Abstract

This paper examines the territorial development reforms in the federal state of Bavaria, Germany between 2008 and 2018 in light of the rise of austerity policies, introducing the concept of ‘austere federalism’ as a new state spatial process in the aftermath of the global financial crisis. Methodologically, the paper draws on the historical-materialist policy analysis and identifies three processes – municipalisation, competitisation, and responsibilisation – as key elements of a new hegemonic project. Our findings suggest that the years following the crisis saw a paradigm shift in spatial planning taking place, characterised by a carrot-and-stick policy of planning deregulation and austerity discipline. Rather than diminishing disparities, however, this shift runs the risk of exacerbating spatial inequality.

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