In recent years the countries of southern Europe have undergone, with varying intensity, a serious and prolonged economic crisis. Most have had to implement comprehensive economic adjustment programmes, including a wide range of structural reforms. Economic Crisis and Structural Reforms in Southern Europe examines these reforms, drawing policy lessons from their successes and failures.

This book employs two basic strands of analysis: issues of policy design, and political economy considerations. It considers the choice of timing and sequencing of reforms, the choice of the appropriate policy instruments, the pressure of interest groups and the political calculations involved in reforms. Featuring chapters in which contributors explore both national cases of specific structural reforms, and a comparative approach in order to evaluate similar reforms across countries, this important and topical work explores ongoing issues within the economy.

Focusing on the challenges of designing and implementing structural reforms under conditions of crisis, this book will be of interest to policy makers and researchers from national and international organizations as well as academics and members of research institutes interested in the economics and politics of the Eurozone crisis.

chapter 1|13 pages


ByDimitris Katsikas, Paolo Manasse

part I|44 pages

The economics and politics of structural reforms

chapter 2|24 pages

Designing structural reforms in times of crisis

Lessons from the past
ByDimitris Katsikas

chapter 3|18 pages

The political conditions for economic reform in Europe’s South

ByAlessio Terzi

part II|127 pages

Policy design

chapter 4|28 pages

The persistence-resilience trade-off in unemployment

The role of labour and product market institutions
ByTolga Aksoy, Paolo Manasse

chapter 5|24 pages

Reforms and external balances in Southern Europe and Ireland

ByLuís A. V. Catão

chapter 6|27 pages

Labour market reform in Portugal under the adjustment programme

Lessons for policy design
ByAlessandro Turrini

chapter 7|22 pages

Some unpleasant labour arithmetics

A tale of the Spanish 2012 labour market reform
ByCarlos Cuerpo, Federico Geli, Carlos Herrero

chapter 8|24 pages

Balancing adjustment policies and structural reforms in Greece

The case of product markets
ByAthanassios Petralias, Marianthi Anastasatou, Dimitris Katsikas

part III|57 pages

The political economy of structural reforms in southern Europe

chapter 9|18 pages

The political economy of Cyprus’s financial sector reform

BySofronis Clerides

chapter 10|19 pages

Non-performing loans in the European periphery

The political economy of reform
ByEleni Panagiotarea

chapter 11|13 pages

The restructuring of Spain’s banking system

A political economy approach
ByMiguel Otero-Iglesias, Federico Steinberg

chapter 12|5 pages


ByPaolo Manasse, Dimitris Katsikas