The Political Effects of Financial Bailouts on Citizens and Parties

Democracy Under Strain: The Political Effects of Financial Bailouts on Citizens and Parties explores how national democratic performance is affected when an economic shock threatens the stability of a supranational economic union. Focusing on the management of the 2010 sovereign debt crisis within the Economic Monetary Union, the book identifies several relevant consequences that followed the imposition of financial bailouts on countries that were posing a risk to the overall financial stability of the Union. First, citizens in countries receiving financial aid updated their perceptions about democracy becoming less satisfied and decreasing their level of trust in key political institutions. Second, parties managing the bailouts, particularly those on the left, suffered significant electoral losses. Moreover, the combination of popular dissatisfaction and frustration with establishment parties opened the door to the electoral rise of non-mainstream parties such as populist or technocratic platforms.

This analysis contributes to the debate in empirical democratic theory on how democratic and economic priorities can be reconciled. By investigating the interplay between economic stability and democratic responsiveness, the book provides insights into the complex political dynamics at play within supranational unions during economic crises.

The event will be followed by a reception.

The event is taking place in the King's Building, room KIN 427. Please report to the main reception of the Strand campus for registration and direction.

SPEAKERS

Professor Shaun Hargreaves-Heap, Professor of Political Economy at the Department of Political Economy, King´s College London.

Professor Yotam Margalit, Brian Mulroney Chair in Government, School of Political Science and International Affairs, Tel Aviv University and Professor of Political Science at the Department of Political Economy, King´s College London.

Professor Massimo Morelli, Professor of Political Science and Economics, Bocconi University