High water against the dikes

This research has assessed the way different welfare state types responded to the economic crisis. These collided in multiple ways. In first instance, social policies functioned as a buffer against the economic downturn. Later on in the process, they became subject of retrenchment when governments tried to control fiscal pressure. By doing so, confirmation is found for the neo-­‐ functionalist hypothesis, which argues that a fiscal deficit can function as problem pressure for social policy change. Our case study analysis of processes in Ireland and the Netherlands shows that this causality holds true for both cases, but a number of differences have to be noted. Relatively, more retrenchment occurred in the Irish case. Analysis shows that an explanation for these differences can be found in the influence of different political-­‐economic contexts. Following from the loyalty-­‐hypothesis, we note that the liberal and individual Irish model indeed seems to create less loyalty than the collective Dutch one. Therefore, making it easier to adapt since less resistance will be present.