Looking for traces of the Troika’s intervention in European road safety

Abstract

The recent economic crisis has required the bailout of some European States by the so-called Troika, with capital injections accompanied by financial austerity. This paper analyzes econometrically the impact of this support programme on road safety for an original panel data (1995–2015). The findings also corroborate the Kuznets curve hypothesis for traffic accidents in the long term. Regarding the impact of intervention in the short term, despite reductions in safety policy budgets due to austerity, financial support, and related austerity measures might have led to an improvement in road safety, reducing both the number of accidents and fatalities. Therefore, it seems that our result is more linked to the austerity measures than to the financial support given by the Troika.