Abstract
The 1980s proved to be a tough decade for European welfare states. The post-war ‘welfare consensus’, which perhaps had never been quite so strong or coherent as many contemporary historians and commentators had assumed, was finally laid to rest. The five great spectres identified by Beveridge want, disease, ignorance, squalor and idleness had not been humbled by public welfare provision despite its ever growing scale and cost. At the beginning of the 1980s the OECD published a report on The Welfare State in Crisis which pointed out that as welfare state expenditure had roughly doubled as a percentage of national income in most west European countries since the late 1950s, so economic growth rates had plummeted. The European welfare states appeared to produce few positive welfare benefits, and this minimal achievement was produced at enormous cost which was to the detriment of overall economic growth and societal well-being.
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