Social models in Europe

There are different social models in Europe: the Anglo-Saxon, the Nordic, the continental and the Mediterranean model. There are great differences between the models and within each model.

The Anglo-Saxon model is characterized by limited state-coordinated social benefits. According to the neoliberal tradition of Great Britain the individual is responsible for preventative measures. The state only dampens the greatest poverty. By contrast, the Nordic system is characterized by a very active state which provides a high social security level that is financed by high taxation. The state intervenes actively in the labour market by employment incentives. Similar is true for the continental model which provides support by public social insurances. The Mediterranean model shows a high employment protection and at the same time only little support of unemployed people. The biggest part of expenditures goes to the financing of pensions.

As different the models present themselves in their design, so different are their effects. According to several studies the Scandinavian countries have the highest degree of social justice in Europe. In these countries the chance to escape poverty is considerably higher than in Anglo-Saxon or Mediterranean countries. Compared to Germany or France countries like Sweden turn out to be far ahead of their neighbouring states. Continental models provide a high standard of social justice, but countries like Germany lag behind in terms of their cost-benefit equation.

(Source: Parität EU-Report 4/2005)