Present conditions that now warrant a change in the social model of Europe.

Suggested answer
Globalisation has been intensifying competition for markets around the world. With the end
of the general economic growth after the first oil crisis, welfare states are hit by crisis. At the
same time, in recent years, growth rates of France have not lived up to expectations. This has
made certain that in a more competitive environment, Europe can no longer afford the luxury
of strong welfare measures. The European states must cut spending on social protection and
ease regulation for business if it is to compete with other countries.
A large percentage of social spending in the European states goes toward supporting labour
market policies such as unemployment benefits and pension systems. With the moral strength
of an aging population and the increase in life expectancy, and with the financial pressures,
rising retirement ages is going on across many different European countries. Another problem
for France, is the rigidity of its labour market, it is difficult to fire workers, making it difficult
to hire new ones. Strict labour laws are preventing companies from restructuring
properly.France tend to attract the wrong kind of immigrants, those who ineffective on the
system, while the most dynamic immigrants travel to countries where they pay less tax and
thus receive more in return for their work and efforts. All these problems have inhibited the
economic growth necessary to sustain the welfare state.
Keeping the retirement age constant in spite of higher longevity, Europe is automatically
expanding the role of social security in the economy. Improvements in health and medicine
lead to a situation in which people spend longer portion of their lives dependent on the
government for income.The welfare state has created dependent public forces that are
incapable of finding value in life and unable to enjoy life without responsibility for ones
actions and choices.International competition makes a welfare state economy less
competitive because of the high tax rates in its surrounding growth. New Economy, being
driven by innovations in the information and communications fields, has given rise to an
entirely new phase of economic development.
The riots in France emphasise just how unreasonable the Europe's economic model has
become. For decades government policies across old welfare model have put a higher value
on social protections and job security than on growth and job creation.The reason for
Europes current decline is its obsession with social security that has created rigid social and
economic systems and that are extremely difficult to change. And this obsession with social
security is in turn connected with a fear of the future that lead to the rejection of the European
Constitution in France in 2006.
Conclusion
The slow growth and poor employment rate in the European countries through the 1980s and
early 1990s has led many to put the blame on the welfare state. The productivity, employment
and fiscal policy impacts of the European welfare state tend to get collocated together.
Economic growth and the preservation of equality appear to be conflicting goals. Generous
social programs are perceived as a major factor responsible for the poor growth record.