logo

Message in a Battle – Austerity in Europe and Lessons for Central and Eastern European Member States

Kovács, O. (2013): Message in a Battle – Austerity in Europe and Lessons for Central and Eastern European Member States. News of the Month, ICEG European Center, November 2013, pp. 8-18.

In this article we purport to illustrate why differential diagnosis is inevitable when it comes to fighting against the tide to gain control over indebtedness and dampen sovereign risk in European countries. To this end, we first look at the crisis management of old European Union member states and then outline succinctly the importance of interdependence between old and new member states (EU-10). The latter has implications for the present and the future crisis management alike. We argue that policymakers and scholars working on how to stabilise public finances without overly jeopardising the economic recovery of Europe should remember to Anthony Giddens’ holistic view who stressed that the intensification of worldwide social relations link distant localities together in such a way that local happenings are shaped by events occurring many miles away and vice versa (Giddens, 1990:64). It implies that austerity at national level has cross-border spill over effects.