Support for European Fiscal Integration in the COVID - 19 Crisis

Concerns about Eurosceptic backlash constrained governments’ability to pursue fiscal integration in the euro crisis. During the COVID-19 pandemic, however, European governments agreed on an ambitious recovery fund establishing an unprecedented fiscal stabilization capacity. This development challenges the assumption that public opinion constrains EU governments and begs the question of whether, and under which conditions, citizens support European solidarity measures. Using a survey experiment on public support for a European pandemic recovery fund(PRF) in five European countries in 2020, we find remarkably high support for a joint European fiscal instrument, which, however, is sensitive to policy design. While cross-country differences reflect collective self-interest, there is considerable support for the PRF across all countries. Citizens’ left-right orientations, their pro-anti EU positions, and perceived economic risk from COVID-19structure differences within countries. While we study EU fiscal integration, the paper speaks to a larger debate on fiscal policy in federations.