Responsive social policies and ‘the Great Recession’

The 2007–2012 global economic crisis, even referred to by some as ‘the Great Recession’ (see Grusky et al, 2011), formed an exciting challenge for European welfare states. Firmly rooted in institutions that have evolved since the start of the 20th century and been transformed by almost three decades of austerity, the European welfare states will undoubtedly again undergo significant changes in response to the challenges of this recession (see also Hemerijck, 2009). But even before the crisis, welfare states in many European countries were already under pressure. Not only concerns about financial sustainability, but many other factors also have contributed to the ongoing debate about the design and implementation of welfare policies in Europe and beyond. We will give four examples of these factors.

First, the relationship between government and its citizens is under quite some pressure these days. If the outcomes of polls, the results of elections and the public's responses in written and electronic media to the government's conduct in many European countries are anything to go by, one would even be inclined to think that the breach of trust between citizens and public administration is a fact. Morlino (2009), for instance, spoke of a process of ‘delegitimisation’ of the specific institutions in modern societies. These tensions between government and citizens extend to virtually every policy area, including social policies.

Second, the policy performance of modern day welfare states is often contested. For one thing, preservation of the arrangements of the welfare state demands great sacrifices from its citizens. A large proportion of collective finances is expended on these arrangements. Citizens thus spend a large part of their gross income paying for the welfare state. At the same time, the welfare state offers its citizens historically unprecedented protection against the risks of illness, old age, disability and unemployment, among other things. Citizens have never had so little to worry about regarding their income in case of illness, unemployment or old age as experienced in the Western societies of today. Still, there are in public debate the recurring questions of whether the welfare state is doing enough, or perhaps too much, whether it is effective, not too expensive, or in fact throttling social dynamics.