Explaining the production of European Austerity: A Critical Political Economy Approach

Abstract. Since the signing of the Maastricht Treaty and the formation of the EMU, the Eurozone has progressively transformed into a political economic regime characterised by stringent fiscal discipline and the legalised enforcement of austerity on its member states. Within the literature on the political economy of austerity various competing explanations have been given for this transformation. This thesis will explore the limits of these accounts through a case study of the political economy of the Netherlands over the past decade. Based on the findings of this case, it will argue that current accounts on the rise of austerity fail to properly account for its emergence because they do not properly account for the political elements of its implementation and execution. Consequently, this thesis will explain the rise of austerity by combining a critical political economy approach with a state-centric perspective. In order to so, it will demonstrate the historically politicised...Show moreAbstract. Since the signing of the Maastricht Treaty and the formation of the EMU, the Eurozone has progressively transformed into a political economic regime characterised by stringent fiscal discipline and the legalised enforcement of austerity on its member states. Within the literature on the political economy of austerity various competing explanations have been given for this transformation. This thesis will explore the limits of these accounts through a case study of the political economy of the Netherlands over the past decade. Based on the findings of this case, it will argue that current accounts on the rise of austerity fail to properly account for its emergence because they do not properly account for the political elements of its implementation and execution. Consequently, this thesis will explain the rise of austerity by combining a critical political economy approach with a state-centric perspective. In order to so, it will demonstrate the historically politicised nature of austerity through a historiography of one of its most ardent supporters, the Netherlands. Finally, it will explain this Dutch position by arguing that the production of austerity has historically been a political strategy employed by certain state actors within the context of a Weberian market struggle over the structure of the European Monetary Union.Show less

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Explaining the production of European Austerity: A Critical Political Economy Approach