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  The Ambiguous Consensus on Fiscal Rules: How Ideational Ambiguity Has Facilitated Social Democratic Parties’ Support of Structural Deficit Rules in the Eurozone

Eisl, A. (2020). The Ambiguous Consensus on Fiscal Rules: How Ideational Ambiguity Has Facilitated Social Democratic Parties’ Support of Structural Deficit Rules in the Eurozone. MaxPo Discussion Paper, 20/4.

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 Creators:
Eisl, Andreas1, 2, Author           
Affiliations:
1Politische Ökonomie der europäischen Integration, MPI for the Study of Societies, Max Planck Society, ou_1856345              
2Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo), MPI for the Study of Societies, Max Planck Society, ou_1631137              

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Free keywords: ambiguous consensus, comparative politics, eurozone governance, fiscal rules, ideational ambiguity, social democratic parties; ambiguïté conceptuelle, consensus ambigu, gouvernance de la zone euro, partis sociaux-démocrates, politiques comparées, règles budgétaires
 Abstract: In recent years, all eurozone member states have introduced national fiscal rules, which put limits
on public deficits and debt. Fiscal rules reduce the fiscal policy discretion of politicians and affect
their capacity to use public budgets for macroeconomic steering and redistribution. While such
institutional discretion constraints run against the traditional policy preferences of social democratic
parties, it is puzzling why they supported national fiscal rule reforms during the European
debt crisis. This paper argues that the concept of structural deficit rules, central to reform efforts
across the eurozone, allowed for the formation of an ambiguous consensus between center-right
and center-left parties. While conservative and liberal parties are generally supportive of institutional
discretion constraints, structural deficit rules – in contrast to nominal deficit rules – allowed
social democratic and other left-wing parties to link such rules with their broader policy
preferences of Keynesian countercyclical policymaking and the protection of tax revenues across
the economic cycle to ensure the state’s capacity for redistribution. Drawing on three country case
studies (Germany, Austria, France), this paper shows how the concept of structural deficit rules facilitated
– at least discursively – the support for discretion-constraining institutions among social
democratic and other left-wing parties. In theoretical terms, this study also advances research on
the role of ambiguity in political decision-making, (re-)conceptualizing three forms of ambiguity underlying ambiguous consensus: textual ambiguity, institutional ambiguity, and ideational ambiguity.
 Abstract: Au cours des dernières années, tous les pays membres de la zone euro ont introduit des règles
budgétaires nationales qui fixent des limites à la dette et aux déficits publics. Les règles budgétaires
réduisent le pouvoir discrétionnaire des responsables politiques en matière budgétaire et affectent
leur capacité à utiliser les budgets publics pour le pilotage macroéconomique et pour la redistribution.
Alors que ces contraintes institutionnelles vont à l’encontre des préférences traditionnelles
des partis sociaux-démocrates, on peut s’étonner de constater que ces derniers ont soutenu les réformes
des règles budgétaires pendant la crise de la dette en Europe. Cette étude défend l’idée selon
laquelle les règles sur le déficit structurel, un concept central des initiatives de réforme au sein de
la zone euro, ont abouti à un consensus ambigu entre les partis du centre-droit et ceux du centregauche.
Tandis que les partis conservateurs et libéraux soutiennent généralement les contraintes
sur le pouvoir discrétionnaire des institutions, les règles sur le déficit structurel – contrairement
aux règles sur le déficit nominal – ont permis aux partis sociaux-démocrates et à d’autres partis
de gauche de les relier à leurs préférences pour des politiques keynésiennes contra-cycliques plus
larges et au maintien des impôts sur les revenus tout au long du cycle économique, afin d’assurer
la capacité redistributive de l’État. Sur la base d’études de cas portant sur trois pays (Allemagne,
Autriche et France), cet article montre comment le concept de règles sur le déficit structurel a
facilité – du moins au niveau discursif – le soutien des contraintes institutionnelles par les partis
sociaux-démocrates et par d’autres partis de gauche. Sur le plan théorique, la présente étude développe
la recherche sur le rôle de l’ambiguïté dans la prise de décisions politiques, en (re)conceptualisant
trois formes d’ambiguïté sous-jacentes au consensus ambigu : l’ambiguïté textuelle, l’ambiguïté institutionnelle et l’ambiguïté conceptuelle.

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Language(s): fra - French
 Dates: 2020-042020
 Publication Status: Issued
 Pages: iv, 29
 Publishing info: Paris : MaxPo
 Table of Contents: 1 Introduction

2 Three forms of ambiguity underlying ambiguous consensus
Textual ambiguity
Institutional ambiguity
Ideational ambiguity

3 Origins and implementations of structural deficit rules
From nominal to structural deficit rules in Europe
The implementation of national structural deficit rules

4 The inherent ambiguities in structural deficit rules
Ideational ambiguity in structural deficit rules
Textual and institutional ambiguity in structural deficit rules

5 Social democratic support for structural deficit rules in three countries
A problem definition of public deficits shared by social democratic parties
Structural deficit rules and countercyclical policymaking
Structural deficit rules and tax cuts

6 Conclusion

Interviews
Parliamentary and committee minutes
Electoral manifestos and party platform programs
References
 Rev. Type: Internal
 Identifiers: -
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Title: MaxPo Discussion Paper
Source Genre: Series
 Creator(s):
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo), MPI for the Study of Societies, Max Planck Society, Editor              
Affiliations:
-
Publ. Info: -
Pages: - Volume / Issue: 20/4 Sequence Number: - Start / End Page: - Identifier: ISSN: 2196-6508
ISSN: 2197-3075