ABSTRACT
This chapter examines the relationship between austerity, conditionality and the rule of law. It describes the actions that governments took following the financial crisis as they attempted to deal with its consequences by implementing spending cuts and/or tax rises and looks at the impact of government policies on the economic and social well-being of individuals. The chapter describes the structure of support for the unemployed and the level of protection achieved in each of the six countries (UK, France, Germany, Italy Spain and Sweden) since they provide a context for a comparison. It also considers the impact of the financial crisis on the 'real economy' by tracing changes in Gross Domestic Product (GDP) per capita, employment levels, unemployment levels and the at-risk-of-poverty (AROP) rate, and its impact on government by tracing changes in direct and indirect taxes, public and social expenditure and the 'generosity' of benefits.
