"This article compares the welfare reform dynamics and rescaling processes over the last few years in Greece and Portugal. It comprises four main sections. After an introduction, the second section briefly describes the salient features of social security, healthcare and labour market policy in the two countries in the years prior to the crisis. It also sets out the major dimensions of comparison. The third section provides a short account of the unfolding of the crisis and the common pressures for structural adjustment, while the fourth section examines the policy options and outputs in the above three policy domains under the bail-out. In the light of the major points of comparison put forward, the interplay of external and internal factors in welfare state reform and rescaling are analysed in section five. The conclusion briefl y points to restrictions and challenges in the post-crisis era."

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