PIP: The implications of recent changes in European patterns of family formation and dissolution are reviewed. Such changes include a greater level of self-reliance and a diminishing investment in the family. This in turn may lead to a greater dependence on the welfare state at a time when the public sector of the economy is experiencing difficulties and may be unable to meet the increasing demands placed on it. The author estimates that the increase in the size of the aged population and the decrease in the population of working age will not cause serious problems before the turn of the century. However, a crisis is likely around the year 2000, as a shrinking labor force will have to support a rapidly growing number of elderly.