Welfare Performance in Southern Europe: Employment Crisis and Poverty Risk

The Great Recession has had a deep impact on employment levels and on income inequality in the Southern European countries (Greece, Spain, Portugal and Italy). It has given rise to a new stage in the discussion on the distinctiveness of a possible ‘Mediterranean’ variant of welfare capitalism. This paper analyses the performance of the Mediterranean cluster during the Great Recession period in its two main dimensions, labour market participation and poverty risk, and to what extent that performance has evolved in a divergent or convergent manner. Firstly, it portrays the main changes in this variant of welfare capitalism during the last two decades. The second and third sections, respectively, provide a comparative profile of the employment crisis suffered by these countries and of its impact on poverty risks. Finally, the main institutional traits are discussed, explaining the relative performance of welfare capitalism in this cluster of countries.     

Reassessing South European Pensions after the Crisis: Evidence from Two Decades of Reforms

The article studies pension reforms in Greece, Italy, Portugal, and Spain between 1990 and 2013, focusing on three dimensions of change: multi-pillarisation, institutional harmonisation, and spending trends (cost-containment/expansion). The pension evolution of these countries is reassessed throughout the period of crisis and austerity. All countries encouraged the spread of private pensions and harmonised their fragmented public schemes. Cost containment was massive, putting future adequacy at risk. While international actors, especially the European Union, acquired a stronger role, that of organised labour declined. Spiralling between crisis and austerity, these systems changed and adapted, but still face old and new problems: inequality, risk individualisation, and increasing vulnerability to external shocks.     

The Distributional Impact of Austerity and the Recession in Southern Europe

Southern European welfare states are under stress. On the one hand, the recession has been causing unemployment to rise and incomes to fall. On the other hand, austerity has affected the capacity of welfare states to protect those affected. This paper assesses the distributional implications of the crisis in Greece, Spain, Italy and Portugal from 2009 to 2013. Using a microsimulation model, we disentangle the first-order effects of tax–benefit policies from the broader effects of the crisis, and estimate how its burden has been shared across income groups. We conclude by discussing the methodological pitfalls and policy implications of our research.     

South European Healthcare Systems under Harsh Austerity: A Progress–Regression Mix?

This article addresses the question of whether the economic crisis provides a politically opportune time to drastically curtail public healthcare in South Europe or whether, instead, there are signs of longer-term reform strategies for potentially balancing fiscal targets with the quest for enhanced value and health outcomes, when eventually growth resumes. After a brief examination of the profile of healthcare systems in Greece, Italy, Portugal and Spain prior to the crisis, we comparatively assess the mix of retrenchment, restructuring and recalibration strategies. The effects of the austerity-driven reforms on current (and expected) health outcomes are also briefly analysed. We conclude with reflections on the future of public healthcare in South Europe.