This article examines the influence of exchange rate fluctuations on public support for the euro. Existing studies of the two euro referendums in Denmark and Sweden have explained the outcomes primarily in terms of static factors, thereby ignoring the fact that support fluctuates over time. This...

In the wake of a sovereign debt crisis, which was itself preceded by a banking crisis, the European Union (EU) is in the process of creating a banking union for the euro area. Such an integrated financial framework is considered necessary for completing Europe’s economic and monetary union....

When the Maastricht Treaty on European Union was finally ratified in 1993, many EU observers and participants expressed serious doubts that economic and monetary union (EMU) would ever take place. Nevertheless, five years later EMU took flight, on 1 January 1999, as planned. It is this puzzle...

Euro area countries suspended the excessive deficit procedure (EDP) of the Stability and Growth Pact in November 2003. Surprisingly perhaps, long-term European government bond-holders did not react: yields barely moved. Owing to its political nature, the EDP does not matter for investors. What...

When the global financial crisis hit the shores of Europe, after crossing the Atlantic, the Eurozone was considered a safe haven. After the first Greek bailout in May 2010, the discourse had now changed completely; the debt crisis was the euro's fault. As a result, some argued that Greece and...