REFORM OF THE EUROPEAN SOCIAL MODEL IN THE EU

The European Social model is currently facing the deepest crisis since its establishment. Nevertheless, speaking about European Social Model, we have are several types spread in Europe. In the article we will therefore focus only on the conservative type of the model, which is applied in the most populated EU member state such as Germany and France; further also in Austria, Belgium, and Luxembourg as well as in the Netherlands. Expect the Netherlands; the reforms are required to guarantee the long-term sustainability of the model due to the external and internal changes such as globalization, population ageing or structural unemployment. Next to the necessary measurements such as pension and health care reform we consider for the most essential to improve the flexilibity of their rigid labour markets. The article focuses on the development of the social model since its establishment and of the analysis of the employment legislation protection index (EPL index). The aim of the article is to describe the development of conservative type of the model and the labour market flexibility which we consider for essential for boosting the employment rates and long-term stabilizing the model.