The present economic downturn has tried the Nordic and Continental states with extended welfare systems less than the Anglo-Saxon ones. This originates mainly in the automatic stabilisers which have been working with full blast with the effect of smaller decline in private consumption in the...

Majority of the literature accept the fact that globalization affects the welfare state. According to te great mass of these authors, governments face a double jeopardy, demand for expenditures grew but at the same time the sources of the receipts diminished. The welfare states responded unlike...

Theories on the relationship of globalization and welfare state can be classified into three groups. Globalists hold that globalization threatens welfare state and the anticipated result is its retreat. Sceptics hold that globalization does not constrain the authonomy of national policy....