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Crisis, structural reform and the dismantling of the European Social Model(s)

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  • Hermann, Christoph

Abstract

Following ECB-president Draghi's remark that the European Social Model does no longer exist and the crisis can only be overcome through a combination of austerity and structural reform, this paper examines the consequences of austerity measures and structural reforms adopted during the crisis in a number of EU member states. The hypothesis is that the juxtaposition of the end of the European Social Model on the one hand, and austerity and structural reform on the other was well chosen. In fact austerity and the structural reforms amount to a veritable attack on the foundations of the European Social Model. The first part of the essay summarizes the discussion on the European Social Model, while the second part describes and compares major austerity measures and structural reforms adopted during the crisis. The third part discusses the impact of the newly established European Economic Governance structure on national economic and social policies. The fourth part deals with the consequences of austerity and structural reform, including for poverty and inequality. The essay ends with some reflections on the role of solidarity and the future of the European Social Model.

Suggested Citation

  • Hermann, Christoph, 2013. "Crisis, structural reform and the dismantling of the European Social Model(s)," IPE Working Papers 26/2013, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    • Handle: RePEc:zbw:ipewps:262013
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    Cited by:

    1. Nina Dodig & Hansjorg Herr, 2015. "EU policies addressing current account imbalances in the EMU: an assessment," Working papers wpaper74, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    2. Nina Dodig & Hansjörg Herr, 2015. "Current Account Imbalances in the EMU: An Assessment of Official Policy Responses," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(2), pages 193-216, June.
    3. Antonello Scialdone, 2015. "La rete e il trampolino. Indirizzi comunitari in materia di welfare ed investimenti sociali," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 2015(103), pages 169-182.
    4. Herman, Christoph., 2015. "Green new deal and the question of environmental and social justice," ILO Working Papers 994871163402676, International Labour Organization.

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    More about this item

    Keywords

    Economic crisis; European Social Model; Austerity; Inequality; Solidarity;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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