Political Economy of EMU. Rebuilding Systemic Trust in the Euro Area in Times of Crisis

Felix Roth ()

No 16, European Economy - Discussion Papers from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: This paper revisits the existent empirical evidence of a decline in citizens’ systemic trust in times of crisis for a 12-country sample of the euro area (EA12) from 1999 to 2014. They affirm a pronounced decline in trust in the periphery countries of the EA12, leading to particular low levels in the national government and parliament in Spain and Greece. They discuss the consequences of this decline for the political economy of Economic and Monetary Union and corroborate the strong and negative association between unemployment and trust. They provide evidence of the increase in unemployment in Spain and examine policy measures at the national and EU level to tackle unemployment. They revisit the evidence of the enduring support for the euro and discuss its relevance to crisis management. They elaborate upon the question of how to restore systemic trust without and with treaty change.

JEL-codes: C23 D72 E24 E42 E65 F50 G01 J0 O4 O52 Z13 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2015-09
New Economics Papers: this item is included in nep-eec, nep-mac, nep-mon and nep-pol
References: Add references at CitEc
Citations: View citations in EconPapers (5)

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Related works:
Chapter: Political Economy of EMU: Rebuilding Systemic Trust in the Euro Area in Times of Crisis (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:euf:dispap:016

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