The European welfare systems, established after the Second World
War, have been under sustained attack since the late 1970s from the
neoliberal drive towards a small state and from the market as the
foremost instrument for the efficient allocation of scarce
resources. After the 2008 financial crash, Europe's high tax and
generous benefits welfare states were, once again, blamed for
economic stagnation and political immobilism. If anything, however,
the long decade of the Great Recession proved that the welfare
state remained a fundamental asset in hard times, stabilizing the
economy, protecting households and individuals from poverty,
reconciling gendered work and family life, while improving the
skills and competences needed in Europe's knowledge economy and
ageing society. Finally, the spread of the Covid-19 pandemic has,
unsuprisingly, brought back into the limelight the productive role
of welfare systems in guaranteeing basic security, human
capabilities, economic opportunities, and democratic freedoms. In
this important contribution, Anton Hemerijck and Robin
Huguenot-Noel examine the nature of European welfare provision and
the untruths that surround it. They evaluate the impact of the
austerity measures that followed the Great Recession, and consider
its future design to better equip European societies to face social
change, from global competition to accelerated demographic ageing,
the digitalization of work and climate change.
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