Introducing New Elements to European Welfare Regimes : A Case for Fiscal Federalism

One might observe some stability of the basics of the typical welfare state models which were laid out by Esping-Andersen and elaborated on in further studies. However, these stable institutions are not immune from the influence of external destabilizing factors which force institutions to transform (primarily during crises), with the overall stability of the system remaining unchanged. With the research having confirmed that foundations for identifying models of the welfare state in European countries still persist, the question arises if they are still relevant in terms of tackling the ongoing crises and regarding the current state of society. Presumably, it is more promising to refocus the analysis of the effectiveness on fiscal federalism, since fiscal decentralization can contribute to a more effective distribution of goods and can expedite economic growth