The first part of this paper gives an overview on the difficult preconditions of a European social policy by analysing the different models of market economies ('varieties of capitalism'), types of welfare states and systems of labour relations within the EU. These different types of market economies form the social background for building up a common European social policy and at the same time are under the pressure of internationalisation of capital and the restructuring of finance markets. In the second part the authors outline the five pillars of an upcoming European social model, although they deny the existence of a closed system of social and economic regulatory mechanisms designed to correct the operation of markets. Yet, what exists in all western European member states is a comparatively high level of welfare state protection, and, at the European level, a certain number of elements for the development of a specific welfare state framework has been established.
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