The paper intends to show that, as to the forging of the new welfare state, the past close to two decades of post-communist transformation has brought about Central Europe’s remarkable departure from the track of Western developments. Besides steady slowing down of economic growth since the late 1990s, a review of the key indicators of social development reveals the emergence of previously unknown fault-lines in the new social structures. it is argued that the actual reality of the post-1990 systemic transformation has brought about ever more remarkable retreats of bifurcation in provisions that have concluded, in turn, in an ever more visible disintegration in day-to-day social relations. Taking the case of Hungary, it is demonstrated that the new reforms in welfare have assisted integration into the market for the well-to-do, while the very same reforms have brought further marginalisation and social exclusion for the truly poor. only subscribers can see the full article