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Twelve From financial crisis to welfare retrenchment: assessing the challenges to the Irish welfare state

  • Mairéad Considine and Fiona Dukelow
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Social Policy Review 24
This chapter is in the book Social Policy Review 24

Abstract

This chapter considers the impact of the global economic crisis on the Irish welfare state. It begins by focusing on the vulnerability of Ireland’s highly neo-liberalised and financialised economy and the debt burden of the ensuing banking crisis which was borne by the state and ultimately resulted in the intervention of the EU/IMF. This sets the context for examining how predominant crisis discourses tended to conflate the fiscal crisis with profligate public spending, leading to a perception that the welfare state is itself part of the problem. The chapter then looks at how the welfare state has also been challenged by the social costs of the recession while its capacity to cope has been weakened by retrenchment. The challenges for social protection are highlighted in particular. The final part takes stock of the politics of retrenchment and what bearing this may have on the welfare state post-crisis.

Abstract

This chapter considers the impact of the global economic crisis on the Irish welfare state. It begins by focusing on the vulnerability of Ireland’s highly neo-liberalised and financialised economy and the debt burden of the ensuing banking crisis which was borne by the state and ultimately resulted in the intervention of the EU/IMF. This sets the context for examining how predominant crisis discourses tended to conflate the fiscal crisis with profligate public spending, leading to a perception that the welfare state is itself part of the problem. The chapter then looks at how the welfare state has also been challenged by the social costs of the recession while its capacity to cope has been weakened by retrenchment. The challenges for social protection are highlighted in particular. The final part takes stock of the politics of retrenchment and what bearing this may have on the welfare state post-crisis.

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