The views expressed in this working paper are those of the author(s) and not necessarily represent those of the Faculty of Economics and Business – Zagreb. The paper has not undergone formal review or approval. The paper is published to bring forth comments on research in progress before it appears in final form in an academic journal or elsewhere. Abstract Objective of this paper is to analyse the most recent changes of the interplay between the flexibility of the employment relationship on the one hand, and labour market and social policy, on the other. This article examines the new policy concept of "flexicurity" in view of the emerging flexibility-security approach that the European Union, national governments, sector of industry, individual companies and workers are currently facing. The flexicurity approach provides important answers to the question of how to meet modern labour market challenges and at the same time improve security. The special interest is concentrated on the so-called "golden triangle" of the Danish labour market successful flexicurity model. 1 Note: This article draws on European Commission (2007) report Towards Common Principles of Flexicurity: More and better jobs through flexibility and security, p. 7-37, and Per Kongshøj Madsen (2003) article "Flexicurity" through labour market policies and institutions in Denmark.