This book analyses the main problems in the functioning of the welfare state and possible actions for its reform. Focusing on the European Union, it looks at the achievements of and challenges to the welfare state as we enter the 21st century.The authors consider the general problem of redistribution and how to make it more efficient, by reducing huge benefits and tax disincentives that individuals encounter in different life periods or life choices. In addition, they analyse issues such as: economic effects of the welfare state mechanisms for improving incentives in the welfare state implications of Economic and Monetary Union for the welfare state options in pension funding impact of ageing on the pensions systems in the European Union< detailed projections of social expenditure The Welfare State in Europe will be essential reading for those working in the areas of public administration and finance, European studies, social policy, economics and political science. In its provision of policy suggestions it will also be welcomed by policymakers and government advisers.