The social agenda of the European Union is shifting towards broad social initiatives that align social and economic objectives with the promotion of employment. This calls for an action framework that allows social dialogue and political deliberation to inform and complement legislative action at all levels. The debate however has been dominated by advocates of market-based solutions and their opponents, the supporters of traditional welfare states. This book, to break with this sterile stalemate, demonstrates how an employment-oriented social policy in Europe can develop from a new, different set of policy principles, specifically 'a capability approach'. Taking inspiration from the work of Amartya Sen, this book focuses on the effective freedom people need to achieve their goals in life and work. The result of ongoing collaboration between researchers and social actors, it will appeal to social scientists, students, policy makers and all those concerned with the building of Europe. Table of Contents 1. Introduction: Europe and the politics of capabilities Robert Salais and Robert Villeneuve Part I. Products, Territories and Economic Activity in Europe: 2. Europe tested through its products: The Renault-Vilvoorder affair and its implication for industry and employment politics Claude Didry 3. Competences oriented-logics and the politics of unemployability Benedicte Zimmermann 4. Regional capabilities and the European employment strategy Martin Heidenreich 5. The territorial pacts in Italy: the competitive corporatism assumption in question Serafino Negrelli 6. Mobilising local capabilities for a European economic project. The case of Marseilles Pierre-Paul Zalio 7. Employment and social dialogue: at the European level. A different approach to governance of territories Robert Villeneuve Part II. Assessing EU Procedures and European Initiatives: 8. The European employment strategy: from ends to means? Gilles Raveaud 9. Regional growth, national context and the Europe