ABSTRACT
In the context of the 2007–2008 crisis, Europe’s economic-political elites grew obsessed with austerity (Stigltiz 2016, as cited in Hackwell, 2016). ‘Austerity’ became the new buzzword, a legitimate ideology, and a panacea to cure the effects of the turmoil. José Manuel Barroso—the then President of the European Commission—publicly defended Europe’s move towards austerity, by stating that “without addressing this issue [of austerity], there will be no confidence, and without confidence, no growth” (as cited in Erlanger & Castlejune, 2010, p. 1). In the same vein, Jean-Claude Trichet—the then President of the European Central Bank—declared: “The idea that austerity could trigger stagnation is incorrect, because confidence-inspiring policies will foster and not hamper economic recovery” (as cited in Clarke & Newman, 2012, p. 301). A sort of ‘magical thinking’ flourished, centered on the ‘alchemy of austerity,’ which “might turn disaster into triumph—the triumph being a new neo-liberal settlement” (Clarke & Newman, 2012, p. 302).
