This chapter examines to what extent social policies in Southern European countries were motivated by the notion of social dumping rather than the concept of catching up. It presents an examination of the concept of social dumping. The chapter considers a quantitative approach to social dumping behaviors. It discusses the evolution of public social expenditure and financing mechanisms reflect the adoption of a social dumping strategy in Southern European countries. The chapter explores program specific changes qualitatively, that is, it deals with the most important extensions and cutbacks of welfare state schemes. The social dumping argument is probably as old as the European Economic Community (EEC). The chapter analyzes the evolution of social expenditure, financing mechanisms, and labor costs in Southern European countries as compared with those of other European Union (EU) member states, as well as EU economic transfers. It explains why expansionary tendencies have outmoded restrictive ones.