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Social Policy Responses to Rising Inflation in Southern Europe

Published online by Cambridge University Press:  08 March 2024

Amílcar Moreira*
Affiliation:
School of Economics and Management, CSG/SOCIUS, University of Lisbon, Lisbon, Portugal
Antonios Roumpakis
Affiliation:
School for Business and Society, University of York, York, UK
Flavia Coda Moscarola
Affiliation:
DIGSPES, Università degli Studi del Piemonte Orientale, Alessandria, Italy CeRP-Collegio Carlo Alberto, Turin, Italy
Olga Cantó
Affiliation:
Universidad de Alcalá, Alcala de Henares, Spain
*
Corresponding author: Amílcar Moreira; Email: amoreira@iseg.ulisboa.pt

Abstract

As they were just coming out of the COVID-19 pandemic, Southern European nations were confronted with a new shock to their economies – this time in the form of a steep rise in prices. This article describes and typifies the social policy responses and measures adopted in Greece, Italy, Portugal and Spain in response to rising inflation. We find that Southern European (SE) governments have put forward a substantive fiscal response – which compares well with that of its neighbours, and even with the previous crisis. The thrust of the response was targeted at limiting the pass-through of international energy prices to consumers. This was complemented, albeit to a lesser degree, with direct support to families. Nevertheless, we do find important differences concerning the weight given to (traditional) welfare transfers, and the role given to indexation mechanisms and wage increases. We also find important continuities with the model of crisis-response adopted during the pandemic.

Type
Themed Section on Social Policy Responses to the Cost-of-Living-Crisis
Copyright
© The Author(s), 2024. Published by Cambridge University Press

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