The paper discusses the possible implications of the challenges facing the "European Social Model" (ESM) caused by the European Monetary Union (EMU) and the enlargement of the EU to include central and eastern European countries. The strains produced by the two challenges on the European welfare...

The debate on automatic stabilizers for the Euro area is definitely on the agenda. Analytically, the case for a stabilisation capacity is compelling; politically it is an uphill battle. We therefore need a careful exploration of different scenarios and a thorough understanding of how they fit...