This paper analyses the reform trajectories that are specific to continental European welfare systems, going beyond the idea that this third world of welfare capitalism is frozen. Comparing the reform trajectories in the different countries and sectors, shows that one can identify four successive sequences of reforms over the last 25 years (from reforms aimed at protecting the insured male worker to reforms aimed at re-structuring benefits, financing and governance arrangements). The paper shows that the trajectory followed by these systems has been highly determined by the typical Bismarckian welfare institutions, but also reversed by a learning process. The paper concludes that the consequences of these changes are increasing the insider/outsider cleavage. only subscribers can see the full article