Institute of European Studies

This paper focuses on the deep transformation of the Portuguese state under democracy and charts the development of very substantial welfare state. It examines the very substantial investments in social protection, social transfers, education and health and finds remarkable results in some areas but only partial success in others.  The paper also looks at changes in employment and the growth of the state as a provider of jobs.  The paper then turns to an analysis of the current crisis, examining both long-term factors and current dynamics asPortugal turns from initial stimulus to austerity to structural reform.