The EU/IMF financial stabilisation process in Latvia and its implications for labour law and social policy

Industrial Law Journal

Volumn 41, Issue 3, 2012, Pages 305-327

  Dahan, Samuel ^a  

^a UNIVERSITY OF CAMBRIDGE   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84866393953     PISSN: 03059332     EISSN: 14643669     Source Type: Journal    
DOI: 10.1093/indlaw/dws030     Document Type: Article

References (96)

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3. Latvia experienced the sharpest downturn in the EU, with an 18% fall in GDP in 2009 between 2007 and 2009.
4. See Council of the European Union, Second Joint Assessment by the Social Protection Committee and the European Commission of the Social Impact of the Economic Crisis and of Policy Responses (2009) 16169/09 ADD 1.
5. Many economists argued that devaluation was not only necessary but also inevitable, see P. Krugman, 'European Crass Warfare', Paul Krugman Blog, 15 December 2008.
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21. See also N. Giger, The Risk of Social Policy? (New York: Taylor & Francis, 2010) on the consequences of welfare state retrenchment on voting choices.
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35. The reluctance of the EU/IMF to cover the Latvian financing in full seems at first rather surprising as the amount of money required is trivial in comparison to other programmes (that of Greece for instance). However, there seem to be several reasons that the EU/IMF did not cover the financing needs completely. First, the lenders are not willing to cover any funding needs completely as this would take away incentives to reform from national governments. Secondly, national co-funding is also important for national ownership. Finally, Latvia was financed by the Balance of Payments mechanism that is available only for non-eurozone members, and the financing capacity of this mechanism is not as great as that of the EFSF and ESM that apply to Greece and other Eurozone members.
36. Commission (EC), Economic and Financial Affairs, 'Latvia' (Economies of the Member States, 27 June 2011) http://ec.europa.eu/economy_finance/eu/countries/latvia_en.htm (accessed 19 June 2012).
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40. Krugman (n.3).
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42. Åslund and Dombrovskis (n.12) 78.
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55. European Commission (n.25).
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57. Programmes in El Salvador, Ethiopia, Ireland and Portugal also show a limited shift in IMF policy stance. See R. Rowden, 'Doing a Decent job? IMF Policies and Decent Work in Times of Crisis' (European Network on Debt and Development, October 2009).
58. This concept has been recently espoused by a Global Social Policy Advocacy Alliance, comprising the ILO, the UN Department for Economic and Social Affairs (UNDESA), UNICEF, the UN Chief Executives Boards for Coordination (UNCEB) and HelpAge International.
59. See definition at http://www.social-protection.org. (accessed 19 June 2012).
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67. S. Gupta, Social Issues in IMF-Supported Programs (Washington: International Monetary Fund, 2000).
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71. M. Weisbrot, 'CEPR Responds to the IMF's Reply and Defense of Its Policies During the World Recession' [2009] CEPR Paper.
72. Rowden (n.44).
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74. http://ec.europa.eu/europe2020/index_en.htm. (accessed 19 June 2012).
75. Regulation (EU) No. 1175/2011 of the European Parliament and of the Council amending Council Regulation (EC) No. 1466/97 on strengthening the surveillance of budgetary positions and the surveillance and coordination of economic policies (OJ [2011] L306/12).
76. Council Regulation (EU) No. 1177/2011 amending Regulation (EC) No. 1467/97 on speeding up and clarifying the implementation of the EDP (OJ [2011] L306/33); Council Directive 2011/85/EU on requirements for budgetary frameworks of the Member States (OJ [2011] L306 41)
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78. Regulation (EU) No. 1176/2011 of the European Parliament and of the Council of 16 November 2011 on preventing and correcting macroeconomic imbalances (OJ [2011] L306 25)
79. Regulation (EU) No. 1174/2011 of the European Parliament and of the Council of 16 November 2011 on enforcement measures to correct excessive macroeconomic imbalances in the euro area (OJ [2011] L306 8).
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87. Considering the interdependencies between different areas, the Europe 2020 strategy seeks to align macroeconomic policy developments and structural reforms within the 'European Semester' framework. Stability and Convergence Programmes (focused on fiscal issues) and National Reform Programmes (covering structural policies) are to be prepared together in the first half of each year.
88. Launched in 2011 Reg. 1175/2011 (OJ [2011] L306/12).
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