Recent comparative studies on welfare state changes in Europe have focused on the structural constraints that social policy makers face. These constraints are seen to set the reform agenda for national welfare states. First, there is a widespread consensus that, in the context of economic globalisation and European integration, there is little room for budget expansion and that all changes have to be cost neutral (Pierson, 2001). Second, socio-demographic trends – population ageing, the change of household structure and an increase in female employment participation rates – are seen to increase the demand for individualised systems of social protection and for more care at a time when supply is declining (Daly and Lewis, 1998). Third, welfare state regimes themselves are identified as factors that contribute to country-specific problems and determine reform options (Esping-Andersen, 1999, pp 153-4; Pierson, 2001, pp 99-100). As a result of these constraints, reforms to ensure the welfare state's sustainability are seen to be necessary.

Challenges for policy change

The ageing of the population and fertility decline are among the main constraints identified and better policies that help carers to combine care and paid work are regarded as essential (Hantrais, 1999; EC, 2000, p 8; Pierson, 2001, pp 94-5). States that do not make sure mothers have the opportunity to be employed, that do not protect them against social risks, and that do not provide a family-friendly environment are undermining their societies’ long-term stability (Esping-Andersen, 1999, p 174; Castles, 2003).

Social protection for carers – that is child benefits, maternity allowance, parental leave provisions, childcare and elderly care services, and care-related pension rights – is indeed one of the few areas where we can see an increase in provision across EU member states (Ginn and Arber, 1992; Daly, 1997; Daly and Lewis, 1998; EC, 1999, p 20, 2000, p 21; Randall, 2000b, pp 357-62; Bonoli et al, 2000, p 45). In the 1990s, there has been a shift within social budgets, states are spending more money on the family, that is on the support of all care related activities of individuals (Eurostat, 2002, p 5).