Too big to fail? The dynamics of EU influence and fiscal consolidation in Italy and Spain (2008–2016)

Badell, Diego; Di Mascio, Fabrizio; Natalini, Alessandro; Ongaro, Edoardo; Stolfi, Francesco and Ysa, Tamyko (2019). Too big to fail? The dynamics of EU influence and fiscal consolidation in Italy and Spain (2008–2016). Public Management Review, 21(9) pp. 1307–1329.

DOI: https://doi.org/10.1080/14719037.2019.1618386

Abstract

The article studies the dynamics of fiscal consolidation and public sector reforms in Italy and Spain under the EU governance that took shape as a reaction to the Eurozone crisis. We show how three types of EU pressure – fiscal and economic coordination rules, conditionality, and back-room diplomacy have operated in conjunction. We also show that Italy was more willing than Spain to resist EU pressure. Based on a Two-Level Game framework, we argue that this can be explained by the greater opposition to European integration that has developed in Italy compared to Spain.

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