It is often argued that European welfare states, with regulated labour markets, relatively generous social protection and relatively high wage equality, have become counter-productive in a globalised and knowledge-intensive economy. Using in-depth, comparative and interdisciplinary analysis of employment, welfare and citizenship in a number of European countries, this book challenges this view. It provides: an overview of employment and unemployment in Europe at the beginning of the 21st century; a comprehensive critique of the idea of globalisation as a challenge to European welfare states; detailed country chapters with new and previously inaccessible information about employment and unemployment policies written by national experts. Europe's new state of welfare is essential reading for students and teachers of social policy, welfare studies, politics and economics.