EU fiscal governance and the managerial reformatting of neoliberal constitutionalism

This article analyses the EU’s Stability and Growth Pact (SGP) to challenge interpretations of neoliberalism as an international project. The fiscal rules of the SGP are a paradigmatic example of how neoliberalism uses constitutional techniques to put limits on national democracy. These rules, however, have never worked as intended with adherence having been the exception rather than the norm. Although scholars readily admit neoliberal rules misfire in practice, conceptualisations of neoliberalism have remained largely unscathed. In contrast, this article argues that techniques of budgetary planning have had a more crucial impact on neoliberal fiscal governance than legal rules. In the case of the SGP, supranational actors have been empowered not by their capacity to put constitutional limits on public expenditure, but by analysing and intervening in the purposes and uses of public finance through managerial techniques of budgetary planning. In making this argument, I argue that neoliberal rules matter to international fiscal governance only through their failure. Instead, supranational institutions have been empowered in the neoliberal era through a managerial reformatting of governance.