This article analyzes how the EU's vocational education and training (VET) policy is reflected in domestic reforms in Germany and Austria. It perceives Europeanization as a heuristic concept to disentangle a twofold process of institutional change: The first process, the "Europeanized" arena of change, concerns change initiated by the reactions of domestic actors to EU initiatives; the second process of change - the "domestic" arena of change - concerns the ongoing incremental endogenous change in domestic institutions beneath and independent from the Europeanized arena of institutional change. This procedure allows us to differentiate between two modes of Europeanization: In Germany, Europeanization occurs as reform policies and politics; in Austria, Europeanization occurs more as institutional change by default, hence without strategically enacted reform initiatives shaped by the EU and as domestic institutional change that occurs anyway. The article combines the case-oriented method of difference with process tracing. © 2009 Wiley Periodicals, Inc.
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