ABSTRACT

The provision of various forms of welfare service by public authorities has been a key aspect of economic and social development in Europe since 1945. Over the past 50 years social expenditure in European countries has more than doubled in scale, such that it now typically accounts for around 50 per cent of public expenditure and over 25 per cent of GDP. This reflects a massive increase both in the supply of services by government agencies and in the extent of public income transfer programmes. It means that European governments have acquired direct and powerful influence over the living conditions of all citizens. Everyone in Europe today is closely tied to the nation state in which they live by their liability to pay taxes and social security contributions, and by their entitlement to receive services such as education and health care, and cash benefits such as pensions.