Will the welfare states survive globalisation ?

According to Marc de Scitivaux, the development of the welfare state in all of the large industrialised countries in the forty-five years following the end of the Second World war has been founded on two economic "effects" : inflation and budget deficit. Mismanagement of these two factors finally caused them to dry up, and we are now witnessing a return to the previous traditional situation, namely a supplier's economy, unlike a demand-driven economy, as followed the 1929 crisis. From now on, the ball is in the court of the capitalists and the contractors. States are obliged to compete to attract them, steering between the Scylla of bankruptcy (if they are unable to reduce their expenditure), and the Charybdis of social and political breakdown (if they reduce their public spending too much). Is there hope of a peaceful solution to this dilemma?