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Is social democracy in a terminal condition in Europe? Social democracy is in office almost nowhere in Europe and appears bereft of ideas in the face of the economic crisis that might have given it a historic opportunity. While accepting the truth of this, Keating and McCrone take a stand again those who claim that social democracy is dead. By arguing that social democracy is not a single set of ideas or practices but a way of reconciling market capitalism with social inclusion and equality, they show that it has actually been remarkably successful during the 20th century. Its key principles are still relevant but must be adapted to new conditions. This book examines the fortunes of social democracy in western and east-central Europe and the policy challenges in economic policy, labour markets, social welfare, public services, European integration and decentralisation.