The contents of this research contribute to the debate on the actual and potential effects of privatization and liberalization of services through a series of quantitative and comparative analyses. As far as the ‘economic’ effects of privatization and liberalization are concerned the case studies demonstrate that these are anything but clear-cut. this is about the academic and the political meaning of a European Social Model (ESM)which is still continue. According to Lisbon strategy the framework setting is purposely left to the market actors.it seems obvious that positive integration within the EU to a certain extent is a necessary supplement to negative integration. opportunities and challenges in private and public sectors and it direct effect over the job, economic growth specially in the area of hospital, post services, electricity and so on with the EU. effects of liberalization of service sector in Europe the influence of privatization and liberalization on the quality of employment in terms of wages and working conditions are discussed in details. we come up with example of German postal and hospital sectors, Swedish postal services and electricity, skill levels and wages in France, Italy and finally on the gender pay gap in eight Western European countries.