Economic crises and shifting political attitudes : impact of Eurozone crisis on creditor and debtor countries

Abstract

The Eurozone crisis had a significant impact on individual political preferences in both creditor and debtor countries. This thesis examines the extent to which the crisis affected Euroscepticism, satisfaction with democracy, and trust in political parties and institutions. Using Eurobarometer micro- data, the sample was divided into debtors (Greece, Spain, Portugal, Italy, and Ireland) and creditors (Germany, France, the UK, Belgium, and the Netherlands) and analyzed for three time periods: pre-crisis (2007), crisis-period (2010), and post-crisis (2014). The findings reveal that the crisis had a negative impact on individuals' preferences in both creditor and debtor countries during the crisis-period. Euroscepticism increased, satisfaction with democracy decreased, and trust in political parties, local and international institutions decreased. However, the situation returned to pre-crisis levels for creditors in the post-crisis period, while debtors continued to experience negative impacts. The results suggest that the Eurozone crisis had a profound and lasting effect on individual political preferences in debtor countries whereas the crisis has a temporary impact on individual preferences in creditor countries. In conclusion, this study highlights the importance of understanding the impact of the Eurozone crisis on individual political preferences, particularly in countries most affected by the crisis.