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For three decades (1950-1980), the building of the welfare state coupled with the process of EC integration was the keystone of the west European political economy. The advanced capitalist societies have witnessed far-reaching changes. Welfare Keynesianism was intensively restructured, while the Maastricht treaty redefined the nature of European politics. There are now both new and deep uncertainties about the welfare state and Europe. This text provides an analysis of these shifts and trends and will address the key emerging questions. At the member-state level, the nature and scope of social policy have shifted irreversibly. The differing trajectories of restructuring followed by the classical welfare regimes of western Europe are extensively analyzed.