasingly to be clear and to be strengthened. This article mainly with the analysis tool of Wendt's constructivism, through the consideration of the European collective identity 's connotation, the constructive foundation and difficult position, discusses the interactive and the constructive relations between the collective identity and the European Integration, understands the significance .of the collective identity in the process of the European Integration.

 

盎格鲁-萨克逊模式与莱茵模式的比较 ——两大模式典型国家经济表现和成因分析

Comparison of Anglo-Saxon and Rhine model

复旦大学欧洲问题研究中心  丁纯

(Prof.Dr. Chun Ding,   CES Fudan University)

Abstract

In order to measure the overall economic performance of Anglo-Saxon and Rhine model in over the past three decades, we have chosen such indices as GDP per capita of citizens, GDP growth rate, inflation rate, standardized unemployment rate and employment rate. After comparison of the economic performance among typical states of two models like Germany, France, U.K, and U.S.A, Differences in economic performance of the two models can be explained by factors such as institutional differences in social welfare(security) system, labor market, banking system, corporate governance, knowledge investment etc, under the shock of globalization, aging waves. In closing, China should foster the strengths of the two models and circumvent their weaknesses in the process of ensuring a sustained strong economic growth.

Key phrases: Anglo-Saxon model, Rhine model, globalization, aging, social security system, labor market, corporate governance

摘要      

盎格鲁－萨克逊模式强调市场经济自身机制的作用，鼓励自由竞争、放松管制，个人主义是社会主流思潮；莱茵模式以社会市场经济为基础，强调秩序性与公平性，以国家政策来约束自由的资本主义，以实现集体利益的最大化。本文从人均GDP、GDP增长率、通货膨胀率、标准失业率和就业率五个指标来分析这种两个模式在近三十年来的宏观经济表现；接着分析经济表现差异的原因，指出了全球化与人口老龄化的冲击、影响，然后主要剖析了两大模式在福利制度、劳动力市场、公司治理、银行体系、知识投入方面差异带来的影响。在此基础上提出了这两大模式对中国经济发展的借鉴之处。

关键词：盎格鲁－萨克逊模式，莱茵模式，全球化，福利制度，公司治理，劳工市场

 

欧盟区域经济发展差异与区域政策

The Regional Disparity and -policy in the EU

冯革群（宁波大学建筑工程与环境学院，浙江宁波 315211）

FENG Gequn, Ningbo University

Abstract: Regional harmonious development is one of the most important objectives which enhance the EU integrity. To facilitate a relative comparison among different region scales, the EU has designated a so-called NUTS system, a hierarchy of regions for the annual statistics. Over the past ten years, the regional development in the EU has converged, stagnated and diverged in accordance to different region scale perspective. The different regional development paths could be accounted for different theoretical explanations. Since the establishment of EU, its regional policy has experienced market orientation before 1970s, government intervene in 1980s, infrastructure investment in 1990s and the ongoing cohesive projects. These regional measures have achieved different regional effects, which have been assessed in the paper. Regional disparity should exist reasonably in which the developed regions should be strengthened which the depressed regions should be encouraged. With the EU further enlargement, the EU will be overburdened and the regional disparity will be increasingly diverged.

Key Words：EU, Regional Economic Development, Regional Policy, NUTS-Regions (Nomenclature des Unites Territoriales Statistiques), EU Eastern Enlargement

 

摘要：欧盟地区区域和谐发展是其一体化进程的重要目标。为此欧盟设计了一整套用于比较区域发展的标准地区统计单元系统。从欧盟过去10年的区域经济发展比较来看，可以得出区域发展差异的缩小、停滞和扩大的三种结果，得出这种不同空间差异格局的原因是由于观察空间尺度的视角不同。而不同区域发展的路径可以用不同的区域发展理论来解释。在平衡区域经济发展和促进落后地区的发展方面，欧盟的区域政策经历了20世纪70年代之前的市场自调节手段，70年代到80年代的政府干预措施，90年代促进基础设施和再就业培训方面的项目以及目前正在扶持后进国家的凝聚基金计划等。这些针对不同目标地区的发展援助政策，取得了不同的区域发展效果。欧盟的区域政策不在彻底消除区域差异，而是在增强创新地区竞争实力不断升级的同时，刺激经济相对落后地区发展的赶超机制。随着欧盟的不断东扩，欧盟区域负担将进一步加大。同时，欧盟成员国之间的经济差异也会出现进一步趋异的趋势。

关键词：欧盟；区域经济；区域政策；标准地区单元统计；欧盟东扩

 

 

欧盟竞争法执行体制 ——历史、现状及对中国的启示

The Enforcement System of EU Competition Law ——History, Present Situation and Revelation to China

王健

浙江理工大学法政学院副教授，法学博士

Wang Jian

摘要：竞争法的执行体制有集中型执行体制和分权型执行体制之分。在历史上，欧盟及其多数成员国竞争法的执行曾经都采集中型执行体制。20世纪90年代末期特别是21世纪以来，欧盟及其成员国特别是英国和德国竞争法的执行体制发生了显著的变化，分权型执行体制逐渐成为主流的竞争法执行体制。然而我国目前提交全国人大审议的反垄断法草案实质上采集中型执行体制。我们认为，欧盟的经验表明，分权型执行体制代表了世界上大多数国家的发展方向，它比集中型执行体制更有利于反垄断法的有效执行，中国反垄断法的有效实施离不开分权型执行体制。

关键词：欧盟竞争法执行体制  集中型执行体制  分权型执行体制  中国反垄断法执行体制

Abstract:

The enforcement of competition law may utilize public resources and private resources. Therefore there are two mechanisms of the enforcement of competition law, i.e. public enforcement and private enforcement. The enforcement system of competition law refers to the role and allocation of public enforcement and private enforcement in the enforcement of competition law. From the perspective of legislation and practice of competition law in various countries, the enforcement system of competition law may be divided into decentralization system and centralization system. Under the decentralization system, public enforcement and private enforcement are equally important and shall cooperate and develop in line with each other. The representative nation adopting decentralization system is the United States. While under the centralization system, the enforcement of competition law is basically through public enforcement, and there is no legislation on private enforcement or no effective development of private enforcement even there is legislation. In the history, the European Union and most of its member states once adopted the centralization system, where the enforcement of competiontion law mainly meant public enforcement, and public enforcement played a dominant role in the enforcement of competition law. In European Union, the EU Commission actually had the exclusive right of enforcement of the EU Competition law. And the enforcement of competition law of EU member states was also the exclusive field for the competition authority in respective states. Since the end of the 20th century particularly the 21st century, the enforcement system of competition law of EU and its member states, especially Britain and German, has changed obviously. Having deeply recognized the importance of private enforcement in the enforcement of competition law, EU and its member states have taken various measures including legislation and judicial judgment to promote the private enforcement of competition law. The private enforcement of competition law has become an inevitable choice for EU and its member states, thus begun to form an integral part of the enforcement system of competition law. And the decentralization system has gradually become the main enforcement system of competition law. However the present draft of anti-monopoly law of China, which was submitted to the National People’s Congress for review, substantially adopts centralization system. We consider that, the experience of the European Union has demonstrated that, the decentralization system represents the trend concerning the enforcement system of completion law of most nations in the world, and is more beneficial to the enforcement of anti-monopoly law than the centralization system, so effective enforcement of Chinese Anti-monopoly Law can not be achieved without the decentralization system.

 

繁荣来自竞争、福利为了大众 ——公平效率关系的欧洲模式及启示

Prosperity through competition，Welfare for all——The European Model and its inspiration for relation between equity and efficiency                 

朱乃新

（江苏省社会科学院 世界经济研究所，江苏南京210013）

ZHU NAI XIN     Academic of Social Sciences of Su Zhou province

摘要：公平和效率关系的世界性难题突显于我国构建和谐社会的发展进程。这个关系的欧洲模式有着现实的和深远的借鉴性。欧洲模式的困境源自国家社会责任的过犹不及，我国当前的着力点是矫正国家经济干预越位和社会责任缺位。科学发展和和谐社会新理念和方略将统领和导引我国经济与社会协调、公平效率兼顾的发展模式创新。

 

 

欧洲治理模式中的合作与强制性合作

上海对外贸易学院 国际经贸学院 张永安

2007年是《罗马条约》订立50周年纪念。回顾欧洲一体化的发展史，可以看到由欧盟为主导的欧洲一体化正在成为一种社会治理模式，对整个欧洲乃至世界的影响是应该引起重视的。在“融合与趋同”基本理念指导下，欧洲一体化已经演变为主导战后欧洲发展的主流。25个欧洲国家（未来几年可能还将增加）以联合的手段走到一起来，在为自己以及整个集团创造更大的发展空间的同时，成员国的经济主权也正在逐步地被挤出，这是在“融合与趋同”理念下一体化发展给各成员国所带来的负面效应。

关键词：欧洲一体化  融合与趋同  合作  强制性合作

 

福利制度创新与经济社会和谐：欧洲的经验

Welfare state innovation and its effects in building a harmonious economy and society: European experiences

王志凯

浙江大学经济学院, 浙江大学劳动保障与公共政策研究中心

Wang Zhikai

School of Economics, Zhejiang University (Hangzhou 310027, China) and

Center for Study in Labour Economics and Public Policy, Zhejiang University

 

［摘要］欧洲福利经济的实践是一种发展的创新，而其在制度上的创新则是欧洲经济增长与社会和谐的动力源泉。建立在社会保险之上的福利制度政治创新，奠定了欧洲和谐劳资关系的基础；福利制度的劳动逻辑和价值提高了公民的劳动参与程度；福利制度的整合创新支持了欧洲劳动力的流动和劳动生产率的提高；“就业第一”的福利制度改革优化了就业的劳动供给结构，铺就了欧洲和谐发展的蹊径。所有这些都支持欧洲的经济增长并促进社会和谐发展。欧洲发展模式，特别是其福利制度创新带来的经济社会和谐发展，是对世界的一大贡献。对中国而言，欧洲的发展模式及经验启示我们：一是要从加快中国社会保障制度的建设和完善入手，营造和谐劳资关系的社会基础；二是提高劳动力在城乡和区域之间的流动性；三是运用社会保障改革与建设全面扩大社会就业；以推进中国经济社会的和谐、持续发展。

Abstract:

The development of European welfare state is always with the accompany of positive labour market policies, this is the rooted reason why Europe could achieve the goal of integrating the sustained economic growth, stable welfare improvement and social employment increase together and see them well matched with each other in a relatively long term of development. This is also the logic basis and economic premise for European community successfully in maintaining and developing a harmonious society in Europe. This paper presents a positive review on welfare state development and labour market innovation in Europe, and aims to draw some lessons for China’s harmonious development. It begins with the introduction of the European political innovation or invention of social insurance launching; this political innovation of European welfare state has laid a foundation for labour and capital relations harmony, and further stimulates the development of economic growth and social harmony. It then explores the labour logic and moral value of European welfare state, constructively comments that this kind of labour logic and value does increase labour market participation in Europe and contributes to economic growth and social development. It then traces the social and economic effects of processing the integrated European welfare state from national level to EU level. This is followed by an examination of issues on pension reforms with counter-product of work-friendly or “employment first” in European welfare state, including transformation of universal and flat rate of negative security benefits like unemployment pension into more work related or income related mechanisms like education and professional training, and etc. The paper concludes that there is the same value of social harmony and economic development in both Chinese society and European society, learning lessons from European experience, we need to work hard in continuously and progressively constructing and perfecting China’s social security economy, creating a harmonious foundation and environment of labour and capital relations, so as to successfully push forward the healthy development of economic growth and social harmony.