By Huw Macartney (auth.)
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Extra resources for The Debt Crisis and European Democratic Legitimacy
2 This was, of course, reminiscent of the conditionality ‘perfected’ by the IMF after the Third World debt crisis, though it marked the forging of a nascent consensus in the management of this most recent crisis (European Community, 2009; see also Shields, 2007). By the Eurogroup and ECOFIN meetings (9–10 February 2009) and G7 meeting in Rome (13–14 February) this consensus – that neoliberal, ‘growth enhancing’ measures must accompany short-term stimulus efforts – was garnering support (IMF 2009c).
This was therefore not simply a failure on the part of the EU to begin the deficit cutting measures early enough, but the accumulation of the contradictions of the European project itself. 1 Faced with growing tensions the Greek government submitted its Stability Programme for 2010–2013 to the European Commission on 15 January. 8 per cent in 2012 and 2 per cent in 2013. Already the programme was radical in its scope: it proposed the elimination of tax exemptions; the rise of excise duties on tobacco and alcohol; as well as measures to fight tax evasion.
1). The lead-up to the – coordinated and counter-cyclical – European Economic Recovery Plan (EERP) was precipitated by the transition from banking crisis to a slowdown in the real economy. Informally proposed by the Commission on the 29 October, the EERP was formally outlined on 26 November. In one respect, however, the EERP was little more than the sum total of the individual stimulus packages declared by member states for 2009, with the EU only urging more reluctant member states to pursue the necessary measures (Commission, 2008b); it amounted to €200bn and included only €30bn from the EU Commission.