European Journal of Science and Theology, June 2013, Vol.9, Supplement 2, 147-156 _______________________________________________________________________ THE WELFARE STATE CRISIS A CASE STUDY - ITALY Sabin Drăgulin * University of Bucharest, 24 Sfântul Ştefan, 023997, Bucharest, Romania (Received 20 March 2013, revised 11 April 2013) Abstract The welfare state is a current topic because its components directly affect the standard of living of every citizen. Severe economic crisis that started in 2008 embarrass governments that are called to maintain or even develop the welfare state. Research hypothesis underlying the analysis of this study is that the Italian welfare state development in the last three decades disregarded domestic, objective economic realities. In the first part of the study, the author undertakes a theoretical analysis of Italian welfare state model. In the second part, based on empirical data collected from the National Institute of Statistics (ISTAT) in Italy, were analyzed three independent variables: health care, social assistance and social benefits systems; and, respectively, a dependent variable – level of indebtedness of the Italian State. Following the analysis of these variables were found several conclusions: the welfare state has received significant financial resources during this period, but the growth rate of these investments was not correlated with that of GDP development and massive capital allocations in this area had a major and negative impact on the country‟s indebtedness. The corollary of this conclusion is that it must identify a new paradigm of welfare state that does not endanger the personal security of individuals, but allowing at the same time the sustainability of the system. Keywords: Italian welfare state, public debt, gross domestic product 1. Introduction Already installed among the main themes of the public space, the issue of „welfare state‟ – in its established Anglo-Saxon significance – is not a late-date phrase anymore. Nevertheless, in case one might need a precise definition for it, the expression shows enough waywardness. Once the obsession of proper definitions discarded, it is easier to point at the fact that „welfare‟ indicates a set of various means provided by the State, in order to ensure its citizens a decent life standard. Consequently, this is accomplished through free access to mass- education, through a system of medical insurances and social protection * E-mail: dragulinsabin@yahoo.com