‘Monnet’s Error?’. LEQS Discussion Paper No. 83/2014 November 2014

Guiso, Luigi and Sapienza, Paola and Zingales, Luigi (2014) ‘Monnet’s Error?’. LEQS Discussion Paper No. 83/2014 November 2014. [Discussion Paper]

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Abstract

Do partial steps toward European integration generate support for further steps or do they create a political backlash? We try to answer this question by analyzing the cross sectional and time series variation in pro-European sentiments in the EU 15 countries. The two major steps forward (the 1992 Maastricht Treaty and the 2004 enlargement) seem to have reduced the pro-Europe sentiment as does the 2010 Eurozone crisis. Yet, in spite of the worst recession in recent history, the Europeans still support the common currency. Europe seems trapped in catch-22: there is no desire to go backward, no interest in going forward, but it is economically unsustainable to stay still.

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