Welfare systems reduce inequalities and ensure that the overall quality of life is high. Life expectancy now in the 15 states of the European Union has become very high, is even higher on avverage than in America. The social justice aspect of the European Social Model is important, Without it, social cohesion and political stability would be hard or impossible to achieve. One does not have to look far outside the European Union to find examples of countries where a wide gap between the haves and the havenots is a root cause of crime, social unrest and political instability. There are, of course, big problems.
Welfare systems can be overprotective - and many times they are overprotective.
Unemployment benefits, for example, may be too generous and give the unemployed person no incentive to look for and accept work. I believe we should modernise and reform it, to cope with the challenge of the new century. One of the major challenges is the problem of an aging population. In 2025 we shall have an extra 37 million aged over 60 that will live in the present European Union of 15 states. The most part of people between 55 and 60 years is retired now.