Abstract. The discussion on the existence of a distinctive ‘Mediterranean’ welfare model has focused on the historical and politico-institutional dynamics, as well as on the policy traits of the welfare arrangements found in Southern European countries. Particular attention has been given to the external pressures and internal constraints faced by the welfare systems of these countries, as well as to what extent there is a common response to such challenges. In this article, we claim that while researchers were embarked in this scholarly effort, Southern European societies kept changing, transforming the nature of existing arrangements in not always forecasted directions, to the point of questioning the adequacy of clustering them under a common type. The current context of economic and financial crisis introduces additional factors in the process of transformation and reform of the welfare schemes of these countries, placed at the epicentre of the turmoil shattering European economies and societies.