The Size of Austerity

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Cumulative size of austerity packages as a % of GDP, 2010-2013

The data come from Andrew Watt’s and Sotiria Theodoropoulou’s ETUI report, (p. 14) based on a survey of country experts. Some data, from Italy and Spain most notably, are missing. This is partly based on 2011 estimates, and as we know forecasts have been all but reliable. There is more data on this on the Washington Post’s wonkblog and the Guardian writes this about the UK.

What the Guardian doesn’t explain is whether the coalition wants to “shrink the state” through (1) net cuts in spending or (2) by keeping its progression lower than economic growth. From the data it seems that it’s been (1) until now and it should be (2) from now on. Of course, (2) depends on the return of growth, but since it’s still waiting for the confidence fairy, we may be stuck with (1).

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