Argues that globalisation threatens the ability of states to continue providing for the economic and social security of their citizens. The neo-liberal Zeitgeist that accompanies globalisation has now carried over to the social democratic parties of Europe, which have moved toward the political centre. Convergence criteria imposed by the European Union to introduce monetary union have added to the downward pressure on European welfare states. The German Sozialstaat predates the development of modern welfare states and is thus firmly anchored in the political culture of the day. (Original abstract - amended)