Dealing with Austerity: a case of local resilience in Southern Europe

Abstract

Southern countries are undergoing a severe economic crisis that has renewed debates about the available strategies to economize their public resources. Political leaders have launched a wide range of different strategies aimed at reducing spending. According to generally accepted political discourse, drastic actions should be taken to guarantee economic and financial sustainability in times of austerity. We explore the main measures adopted by Spanish municipalities in order to examine their impact in budgetary terms. First of all, we identify the most frequently implemented mechanisms including organizational structure, public services and operational economic restructuration. After their quantification, we monitor the presence and impact of each set of policies to analyse the relationship between concrete measures and effective economic impact. The effective reduction of budgets is being implemented but data shows that local governments are resilient to non-compulsory changes. The 'government at a distance' policy pursued by the central state administration has effectively reduced budgets but has not affected the institutional core of Spanish local governments.