How does fiscal austerity affect trust in the European Union? Analyzing the role of responsibility attribution

Abstract

Austerity policies tend to be generally unpopular and national governments have been found to lose support when they implement such policies. However, during the sovereign debt crisis, governments of 'bailout countries' were pressured by European Union (EU) institutions to implement austerity measures. Did austerity measures affect trust in the EU? We investigate the impact of fiscal austerity on EU trust and how perceptions of responsibility and political ideology moderate this relationship. We apply multilevel models to Eurobarometer surveys and data from the International Monetary Fund (IMF) to analyze changes in trust in the EU in 27 EU-countries (2013-2015). Our results indicate that austerity has a negative effect on trust in the EU, but only among those who hold the EU responsible for austerity policies. We find no significant moderating effect of ideology.