Economic interests and public support for the euro

Although economic theories have been advanced to explain public support for the common currency, we know very little about how public support for the euro has been affected by its economic impact. We hypothesize that concern about rising prices following the introduction of the euro may have dampened enthusiasm for the project. We use Eurobarometer data from 2000-2007 to examine how rising prices and other economic factors have shaped support for the euro. We find that while inflation has had a negative impact on support for the euro, this is offset by the positive effect of diffuse support for the European Union. This support, along with the impact of a strong currency, has led most (approximately two-thirds) of Europeans to be generally positive about the euro.