Demands of ‘Fiscal Union’. Concerned over debt crisis, the EU have responded by threatening to redraw the Lisbon treaty and imposing harsher penalties on countries who exceed budget limits.
Political Will. There is an old expression ‘if it’s not hurting, it’s not working.’ mentality. Perhaps this influenced the UK Conservative party – who were keen to make bold spending cuts in their first year of office. Certainly in US, calls for austerity agree with certain political ideologies which advocate lower government spending.