The Welfare State in the 1990s is the subject of intense debate by economists, sociologists and political scientists. Professor Atkinson begins by setting the argument in the context of inequality and poverty in Europe. The role of the existing Welfare State is then described, especially retirement pensions and unemployment benefits. Finally, he suggests ways by which social security may be reformed. The case for targeting, a basic income and the Social Chapter are discussed as they apply to British policy in a European context.