Since the 1980s, global financial integration and the rise of neoliberalism have significantly changed the terrain on which European social democratic parties operate. However, fierce debate persists over the evaluation of these changes. Some observers—from widely differing political standpoints—insist that social democracy and the free movement of capital across national boundaries are fundamentally incompatible. It follows that the only options for social democratic parties are either to embrace neoliberalism and dismantle much of the welfare state or organize concerted action to reshape the global financial architecture. An opposing group of analysts are equally adamant that while the terrain has certainly become more difficult, it is still possible for Social Democrats to preserve much of the welfare state and even launch new policy initiatives.