Welfare Reform in Continental and Southern Europe: An Overview of Challenges and Strategies

Abstract

Since the early 1990s many European welfare states have introduced reforms to their systems of social protection, in response to significant demographic and labour market challenges. This paper provides an overview of these diverse policy responses in a range of Continental countries (France, Germany, Belgium, Luxembourg, the Netherlands and Austria), as well as in a range of Southern European countries (Italy, Spain, Portugal and Greece). The first part of the paper surveys the social and economic environment for welfare state reform, including recent and prospective labour market and demographic developments, trends in the level and distribution of social expenditures, as well as developments in income inequality and poverty. The paper then reviews policy responses from a broad perspective, looking at reforms to pensions, support for people with disabilities, family assistance, support for the unemployed, and minimum income protection programmes (social assistance). The paper concludes with a discussion of the similarities and differences across these countries in these challenges and in the social policy responses. Show more