Introduction

This introduction frames the book's core puzzle: why did two structurally similar countries adopt different strategies to reduce labour market dualisation in the decade following the sovereign debt crisis? It advances the central claim that the composition of the governing social bloc determines the orientation of reform, while the choice of decision-making arena and the evolving social governance of the European Union (EU) shape its breadth and depth. The choice of arena is endogenous to bloc priorities: executives strategically select between tripartite concertation and parliamentary routes considering anticipated vetoes. The EU is treated as a conditional external selector, whose alternating ‘liberal' and ‘social' configurations constrain or enable change. This chapter provides a concise overview of the distinction between competitive solidarity and inclusive solidarity, offering a synthesis of their key characteristics. It highlights their observable implications across four key domains: employment protection, minimum-wage determination, platform work regulation, and the regularisation of precarious employment within the public sector. It justifies a most-similar systems design comparing Portugal and Spain from 2015 to 2025, explains case selection, and details the evidence base used in the book. It sets scope conditions and previews the structure of the book.