A triumph of failed ideas European models of capitalism in ... - Journal

How do economic governance reforms and austerity measures affect inclusive growth.................................................................................................................................................................strict conditionality programmes. Second, the retreat of the state and ofthe welfare state is more pronounced in some of the new member stateswhose populations are at relatively high risk of poverty, such as Latviaand Lithuania. Third, Ireland has planned by far the biggest cut inpublic spending (which has to do with the state’s guarantees to itsbanks) and it is therefore difficult to tell whether the rolling back of itssocial spending is otherwise bigger or smaller than the cuts in publicspending as a share of GDP.Figure 10 Evolution of public and social expenditure, 2010–2014 (%)0LUFIEvolution of Total Public Expenditure (% of GDP) 2010-2014-5-10-15-20-25-30-35-40LVLTHUGRROBGEESKAT ITCZ DE DKBEMT NLSE FRSIPL CYUKESIE-45-30 -25 -20 -15 -10 -5 0 5Evolution of Social Payments (%) 2010-2014Source: National Stability and Growth Programmes, DG Ecfin.A triumph of failed ideas – European models of capitalism in the crisis 269