The Discursive Construction of Europe in Italy in the Age of Permanent Austerity

Abstract

Combining a Critical International Political Economy theoretical perspective with Critical Discourse Analysis, the article explores, from the late 1980s to present and across the party-system, the characteristics of the discursive construction of Europe in Italy as a source of legitimation and naturalization of the country's permanent fiscal adjustment and economic restructuring. Through an original analysis of the official policy documents enacted by Italian governments, I show that the resort to Europe and 'risanamento' (permanent fiscal adjustment) are discursively constructed, by domestic political forces, as legitimating strategies to tackle fiscal profligacy and restore growth, notwithstanding the fact that in Italy (1) primary state budget has been in surplus from the early 1990s, (2) economic growth has been mediocre since the 1990s, and (3) social inequalities and macroeconomic imbalances have risen sharply, especially after 2008 crisis due to prolonged austerity measures. Furthermore, in contrast to the literature that sees Italian Europeanization as a pathway of virtuous economic and political change favoured by supranational integration, I argue that the discursive strategies developed by Italian political elites to legitimate change in national political economy should be broadly conceived, and analysed, as organic to neoliberalism and austerity as international hegemonic projects.

Bank funding and the recent political development in Italy: What about redenomination risk?

“…3 , Fig. 4 falls parallel to the “Whatever it takes”-comment by Mario Draghi, the asset purchase programs by the ECB as well as the resignation of a Silvio Berlusconi government being directly succeeded by a cabinet considered as “technical” led by Mario Monti (see Balduzzi et al, 2020 , and Cozzolino, 2020 ). In 2018, it became evident that the backing for the European idea faded in Italy and capital markets again focused on its sovereign credit risk.…”

“…This high ratio partly originated from political and institutional changes and instability, especially in the 1980ies (see Cozzolino, 2020 ). The European integration enjoyed widespread support in Italy for a long time since it was seen as an external constraint enforcing governmental stability, economic modernization, and control over government finances.…”

“…The European integration enjoyed widespread support in Italy for a long time since it was seen as an external constraint enforcing governmental stability, economic modernization, and control over government finances. The EU also served as a reason for reforms (see Cozzolino, 2020 ). This was especially true before the Euro crisis during which Italy was one of the countries most affected, resulting in an increase of the debt-to-GDP ratio as depicted in Fig.…”

“…Even though the government (except for 2009) produced primary surpluses (red bars) the total resulted in ongoing deficits (orange bars), which were reduced over time but still led to increasing total Government debt (blue line). The economic situation fueled social inequalities and pressure within the country (see Cozzolino, 2020 ).

Fig.

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“…This was primarily due to political changes and the parliamentary elections on March 4, 2018. In May, the populist and rather eurosceptic Lega (League) and Movimento Cinque Stelle (M5S – Five Star Movement) formed a government (see Balduzzi et al, 2020 and Cozzolino, 2020 ).

Fig.

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