Fiscal Governance in Europe: Comparative Perspectives on the Politics of Austerity

The global financial crisis of 2008 had a profound impact on Europe. In the years that followed, many European countries implemented austerity measures in an effort to reduce their budget deficits and public debt. These measures typically involved cuts to public spending and increases in taxes.

Fiscal Governance in Europe (Cambridge Studies in Comparative Politics)

by Mark Hallerberg

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Language	:	English
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Austerity has been a highly controversial policy, with critics arguing that it has led to increased poverty and inequality. However, supporters of austerity argue that it was necessary to reduce the risk of a sovereign debt crisis and to restore confidence in the European economy.

The politics of austerity have been complex and varied across Europe. In some countries, austerity has been implemented with relatively little resistance. In other countries, it has led to widespread protests and social unrest.

This book examines the politics of austerity in Europe, focusing on the role of fiscal rules and institutions in shaping the response to the financial crisis. It argues that fiscal governance has become a key site of political contestation, with different actors and institutions competing to define the terms of fiscal policy.

Fiscal Governance in the European Union

The European Union (EU) has played a key role in the development of fiscal governance in Europe. The EU's Stability and Growth Pact (SGP) was introduced in 1997 to ensure that member states maintain sound public finances. The SGP sets limits on budget deficits and public debt, and requires member states to implement corrective measures if they breach these limits.

The SGP has been revised several times since its , most recently in 2012. The revised SGP includes a number of new measures designed to strengthen fiscal discipline, such as the requirement for member states to adopt national fiscal frameworks.

The EU's fiscal governance framework has been criticized for being too rigid and for failing to take into account the specific circumstances of individual member states. However, it is clear that the EU has played a key role in shaping the politics of austerity in Europe.

The Politics of Austerity in Europe

The politics of austerity have been complex and varied across Europe. In some countries, austerity has been implemented with relatively little resistance. In other countries, it has led to widespread protests and social unrest.

There are a number of factors that have influenced the politics of austerity in Europe. These include:

* The severity of the financial crisis * The level of public debt and deficits * The strength of the social welfare system * The political culture of the country

In countries where the financial crisis was particularly severe, there was often more public support for austerity measures. This was because people were more afraid of the consequences of a sovereign debt crisis.

In countries with high levels of public debt and deficits, there was also more pressure on governments to implement austerity measures. This was because these countries were more likely to be subject to the EU's Stability and Growth Pact.

The strength of the social welfare system also played a role in the politics of austerity. In countries with strong social welfare systems, there was more resistance to cuts in public spending. This was because people were more likely to rely on public services.

Finally, the political culture of the country also influenced the politics of austerity. In countries with a strong tradition of social democracy, there was more resistance to austerity measures. This was because social democrats are more likely to believe in the importance of public services.

The politics of austerity in Europe have been complex and varied. There is no one-size-fits-all approach to austerity, and the specific policies that have been implemented have varied from country to country. However, it is clear that fiscal governance has become a key site of political contestation in Europe, with different actors and institutions competing to define the terms of fiscal policy.

The future of fiscal governance in Europe is uncertain. The EU is currently reviewing its fiscal governance framework, and it is possible that changes will be made in the coming years. It is also possible that the politics of austerity will continue to be a source of conflict and division in Europe.

However, one thing is clear: fiscal governance will continue to play a key role in shaping the future of Europe. It is important to understand the different perspectives on fiscal governance and to be aware of the potential consequences of different policy choices.

Fiscal Governance in Europe (Cambridge Studies in Comparative Politics)

by Mark Hallerberg

4.6 out of 5

Language	:	English
File size	:	4251 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	246 pages
X-Ray for textbooks	:	Enabled

FREE