I just did some research and I have to say this:
WTF, those Euros are lazy.
Democratic socialism is nothing short of a slow evil: it combines the best in democracy and socialism, while rejecting the sacrifices that have to be made to keep the government running.
You can't have both a free market and complete economic security for yourself, it's a choice (or at best a compromise) and for the former you have to pay by potential poverty and slavery, while for the latter you have to pay with practically all economic and medium to high degrees of your social freedom.
This law is made to go towards more in free market (let's face it, it's easier for Europe to go into Free Market than Central Planning right now as they are a fundamentally free market based) to get rid of the dangers in the compromise, but those lazy bastards go against the concept of competition!
Even in the USSR, there was competition in factories, there were promotions, and while a man could not be unemployed he could either be transfered to a horrible job (street cleaner in tiny Siberian village) or arrested for sabotage.
Socialism, ironically, takes competition to the extreme, with far higher potential payoffs, far lower potential pitfalls and a far large "middle class".
You can't have it both ways- the people of Europe (when I say Europe I always mean western Europe) have to make a choice.