Do Words Matter? The Impact of Communication on the PIIGS' CDS and Bond Yield Spreads during Europe's Sovereign Debt Crisis

The paper aims to shed light on the role of communication in the European debt crisis. It examines the effects of public statements by ECB Governing Council members, EU officials and national representatives on the PIIGS' CDS and bond yield spreads. The focus lies on dovish statements that signal strong determination in the rescue of indebted countries, and hawkish statements that indicate limited commitment to support the PIIGS and protect its creditors. The analysis of daily data for the period between January 1, 2009 and August 12, 2011 in an EGARCH framework suggests that communication by representatives of Germany, France, and the EU as well as ECB Governing Council members had an immediate impact on both types of securities. No effects.

Drivers of populism - A four-country comparison of party communication in the run-up to the 2014 European Parliament elections

The aim of this paper is to analyze what different types of populist communication styles emerged during the 2014 EP election campaign and under which conditions political parties selected specific populist communication styles. To do this, a comparative quantitative content analysis of press releases in the run-up of the latest EP elections has been conducted for parties in France, Germany, Austria and Greece. The paper presents a definition of populism based on the contemporary academic discourse, which focuses on the transnational nature of the European political field. It is shown that populist party communication is more pronounced on the fringes of the political spectrum and in countries struggling with severe macroeconomic difficulties. Contrary to intuitive expectations, the perceived populist rhetoric of exclusivity in the context of the European sovereign debt crisis, which is identified as a central feature of right-wing populism, barely takes place within populist party communication.

Populist Communication in the Context of European Parliament Elections 2014

Over the last decade European democracies have been facing a challenge by the rising force of new populist movements. The emergence of the financial and sovereign debt crisis in Europe created new fertile soil for the strengthening of old-established – and the development of new – populist parties in several EU-member states. José Manuel Barroso, president of the European Commission, emphasized his increased unease concerning these developments when he was speaking at the annual Brussels Think Tank Forum on 22. April 2013: “I am deeply concerned about the divisions that we see emerging: political extremes and populism tearing apart the political support and the social fabric that we need to deal with the crisis; […]” (Barroso 2013). Indeed, European elites seem to be increasingly worried by these recent developments which are perceived as an impending stress test of the Union and the project of European integration as a whole (Hartleb 2013). Sure enough, the results of the recent European Parliament Elections 2014 revealed a great support for populist political parties in many societies of EU-member countries. To understand the success of populist parties in Europe it is crucial to first shed light on the nature of populist party communication itself. Significant communicative differences may explain the varying success of populist parties between and within countries, while a pure demand-side approach (i.e. a focus on the preferences of the electorate) often fails to do so (Mudde 2010). The aim of this study is therefore to analyse what different types of populist communication styles emerge during the EP election campaign 2014 and under which conditions populist communication styles are selected by political parties. So far, the empirical measurement of populism has received only scarce attention (Rooduijn & Pauwels 2011). Besides, most of the existing empirical investigations of populism are single case studies (Albertazzi & McDonnell 2008) and scholars have not yet developed systematic methods to measure populism in a comparative way (Rooduijn & Pauwels 2011). This is a consequence of a lack of conceptual clarity which goes along with populism (Taggart 2000; Barr 2009; Canovan 1999) due to its contextual sensitivity. Hence, populism in Europe should be analysed in a way that clarifies the concept of populism and moreover takes into account that the Europeanization of politics has an influence on the type of populist party communication, which is intended in the course of that study.

How the Euro divides the union: the effect of economic adjustment on support for democracy in Europe

As often pointed out in the literature on the European debt crisis, the policy programme of austerity and internal devaluation imposed on countries in the Eurozone's periphery exhibits a lack of democratic legitimacy. This article analyses the consequences these developments have for democratic support at both the European and national levels. We show that through the policies of economic adjustment, a majority of citizens in crisis countries has become ‘detached’ from their democratic political system. By cutting loose the Eurozone's periphery from the rest of Europe in terms of democratic legitimacy, the Euro has divided the union, instead of uniting it as foreseen by its architects. Our results are based on aggregated Eurobarometer surveys conducted in 28 European Union (EU) member states between 2002 and 2014. We employ quantitative time-series cross-sectional regression analyses. Moreover, we estimate the causal effect of economic adjustment in a comparative case study of four cases using the synthetic control method.

Essays on Inequality and Integration

Inequality and integration have been sociology’s two key paradigms since the classics, associated with the names of Marx and Durkheim and Europe’s current economic crisis has forcefully reinvigorated their joint relevance. Above all, the debt crisis has fueled the wheel of social inequality: cash-starved states are further forced to cut back on public expenditures, to minimize the margin for redistribution and to raise new challenges for the integration policies addressing the emerging disparities. At the same time, global environmental and demographic problems, intertwined with escalating migration pressure, tear at the texture of European and all Western societies, in particular, the unequal impact of climate change and the unequal distribution of population growth make migration and integration paramount public policy issues and a soaring source of social conflict. In principle, the inequalities engendered by these cascading processes are also an opportunity. They increase the diversity of society and can bring about innovation and growth. Our desire and ability for social integration depends, above all, on the ultimate balance between these advantages and disadvantages. The chapters in the volume concentrate on the opportunities as well as the risks associated with these social changes from various angles. They are a handpicked set of outstanding contributions from the Congress of the Swiss Sociological Association that took place at the University of Bern, June 26–28, 2013.

Credibility for sale

We develop a model where a sovereign’s incentive to repay its debt depends on the identity of its creditors. Higher exposure to official lenders improves incentives and thus credibility, for instance, because default would jeopardize the benefits from membership in a club (such as EU or EMU). But higher exposure also carries costs, because of reduced flexibility ex post and because official lenders may collude to extract rents. We characterize the equilibrium composition of debt across creditor groups as well as equilibrium debt prices. Our model can account for an important— and still unexplained—feature of sovereign debt crises: Official lending to sovereigns takes place only in times of debt distress and carries a favorable rate. It also offers a novel perspective on the interaction between deficits, debt overhang and the availability of official funds in determining default risk.