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This paper describes the ways in which EU law forces Member States to reorganise their welfare states, focusing on the effects of free movement and competition principles on health care, education, and social insurance. It then considers the consequences of such reorganisations for national identity and social cohesion, for domestic and foreign policy and European integration, and as the creation of a new welfare industry. The thesis of the first part is this: that the negative harmonisation ofdoi:10.2139/ssrn.900934 fatcat:zv77fzx4ofgavdyweluwrtqdji