Wednesday, 19 December 2012
Financing social security in the EU: Business as usual?
an article by Norman Wagner (Austrian Federal Chamber of Labour) published in International Labour Review Special Issue: The Crisis, Inequalities and Social Policy in the European Union Volume 151 Issue 4 (December 2012)
This article assesses how well welfare models with different financing mechanisms cope with a major financial crisis.
It focuses on five EU countries, which represent different welfare models. It also analyses how the crisis and the associated stimulus or austerity measures changed financing, revealing a regressive impact.
It demonstrates that, in the short- or medium-term, contribution-based social systems have more stable public finances during a recession than tax-based systems. That said, the corporatist/continental welfare model seems most likely to remain stable in the long run, in so far as it focuses on keeping employment – the system’s main source of revenue – stable.