Political Economy of Democratic Challenges in Southern Europe

Significant amount of scholarship in social sciences is dedicated to highlight the impact of free, democratic and accountable regimes on economic growth and prosperity (Acemoglu & Robinson 2012, Norris 2012, Boix 2003). This papers looks at the relationship between economy and democracy in the Southern European context, but it flips the lenses and looks from the opposite end. As South American President Jacob Zuma put it succinctly, “You can’t eat democracy”. What happens to Southern European democracies, when main economic indicators deteriorate? How does the political system (parties and voters) react, when a democratic regime does not seem to deliver as generously as it used to? This paper looks at both the macroeconomic indicators for a select group of countries in Southern Europe, as well as to their social policies and social spending practices. In the last few years, anti-systemic, populist and black swan parties are becoming increasingly more prevalent in the region. This paper is an attempt to uncover the political-economic dynamics behind these parties.