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The "eternal character" of austerity meausres in European crisis policies. Evidences from the Fiscal Compact discourse in Austria

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  • Stephan Puehringer

    (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria)

Abstract

The European Fiscal Compact (FC) entered into force by 1 January, 2013 in 25 EU Member States. With the ratification the signatory countries commit significant parts of their budget to the European Comission and the European Court of Justice, which indicates a shift of power from legislative to executive authorities and the judiciary. In the aftermath of the economic crisis there can be observed a strong tendency to interpret the financial and economic crisis mainly as a sovereign debt crisis without any connection to the preceding crisis. This is reflected in several recommendations, which limit the scope of political decision-making in order to "calm financial markets". A striking example for the subordination of political discourse to "the market" is given by the German Chancellor Angela Merkel: "Of course we live in a democracy and it is a parliamentary democracy [...] so we shall find ways to shape parliamentary co-determination so that it nonetheless conforms to the markets. " (Merkel 2011). Applying an analysis of the public discourse about FC in three leading Austrian newspapers from December 2011 (the initial debate at an EU Summit) to July 2012 (the ratification in the Austrian parliament), the dominant rationale as well as legitimization and argumentation patterns will be examined. The methodology adopted in the article is based on a combination of critical discourse analysis and conceptual metaphor theory in order to illustrate the effectiveness of market-radical thinking of specific economic elites in public discourse. It can be shown that the public discourse about economic policies yet in a time of a potential "crisis of economics" is still dominated by economic ideas of "economic imaginaries" (implicitly) preferring austerity measures to active fiscal policies.

Suggested Citation

  • Stephan Puehringer, 2018. "The "eternal character" of austerity meausres in European crisis policies. Evidences from the Fiscal Compact discourse in Austria," ICAE Working Papers 80, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    • Handle: RePEc:ico:wpaper:80
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    austerity; critical discourse analysis; metaphor analysis; economic imaginariesm Fiscal Compact; Austria;
    All these keywords.

    JEL classification:

    • B19 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Other
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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