Set up in 1997, the European Employment Strategy (EES) aimed to create favourable conditions for achieving higher employment by coordinating national labour policies. The later reformulations of the strategy (in 2003 and 2005) have not changed the underlying orientation, based on measures affecting supply, while too little attention has been given to the interaction between developments on the labour market and the characteristics of the social model, on the one hand, and the macroeconomic impact on the other. This essay has two aims: first, to demonstrate the constant concern on the part of the DG Employment and Social Affairs to combine flexibility and inclusion, in response to the need to preserve the “European social model”, and, secondly, to show how the EES has been an essential condition for the functioning of the single mechanism on which the convergence policies of the member countries of the European Monetary Union has been based, represented by the flexibility of prices and salaries. The limitations of this mechanism are discussed in the last part of the article.only subscribers can see the full article