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The Maastricht Treaty, Competitiveness, Labour Markets and the UK economy INTRODUCTION Since the Single European Act of 1986 social and economic cohesion of member states has been a stated objective of the European Union (EU); "Social progress is possible only through economic success, but equally, high social standards are a vital part of building a competitive economy" (Commission of the European Communities, 1993, p13). This notion originated from a concept, proposed by the French President in 1981, of L'Espace Sociale (literally translated as 'social space')(Swann, 1992). It was adopted by the President of the Commission, Jacques Delors, who saw it complementing the idea of a 1992 internal market; contending that some degree of equality in social standards was desirable in an increasingly competitive environment otherwise those countries with lower standards of social protection would undercut those with higher standards (Swann, 1992). The idea was formally proposed as the Community Charter of Basic Social Rights...

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