This article analyses the views of European Works Councils expressed by senior managers of Japanese multinational companies. It reports the results of a survey conducted in 1998, in which a substantial majority of managers gave a fairly favourable overall evaluation of the institution. However, many felt that it would give employees unrealistic expectations, that the financial costs were a burden for companies and that its constitution implied a mismatch with decentralized corporate structure. A majority thought that it would not seriously affect corporate decision-making or companies' competitive edge.