The Hidden Opposition to a Fiscal Union in Southern Europe: A Conjoint Analysis of Attitudes on Economic Policy in Italy

What explains and structures the attitudes toward EMU economic policy reforms? In June 2014, we have administered to 3026 Italians a conjoint analysis to assess the measures they support and the dilemmas facing government's policy responses to citizens’ preferences. Fighting unemployment, even at the expense of higher inflation, is the main priority. Low unemployment is even more important than keeping the euro. There is no support for downsizing public services, while there is opposition to both supranational oversight of national budgets and expansion of EU fiscal capacity. The left-right divide structures these positions in an internally incoherent manner. Left-wing respondents defend the single currency, but they are more inflation tolerant and oppose spending cuts. Right-wing participants are critical of the euro and oppose EU budgetary control and spending, but they support national fiscal consolidation. These results shed new light on the debates on fiscal union and policy responsiveness.