How Party Linkages Shape Austerity Politics: Clientelism and Fiscal Adjustment in Greece and Portugal During the Eurozone Crisis
Journal of European Public Policy, Forthcoming
Posted: 11 Aug 2014
Date Written: August 9, 2014
Drawing on an analysis of austerity reforms in Greece and Portugal during the sovereign debt crisis from 2009 onwards, we show how the nature of the linkages between parties and citizens shapes party strategies of fiscal retrenchment. We argue that parties which rely to a greater extent on the selective distribution of state resources to mobilise electoral support (clientelistic linkages) are more reluctant to agree to fiscal retrenchment because their own electoral survival depends on their ability to control state budgets to reward clients. In Greece, where parties relied extensively on these clientelistic linkages, austerity reforms have been characterised by recurring conflicts and disagreements between the main parties, as well as a fundamental transformation of the party system. By contrast, in Portugal, where parties relied less on clientelistic strategies, austerity reforms have been more consensual because fiscal retrenchment challenged to a lesser extent the electoral base of the mainstream parties.
Keywords: clientelism, Eurozone crisis, Greece, political parties, Portugal
JEL Classification: E62, E63, E65, F34
Suggested Citation: Suggested Citation