Crisis of European social model since its reform in 2006

This diploma thesis deals with the evaluation of the reform of the European social model through the New Social Europe initiative created by the Party of European Socialists. The theoretical part first explains the concept of the welfare state and its types. Then it deals with the characteristics, way outs and distribution of the European social model. Finally, it zooms in the importance of the social market economy and the Washington Consensus. An important finding in the practical part is the analysis of the convergence of economic variables created from the goals of the New Social Europe. Based on the observed values, only three of the nine indicators show a slight convergence. After the accession of Eastern European countries to the European Union and the debt problems of the PIIGS during the Eurozone crisis and the generosity of the Nordic countries create differences between the various social models. Today the biggest challenges are population aging, decreasing labor productivity, income inequality and the COVID-19 pandemic. It has a unique opportunity to transform the European social model into a new form with the adopted proposal to mitigate the negative effects in the social field. The modernization of social spending, single insurance for citizens or further action by the European Union can help solve the crisis of the European social model.