The last two decades of 20th Century and the first decade of 21st Century have been marked by the decrease of public sector intervention in economy and the crisis of Welfare State. These two phenomena are strictly interconnected: the spread of procompetitive principles corroded some pillars of Welfare State (like public services) and the power of the State to organize industrial policies and economic activities. This panel is intended to analyze some examples of how Welfare State and industrial policy reacted to these transformations, seeking for new equilibria. In particular, this panel will discuss how Welfare State is facing with issues of social inclusions, democracy, and security, creating new instruments (as basic incomes) and reinventing the existent ones (as the emergency requisition of property) and how States are trying to gain new room for protecting not economic interests in industrial policies.