Beyond Austerity? EU social politics after the Great Recession

Marcello Natili, Anna Kyriazi and Stefano Ronchi

Stato e mercato, 2025, issue 1, 127-141

Abstract: For much of the post-Maastricht period, European integration has prioritized market liberalization and fiscal consolidation over social policy. This orientation was especially pronounced during the euro crisis, when austerity measures were aggressively pursued. However, the severe social consequences of the economic crisis and austerity, combined with the growing politicization of European integration, gradually reshaped the political landscape and compelled the EU to rethink its strategy. This led to the introduction of a broad range of EU social initiatives. This contribution examines the expansion of EU involvement in the social domain over the last decade, highlighting two key developments: first, the increase in social regulation aimed at coordinating and raising social standards across Member States; second, the establishment of new funds and programmes to support national welfare states under stress, contributing to the emergence of new EU-level capacities. Even though they helped revive a seemingly forgotten European social model, we argue that many of these instruments remain either temporary or inadequately funded. Rather than a paradigmatic shift, this «social turn» appears to be a strategic response to mounting political pressures and growing concerns over the legitimacy of the European integration process. While the new instruments have the potential to generate positive feedback and help sustain social standards across the EU, this outcome is by no means guaranteed. Without active reinforcement by key political actors, the institutional foundations laid over the past decade risk remaining fragile, and the prospects for a long-term transformation of supranational social policy remain uncertain.

Keywords: Welfare, Well-Being and Poverty; Capitalist Instit tions, Welfare State; Comparative Analysis of Economic Systems (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:mul:jl9ury:doi:10.1425/117163:y:2025:i:1:p:127-141

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