Public support for the euro and trust in the ECB : the first two decades of the common currency

This paper examines the evolution of public support for the euro since its introduction as a virtual currency in 1999 , using a unique set of data not available for any other currency. We focus on the role of economic factors in determining the popularity o f the euro. We find that a majority of citizens support the e uro in each individual member country of the e uro a rea (EA) . T he economic crisis in the EA following the Great Recession led to a slight decline in public support, but the recent economic recovery h as strengthened that support , which is now approaching historical ly high levels after two decades of its existence. We detect a s imilar , but less pronounced upturn in trust in the ECB during the recovery . Our econometric work demonstrates that unemployment is a key driver of support behind the euro. Given these developments, w e discuss whether t he large and persistent majority support enjoyed by the euro equip s the currency to weather populist challenges du ring its third decade.