Resumen de The Political Economy of Structural Reform and Fiscal Consolidation Revisited

Hans Peter Grüner

• Europe is going through an unprecedented period of Öscal consolidation and structural economic policy reforms. However, reforms undertaken in times of Önancial market stress may not be politically viable in the long run if they lack the necessary social balance. This paper studies the distributional consequences of European Öscal consolidation and structural reforms and the scope for further reforms. Suggestions for the e¢ cient bundling of reforms are made. The paper also makes suggestions regarding the strategy of international advice to countries which need structural reforms and it discusses the design of international incentives and a possible role for international mediation.