welfare state

Europe's Bankrupt Welfare State

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The euro survived 2012 intact, and once again Europe's leaders are declaring victory in the fight to preserve the single currency. In a speech in Portugal Monday, European Commission President Jose Manuel Barroso said the existential threat to the euro was a thing of the past. If only.

Mario Draghi's offer last summer to buy unlimited quantities of government bonds to keep yields under control has certainly calmed down the bond markets in Spanish and Italian debt. The ECB President has achieved this even without so far having to act on the promise.

But the euro-zone unemployment numbers out this week are a reminder that the euro crisis is not so much over as quiescent. Joblessness in the single-currency bloc hit a record 11.8%. Youth unemployment stands at 24.4% and is above 50% in Spain and Greece.

From Welfare State to Social State.

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V. Conclusion Individual Responsibility and Effective Compassion

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