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The Welfare State in Europe

Although in Europe there continues to be a large degree of consensus that it is the responsibility of government to ensure that nobody who is poor, sick, disabled, unemployed or old is left deprived, there are mounting calls to roll back spending on the welfare state. Two main charges are raised: that it fails to achieve some of its main objectives, and that it is responsible for a decline in economic performance. Another charge is that it was conceived in a period very different from the present one and is not anymore adapted to the current realities. In this book, we intend to provide a balanced and informed analysis of these charges as well as some thoughts regarding the prospects of the welfare state in an increasingly integrated world. Written by two economists whose concern is both equity and efficiency, this book gives a set of answers to a number of important questions regarding the current social situation of European countries, the performance of the welfare states and the reforms that should be undertaken. It shows that the overall performance of the European welfare states as regarding its main objectives is satisfactory. There are differences across countries, with the Nordic countries leading the pack, but these differences seem to decrease. The book finally deals with an issue that is left unresolved and calls for some fundamental changes in social policies, namely the social divide that has been on the rise in Europe over the past decades and that hampers social cohesion.