Managing Austerity: Comparing municipal austerity plans in the Netherlands and North Rhine-Westphalia

Abstract

This article attempts to clarify the relationships between the politico-administrative system and responses to austerity by comparing municipal austerity plans in the Netherlands and North Rhine-Westphalia (NRW). Although austerity is a major topic in both states, the approaches differ. In our sample, Dutch municipalities have used the crisis as an opportunity to realize reforms, whereas NRW municipalities have regarded the challenge as a temporary issue and chosen fiscal discipline and stability. Although municipalities seem to deploy similar measures, an in-depth analysis of austerity plans illustrates a wider variety in chosen responses. This variety is shaped by financial autonomy and administrative culture.