The fiscal crisis and the social wage in Southern Europe.ppt

The fiscal crisis and the social wage in Southern Europe Focus on Greece Compare the fiscal structure of Greece, Spain, Portugal, Italy, France and EU-15 for 1995-2009 Class aspects of fiscal crisis: Estimate the net social wage (ratio) in Greece and other Southern European countries (Are workers/social policy responsible for the recent economic crisis, the public deficits and the accumulation of public debt in recent years?) Is there a distinct “Southern European welfare state model”? Public expenditures, taxes and budget deficits as a percentage of GDP in Greece and EU15 (1995-2009) Public expenditures, taxes and budget deficits as a percentage of GDP in Greece and EU15 (1995-2009) (continued) Summary of the fiscal structure comparison between Greece and EU-15 1995-2009 Greek public expenditures slightly less (1.8%) than in EU-15 on average State revenues much lower (6.0%) Hence, average annual public deficits (6.5%) in Greece Wages of state workers the same as in EU “Welfare state” spending (health, education, social security) less in Greece Defense, general services, interest (= annual deficit) much higher in Greece Taxes on income (of non-workers) and tax rates on profits of corporations much less in Greece Public Education expenditures/GDP Greece and EU-15 1995-2008 Public health expenditures as a percentage of GDP, Greece and EU-15, 1995-2008 Corporate taxes/GDP average 1995-2008 selected EU countries Public expenditures, taxes and budget deficits as a percentage of GDP in France Spain Portugal Italy and EU15 (1995-2009) Table 1: Public expenditures, taxes and budget deficits as a percentage of GDP in France Spain Portugal Italy and EU15 (1995-2009) (continued) Fiscal structure Greece, Portugal and Spain spend less than the EU average, Italy more, France much more Greece, Portugal and Spain collect much less than the EU average in revenues, Italy the average, France much more Inadequate state revenues the reason for public deficits in Greece