Flexicurity – a prospect for European labour markets?

In this paper author analyzes the new proactive labour market policy concept – flexicurity. The term flexicurity itself is a portmanteau of flexibility and security. This concept is a welfare state model with a pro-active labour market policy. The model is a combination of easy hiring and firing (flexibility for employers) and high benefits for the unemployed (security for the employees). It was first implemented in Denmark and the Nether-lands in the 1990s. In the first part of paper the definition of the concept is given and the main functional instruments are analyzed. Author examines flexicurity as an integrated policy for labour markets and social security of individuals. The well known Wilthagen matrix is employed to stand as the key-guidance for analysis. The second part of the paper examines two most successful and foregoing national flexicurity models – the “golden triangle” of Denmark and “polder system” of the Nether-lands’ decentralised labour market policy. Both models enjoy great positive results in liberalising labour markets and ensuring well balanced flexibility – security nexus. But astonishing success in both countries was achieved by using completely different approaches and methods. The third part of this paper concentrates on the European prospects. The main points of two national models are raised again here and the general idea that the policy concept of flexicurity can be successfully implemented only employing the trust and cooperation of social partners is emphasized. Moreover a short glance to Lithuania’s prospect is given