The paper reviews recent changes in the institutional conditions ofa European social policy, especially the new codecision rights of the 'social partners' under the Maastricht Social Protocol. To assess the potential of the new institutional framework to add a meaningful social dimension to the integrated European market, the paper places Maastricht and its aftermath in the context of both the history of social policy as well as the overall institutional structure of the European Community. Drawing on theory derived from the study of neo-corporatism, the paper argues that the key for a productive 'social dialogue' rests with business; that business has no incentives to promote an activist, market-correcting social policy at Community level and will therefore likely use its codecision rights to delay or prevent legislation; and that neither the unions nor the European Commission, the incipient European Community executive, have a capacity to make business change its strategic calculation.
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