HEALTH-CARE REFORM IN EUROPE

The European welfare states are currently struggling with tremendous b udget problems. Most debate appears to be concerned with how to cut he althcare costs. Unfortunately, limiting the state's costs, rather than enhancing the people's wellbeing, has become the prime focus of new h ealthcare strategies in the European welfare states. The result has be en a reduction in the quality and availability of healthcare services and a diminishing contribution to medical innovation by most European countries. Abandonment of the 'pay-as-you-go' financing system is the only solution to increasingly unsustainable welfare state healthcare s ystems. A system financed by a capitalisation mechanism would be prote cted from the increasing costs associated with demographic evolution, while providing all members of society with the opportunity for afford able healthcare coverage.