Established ideas from established institutions: austerity and structural reforms in the Finnish economic policy debate

Abstract

ABSTRACTInstead of alternative economic ideas or institutional shifts, the post-financial crisis conjuncture has witnessed the persistence of neoliberal ideas and the strengthening of the institutions implementing them. Instructed by ideational institutionalism, this article analyzes the interplay between ideas and institutions by examining the public debate on economic policy in Finland during the euro crisis. We show how ideas formed by the dominant institutions of Finnish economic policy-making dominated the debate in the leading Finnish newspaper Helsingin Sanomat in the years 2009–2014. The media and the elites coalesced around a consensus built by the Ministry of Finance and EU institutions, which demanded austerity and structural reforms to the Finnish economy. Our findings support claims that established institutional forces prevent ideational shifts even during major crisis periods. The media takes part in this through its unwillingness to provide alternative viewpoints on consensual political issues, thus strengthening a post-democratic public sphere.