Review article
Austerity measures in the public sector In slovenia and other selected European countries
Stanislava Setnikar Cankar
; Faculty of Administration, University of Ljubljana, Slovenia
Veronika Petkovšek
; Faculty of Administration, University of Ljubljana, Slovenia
Abstract
The global financial and economic crisis has placed a heavy burden on the public finances of EU Member States, including Slovenia. The current priority of each country is to ensure the sustainability of public finances. In 2012,the majority of EU countries still officially had an excessive deficit, i.e. one that exceeded the permitted level of 3 per cent of GDP. In most EU countries, measures to consolidate public finances are aimed at reducing government expenditure, and mainly include changes to the organisation of the public sector, social security and pension schemes. Most countries have had to face public
sector wage reductions, combining wage cuts and wage freezes with employment reductions and other changes to employment conditions. The aim of the paper is to outline and compare the current state of public finances in the selected EU countries – Slovenia, the Netherlands, France and Italy – and to outline and compare the austerity measures in these countries’ public sectors, particularly
as they affect civil servants. The comparison gives an insight into the similarities and differences of the austerity measures in the selected countries as a first step to stabilization of economic situation. The negative consequences of the adopted austerity measures have to be taken into consideration, too. The need for measures,
which would be a sufficient condition for economic growth, recovery, and unemployment reduction, is also indicated in the paper.
Keywords
global financial and economic crisis; fiscal consolidation; austerity measures; public sector; international comparison
Hrčak ID:
130460
URI
Publication date:
18.12.2013.
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