Safety in Numbers: Bailouts and the Decision to Join the EMU

We use unique survey data from Bulgaria to investigate the effect of recent bailouts on the perceived benefits of joining the European Monetary Union (EMU). The data show that the EMU is perceived as an insurance mechanism where member states can receive financial assistance in times of crisis. Notwithstanding the conditions attached to such help and the expected negative impacts of adopting the euro on the economy, the perception drives the public support for eurozone membership in Bulgaria.