Austerity is Strangling Europe

Because they have failed to address the fundamental economic imbalances within Europe obscured by the single currency, each effort by European leaders so far to resolve the euro crisis has only deepened it. Without a decisive move toward fiscal and political union, accompanied by policies that push productivity and competitiveness toward convergence while closing the democratic deficit, the Eurozone will disintegrate. To discuss the way forward, the Nicolas Berggruen Institute's Council on the Future of Europe met in Rome on May 28 with Italian Prime Minister Mario Monti. In this section we publish the contributions from that meeting by the former European leaders, scholars and Nobel laureates who are members of the Council.     

Election campaigns and the cyclical nature of emotions—How politicians engage in affective polarization

Do politicians get emotional during an election campaign? We examine the existence of changes in partisan in-group favoritism and partisan out-group hostility among political elites by evaluating the degree to which they fluctuate before, during and after election campaigns. The lack of elite level panel data has prevented scholars from studying the dynamics of politicians' emotions around the most emotionally intense political event in democracies: elections. We focus on Sweden around the 2014 election and follow more than 700 Swedish politicians before, during and after a national election campaign using a unique three-wave panel survey. The results reveal that politicians' emotions towards other parties are affected during the election, but less so for their own party. Our study adds to the body of recent evidence that campaigns mobilize partisan identities and increase partisan animus.     

Do citizens care about government debt? Evidence from survey experiments on budgetary priorities

Ever since the Great Recession, public debt has become politicised. Some research suggests that citizens are fiscally conservative, while other research shows that they punish governments for implementing fiscal consolidation. This begs the question of whether and how much citizens care about debt. We argue that debt is not a priority for citizens because reducing it involves spending and tax trade-offs. Using a split-sample experiment and a conjoint experiment in four European countries, we show that fiscal consolidation at the cost of spending cuts or taxes hikes is less popular than commonly assumed. Revenue-based consolidation is especially unpopular, but expenditure-based consolidation is also contested. Moreover, the public has clear fiscal policy priorities: People do not favour lower debt and taxes, but they support higher progressive taxes to pay for more government spending. The article furthers our understanding of public opinion on fiscal policies and the likely political consequences of austerity.