Abstract. Welfare-state European model has been profoundly affected by the economic crisis. In this context, most of the EU member states decided to respond by undertaking short run policy measures. Government spending has been extended in order to create new jobs and to stimulate economic recovery. The fact that the EU member states are still facing the crisis suggests that the policies implemented were inefficient. Moreover, EU officials seem trapped in a vicious circle dominated by the crisis growing effects and their own commitments to bring back economic recovery. This study emphasizes the policy measures’ inconsistencies and, as a consequence, the failure of economic recovery initiatives.

Keywords: economic crisis; welfare state; budget cuts; financial stimulus; economic recovery.