The debate over the Open Method of Co-ordination has reopened discussion of the role of 'soft law' in the process of European integration. This paper outlines the debate ov er the relative value of hard and soft law in EU social policy, explores the operation of non-binding objectives and guidelines in the European Employment Strategy, suggests a number of reasons why 'soft law' might be effective in this area, and explores the possi- bility for productive combination of hard and soft law measures.