Compared to Anglo-Saxon and Scandinavian socio-economic models, our Bismarckian-type welfare regime is in fact not as bad as we might have thought. This report from IZA shows that countries with such welfare systems can be as successful in terms of employment and poverty reduction. The authors analyze employment rate evolution between 1997 and 2007 as a measure for judging the sustainability of the Bismarckian welfare state and the success of social and economic policy reforms. In some countries like Belgium however, we should put extra effort into the employment rate of older workers.