The European Single Currency Project and the Concept of Convergence for European Welfare States – The Ideal and the Reality

Abstract

AbstractUsing a country comparative case based methodology that combines the methods of Cluster Analysis and Qualitative Comparative Analysis, this article examines whether there is any quantitative evidence that countries which are members of the euro currency have experienced a convergence of the outputs and outcome of the European welfare state for euro member countries. The analysis concludes there is little evidence of a holistic euro based convergence of either welfare outputs or outcome. It is argued that outputs such as full employment, equity of health care provision, poverty reduction and educational attainment might reasonably be expected to converge in the longer term, but only if the euro crisis results in a much more planned and coordinated interventionist policy approach to the macro political economy. An outcome, however, such as subjective well‐being, is potentially influenced by other historical and cultural factors and is only partially determined by macro political economic policy.