Austerity in the context of "Disposable income"

Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pejoratively. In scholarly use, the term is often left undefined or used to describe a multitude of phenomena. However, it is primarily employed to delineate the societal transformation resulting from market-based reforms.

Neoliberalism is often associated with a set of economic liberalization policies, including privatization, deregulation, depoliticisation, consumer choice, labor market flexibilization, economic globalization, free trade, monetarism, austerity, and reductions in government spending. These policies are designed to increase the role of the private sector in the economy and society. Additionally, the neoliberal project is oriented towards the establishment of institutions and is inherently political in nature, extending beyond mere economic considerations.

The year 2012 marked the Diamond Jubilee of Elizabeth II being the 60th anniversary of the accession of Queen Elizabeth II on 6 February 1952. The only diamond jubilee celebration for any of Elizabeth's predecessors was in 1897, for Queen Victoria.

Following the tradition of the Queen's Silver and Golden Jubilees, commemorative events were held throughout the Commonwealth of Nations. In comparison to the previous Golden Jubilee, events in the United Kingdom were significantly scaled back due to the economic policies of the governing Conservative Party deeming excessive cost to the taxpayer amidst widespread austerity as inappropriate.

The euro area crisis, often also referred to as the eurozone crisis, European debt crisis, or European sovereign debt crisis, was a multi-year debt crisis and financial crisis in the European Union (EU) from 2009 until, in Greece, 2018. The eurozone member states of Greece, Portugal, Ireland, and Cyprus were unable to repay or refinance their government debt or to bail out fragile banks under their national supervision and needed assistance from other eurozone countries, the European Central Bank (ECB), and the International Monetary Fund (IMF). The crisis included the Greek government-debt crisis, the 2008–2014 Spanish financial crisis, the 2010–2014 Portuguese financial crisis, the post-2008 Irish banking crisis and the post-2008 Irish economic downturn, as well as the 2012–2013 Cypriot financial crisis. The crisis contributed to changes in leadership in Greece, Ireland, France, Italy, Portugal, Spain, Slovenia, Slovakia, Belgium, and the Netherlands as well as in the United Kingdom. It also led to austerity, increases in unemployment rates to as high as 27% in Greece and Spain, and increases in poverty levels and income inequality in the affected countries.

Causes of the euro area crisis included a weak economy of the European Union after the 2008 financial crisis and the Great Recession, the sudden stop of the flow of foreign capital into countries that had substantial current account deficits and were dependent on foreign lending. The crisis was worsened by the inability of states to resort to devaluation (reductions in the value of the national currency) due to having the euro as a shared currency. Debt accumulation in some eurozone members was in part due to differences in macroeconomics among eurozone member states prior to the adoption of the euro. It also involved a process of cross-border financial contagion. The European Central Bank (ECB) adopted an interest rate that incentivized investors in Northern eurozone members to lend to the South, whereas the South was incentivized to borrow because interest rates were very low. Over time, this led to the accumulation of deficits in the South, primarily by private economic actors. A lack of fiscal policy coordination among eurozone member states contributed to imbalanced capital flows in the eurozone, while a lack of financial regulatory centralization or harmonization among eurozone member states, coupled with a lack of credible commitments to provide bailouts to banks, incentivized risky financial transactions by banks. The detailed causes of the crisis varied from country to country. In several EU countries, private debts arising from real-estate bubbles were transferred to sovereign debt as a result of banking system bailouts and government responses to slowing economies post-bubble. European banks own a significant amount of sovereign debt, such that concerns regarding the solvency of banking systems or sovereigns are negatively reinforcing.

Euroscepticism, also spelled as Euroskepticism or EU-scepticism, is a political position involving criticism of the European Union (EU) and European integration. It ranges from those who oppose some EU institutions and policies and seek reform (Eurorealism, Eurocritical, or soft Euroscepticism), to those who oppose EU membership and see the EU as unreformable (anti-European Unionism, anti-EUism, or hard Euroscepticism). The opposite of Euroscepticism is known as pro-Europeanism.

The main drivers of Euroscepticism have been beliefs that integration undermines national sovereignty and the nation state, that the EU is elitist and lacks democratic legitimacy and transparency, that it is too bureaucratic and wasteful, that it encourages high levels of immigration, or perceptions that it is a neoliberal organisation serving the big business elite at the expense of the working class, that it is responsible for austerity, and drives privatization.

The 2011 Irish general election took place on 25 February 2011 to elect the 166 members of Dáil Éireann, the lower house of Ireland's parliament, the Oireachtas. Held amid a sharp economic downturn and the eurozone crisis, the election swept Fianna Fáil from power on one of the largest swings in Europe since 1945 and resulted in a Fine Gael–Labour Party coalition with a record majority.

Traditionally Ireland's dominant party and in government since 1997, Fianna Fáil's support declined after the near-collapse of the banking sector in 2008. With the economy in a deep recession, Taoiseach Brian Cowen's Fianna Fáil–Green Party coalition passed four austerity budgets and became highly unpopular. The government collapsed following its application for an international bailout in late 2010, which saw the so-called Troika take control of state fiscal policy. Cowen resigned as Fianna Fáil leader days before the Dáil was dissolved.

Greece faced a sovereign debt crisis in the aftermath of the 2008 financial crisis. Widely known in the country as The Crisis (Greek: Η Κρίση, romanized: I Krísi), it led to impoverishment and loss of income and property, and forced the government to carry out a series of sudden reforms and austerity measures. In all, the Greek economy suffered the longest recession of any advanced mixed economy to date and became the first developed country whose stock market was downgraded to that of an emerging market in 2013 (only starting to be reclassified back as a developed market by FTSE Russell in October 2025). As a result, the Greek political system was upended, social exclusion increased, and hundreds of thousands of well-educated Greeks left the country, though the majority of those emigrants had returned as of 2024.

The crisis started in late 2009, triggered by the turmoil of the world-wide Great Recession, structural weaknesses in the Greek economy, and lack of monetary policy flexibility as a member of the eurozone. The crisis included revelations that previous data on government debt levels and deficits had been underreported by the Greek government; the official forecast for the 2009 budget deficit was less than half the final value, and after revisions according to Eurostat methodology, the 2009 government debt was raised from $269.3bn to $299.7bn, about 11% higher than previously reported.