Posted Work in the European Union: Towards a Highly Competitive Social Market Economy?

Abstract This paper examines the EU's legal framework on the posting of workers—most notably Directive 2018/957—in light of the broader structural tension within European integration between economic freedoms and social protection. It argues that, although the revision marks a shift towards a more worker‐oriented approach, the underlying legal and political conflicts remain unresolved. Through an analysis of case‐law, legislative developments and empirical trends, the paper shows how the posting regime, while seemingly narrow in scope, acts as a magnifying glass for deeper questions about the EU's identity, legitimacy and capacity to realise the vision of a ‘highly competitive social market economy’ enshrined in Article 3 of the Treaty on European Union (TEU). The paper concludes that while recent reforms represent a step forward, they also reveal the limits of EU‐level regulation in balancing market integration with effective labour protections.