A VISTA Mario Švigir

Guest Mario ŠvigerHosted by Gordana GehlencherMay 3, 2026

Mario Šviger

About this episode

What you'll hear in this conversation

When crisis hits, the first economic instinct is often to cut spending and retreat. But as economist Mario Švigir points out, this "first impulse to flee" often deepens the damage. His argument draws from history: Keynesian intervention rebuilt post-war Europe over three decades, stabilizing chaos before the long work of reconstruction could even begin. Švigir sees the COVID-19 pandemic not just as a crisis in itself, but as a "trial run" for future challenges, particularly those driven by climate change—where meteorological data, he says, will become as crucial to economic models as ROA and ROI. This conversation explores why the debate between austerity and intervention persists, how countries like Croatia have (or haven't) learned from past recessions, and why the state's role in stabilizing an economy during a sudden, external shock is less a choice and more a necessity. You'll leave understanding why the immediate instinct to cut and save isn't always the right one, and how a crisis can force a re-evaluation of what truly drives economic stability.

Insights from the conversation

What to take from this episode

The host observes that the economic debate still pits neoliberalism against Keynesianism, trying to solve new crises with old methods. Švigir argues that the old debates are insufficient because the crises themselves have changed: COVID-19, he says, "destroyed the normality of various processes that make up the economy," acting as an elemental disaster requiring a different type of response.

Švigir describes COVID-19 as a "good trial run" for the economy. The current crisis, he says, is a rehearsal for future climate-driven disruptions, meaning economists must expand their data sets: meteorological data will soon be as important to economic models as ROA and ROI.

The initial panic in Croatia led to calls to "cut, shorten, subtract" from the budget, but this impulse shifted. The first reaction in a crisis is often to retreat and reduce spending, but historical lessons show this only leads to deeper recession; resisting that initial impulse is a sign of learning.

Švigir uses the analogy of a sick person with a tumor who shouldn't run 400 meters and go on a low-carb diet. A country facing an economic crisis needs recovery and strengthening, not immediate austerity; imposing severe cuts during a downturn only worsens the condition.

Croatia's finance minister stated, "We will use all resources we have, even those we never conventionally considered." A crisis demands an expansive view of available resources, pushing beyond traditional economic tools; rigid adherence to conventional thinking in an unconventional crisis will always fall short.

The shift from subsidizing banks in 2008 to subsidizing jobs and income during COVID-19 highlights a critical lesson. While both are forms of state support, targeting employment directly supports the broader economy and prevents collapse, rather than solely shoring up the financial system.

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