The end of the twentieth century saw an unprecedented coincidence of electoral success for social democratic parties in western Europe leading to intensive discussion on the future of this new European left. The debates often centred on the notion of a 'Third way' and generated major expectations for policy change among social democratic politicians and voters. The authors collected here examine the recent social and employment policies of these progressive parties, looking for change in the guiding principles of policy and on actual policy decisions. They show how the maxims of demand management and egalitarianism have been replaced by social investment and equality of opportunity and demonstrate the full extent of convergence on policies such as employment maximization, the containment of social expenditure and a shift towards a social investment welfare state.

1. Social Democracy in Europe: Renewal or Retreat? Martin Powell 2. Policy Changes of European Social Democrats, 1945-1998 Andrea Volkens 3. Models of Citizenship and Social Democratic Policies Dietmar Braun and Oliver Giraud 4. Social Policy in Belgium and the Netherlands: Third Way or Not? Renaat Hoop 5. The Portuguese Socialists and the Third Way Marina Costa Lobo and Pedro C. Magalhaes 6. Turning Ideas into Policies: Implementing Modern Social-Democratic Thinking in Germany's Pension Policy Martin Hering 7. The Social and Employment Policies of the Jospin Government Ben Clift 8. The Third Way in Welfare State Reform? Social Democratic Pension Politics in Germany and Sweden Karen Anderson and Traute Meyer 9. Why do Social Democratic Parties Change Employment Policy Positions? A Comparison of Austria, Germany and the United Kingdom Monika Feigl-Heihs 10. From 'Eurokeynesianism' to the 'Third Way'. The Party of European Socialists (PES) and European Employment Policies11. Social Democratic Party Policies in Europe: Towards a Third Way? Giuliano Bonoli