The problem existed in Germany, too. As long as the household was not a problem and the economy kept going strong, it was easily overlooked. But now, when the state has serious financial problems, a system is needed to increase pressure on those who don't look as if they're very willing to work.
These 1 € job are a new instrument, and there are some doubts about it. Some fear that companies might fire people to hire unemployeds on this 1 €/hour basis...
I don't know the exact regulation, but some unemployeds working in such programs reported that they actually felt relieved to finally have a job and a more or less useful task to fulfill, a regular daily schedule and some workmates to chat with etc.... besides the state hopes to get long-term unemploed people more accustomed to regular work days again, and that an employment on 1€ basis might be a stepping stone for a regular job. I mean, if a company sees that someone does good work, they could be interested in giving him/her a full-time contract. AFAIK, those 1€ jobs are bound to certain time limits so that a 1€ worker cannot replace a regularly contracted employee.
Another instrument which is also getting handled increasingly more strictly consists in cutting financial aid for people who are offered a job but refuse.
All in all it's a hard process, and it's accompanied by lots of protest...
One of the many opinions I can really understand is the one that our social climate doesn't seem to get any warmer these days...
EDIT
Oops - now I DID kind of hijack the thread... me sorry! :o