The Place of Labor Rights in the European Union’s Environmental Policies

Abstract

This article analyzes the potential impact of the European Commission’s proposed “European Green Deal” on labor rights, in particular on the rights of workers in lower-income EU Member States. It focuses on environmental measures, already part of the EU’s existing environmental policies and further contemplated in the Green Deal, which prohibit or tax certain polluting production processes. Such measures, insofar as they apply uniformly to traded-good industries, are likely to make firms in lower-income EU Member States less competitive and harm their workers’ rights to work and to fair wages. Thus, even though these environmental measures are worth pursuing for the benefits they procure, the distribution of their costs is likely to run afoul of egalitarian norms. This article puts forward an institutionalist approach to trade theory which recognizes that competitiveness is legally constructed. It argues on the basis of that theory that lower-income countries should be allowed to adopt ambitious industrial policies and subsidize their firms to insulate workers from the disruptions caused by added environmental regulatory costs. More broadly, this article presents an agenda to pursue ambitious environmental transformation while remedying, or at least not worsening, inequalities between workers and citizens in the EU.