
Contents
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9.1 Overview 9.1 Overview
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9.2 Long-term consequences of bailouts 9.2 Long-term consequences of bailouts
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Individual perceptions Individual perceptions
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Electoral fortunes of establishment parties Electoral fortunes of establishment parties
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9.3 Democracy and political responsiveness 9.3 Democracy and political responsiveness
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Portugal: democracy with a choice Portugal: democracy with a choice
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COVID-19 and the return to political responsiveness COVID-19 and the return to political responsiveness
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Assessing democracy in critical times Assessing democracy in critical times
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9.4 Conclusion: democracy unstrained 9.4 Conclusion: democracy unstrained
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9 The Aftermath: The Long Term Effects of Financial Bailouts
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Published:April 2025
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Abstract
Chapter 9 concludes and opens avenues for future research. It begins by examining the long-term implications of financial assistance programmes. The main idea of this section is to test whether the political change induced by the bailouts persists once the conditions of the financial assistance programmes no longer apply. This analysis is conducted with both individual and country-level data. The second issue that this concluding chapter examines is policy responsiveness. This part of the chapter shows that when politicians decide to bring policy responsiveness back to the policy-making process, then some of the effects of the bailouts reverse. To show how this happens, the chapter focuses on the examination of the government of Antonio Costa in Portugal and on how the EU managed the economic stress of the COVID-19 pandemic. The chapter ends with a discussion about the main findings of this research.
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