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Explaining  

public

 

euroscepticism  

 

“A  case  study  of  six  European  Union  member  states  

between  1973  -­‐  2012“  

   

 

 

Ewoud  D.  van  Vliet               10295100  

January  2014     University  of  Amsterdam   Master  Thesis  Political  Science   International  Relations   Nationalism  &  Populism   Supervisor:  Tjitske  Akkerman  

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Index  

  Preface  ...  3   1.  Introduction  ...  3   1.1  Sub  questions  ...  5   1.1.1  Historical  differences  ...  5  

1.1.2  North  /  South  division  in  Europe  ...  6  

1.1.3  Costs  /  benefits  analyses  ...  7  

1.2  Relevance  ...  8   1.3  Composition  ...  8   2.  Theoretical  framework  ...  9   2.1  Conceptualization  ...  9   2.1.1  Euroscepticism  ...  9   2.1.2  Public  euroscepticism  ...  11  

2.1.3  The  increase  in  public  euroscepticism  ...  12  

2.1.4  Public  euroscepticism  and  the  euro  crisis  ...  14  

2.2  Operationalization  ...  17  

3.  Methodology  ...  17  

3.1  Country  selection  ...  18  

4.  The  financial  crisis  ...  21  

4.1  Origin  ...  21  

4.2  Crisis  management  by  the  EU  ...  25  

5.1  Research  ...  26  

5.1.1  Development  of  euroscepticism  and  the  euro  crisis  ...  26  

5.1.2  Countries  ...  28  

5.1.2.1  Germany  ...  28  

5.1.2.2  The  United  Kingdom  ...  30  

5.1.2.3  France  ...  31  

5.1.2.4  Greece  ...  33  

5.1.2.5  Italy  ...  34  

5.1.2.6  Spain  ...  35  

5.1.2.7  Conclusion  ...  38  

5.2  Historical  differences  of  public  opinion  with  regard  to  the  EU  ...  40  

5.2.1  Countries  ...  42   5.2.1.1  EU  ...  42   5.2.1.2  Germany  ...  43   5.2.1.3  Italy  ...  47   5.2.1.4  France  ...  50   5.2.1.5  Greece  ...  53   5.2.1.6  United  Kingdom  ...  56   5.2.1.7  Spain  ...  60   5.2.2.8  Conclusion  ...  63  

5.3  North  /  South  comparison  ...  64  

5.3.1  Public  opinion  on  the  euro  crisis  in  north  –  and  south  Europe  ...  66  

5.3.2  Public  opinion  on  life  in  north  –  and  south  Europe.  ...  68  

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5.4.1  How  does  EU  budget  distribution  work?  ...  73  

5.4.2  How  to  calculate  which  country  contributes  how  much?  ...  74  

5.4.3  Countries  ...  77   5.4.3.1  EU  ...  77   5.4.3.2  Germany  ...  78   5.4.3.3  United  Kingdom  ...  79   5.4.3.4  France  ...  80   5.4.3.5  Greece  ...  81   5.4.3.6  Italy  ...  83   5.4.3.7  Spain  ...  84   5.4.4  Conclusion  ...  85   6.  Conclusion  ...  86   Bibliography  ...  88    

Preface  

1.  Introduction    

 

During   the   course   of   the   past   seven   years   one   subject   has   dominated   world   news:  the  financial  crisis.  It  started  as  a  credit  crisis  in  the  United  States,  but  has   steadily  evolved  into  a  world  wide  financial  crisis.  In  Europe  it  took  on  the  form   of  a  sovereign  debt  crisis,  known  as  the  euro  crisis.  While  Greece  went  bankrupt,   Italy   and   Spain   were   bailed   out   at   the   last   moment   in   order   to   prevent   a   complete  financial  disaster.  Together  with  the  euro  crisis,  another  phenomenon   has  gained  increasingly  more  attention:  euroscepticism.  This  concept  has  been  a   topic   of   discussion  for   some   time   now   and   knows   various   forms   and   shapes.   After  the  ratification  of  the  Maastricht  Treaty  in  1992,  the  concept  began  to  gain   attention.  (Missiroli   2011:   1).   The   concepts   of   euroscepticism,   which   will   be   defined  later  in  this  thesis,  reflect  a  growing  discontent  regarding  the  European   Union.    

 

Today,  the  euro  crisis  is  still  very  relevant  and  the  results  are  more  visible  than   ever  before.  Even  in  traditionally  wealthy  European  countries,  such  as  Germany   and   France   the   crisis   have   struck   hard.   Billions   of   euros   have   been   donated   to   various  emergency  funds  devised  by  the  European  Central  Bank  (ECB)  and  the  

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International  Monetary  Fund  (IMF)  in  order  to  save  the  European  currency  and   with  that  the  financial  future  of  its  member  states.  Meanwhile,  critics  of  the  euro,   and  more  broadly  the  EU  have  gained  a  lot  of  support  throughout  the  continent   as  well  (Torreblanca  &  Leonard  2013:  5).    

And   even   though   Angela   Merkel   got   re-­‐elected   in   Germany,   anti-­‐EU   parties   received  more  votes  than  ever  before  (The  Guardian  24-­‐04-­‐2013).    

There’s   no   denying   in   the   fact   that   Europe   and   the   EU   in   particular   are   going   through  a  contesting  phase.  This  is  likely  the  result  of  the  outbreak  of  the  euro   crisis   and   events   that   occurred   preceding.   Expectations   of   a   quick   economic   recovery  are  low  and  thus  the  future  doesn’t  look  too  bright  for  EU  supporters   (CNN   5-­‐11-­‐2013).   Needless   to   say,   the   euro   crisis   does   seem   to   have   played   a   large   role   in   the   change   of   public   opinion   about   the   EU.   However,   other,   less   visible   factors   could   possibly   help   explain   why   euroscepticism   and   public   euroscepticism  in  particular,  has  been  rising  even  before  the  euro  crisis  began.   Hence,  the  research  question  will  be:  

 

“To   what   extent   has   the   euro   crisis   led   to   an   increase   in   public   euroscepticism   in   northern   –   and   southern   European   Union   member  states  and  what  is  the  influence  of  historical  differences   in  public  opinion,  and  costs  /  benefits  analyses  (CBA)?”      

 

The  euro  crisis  has  had,  and  still  has  profound  impact  in  every  European  country.   Jobs   were   lost,   salaries   reduced,   inflation   rose   and   prices   skyrocketed.   As   a   result,  citizens  started  losing  their  faith  in  the  institutions  that  should  have  seen   this   crisis   coming   and   failed   to   address   it’s   consequences   properly   once   it   hit.   The  enormous  scale  on  which  this  crisis  takes  place  thus  has  severe  results  for   every  European  citizen.  The  collapse  of  the  financial  sector  has  made  Europeans   aware   of   the   fact   that   capitalist   systems   are   more   fragile   than   expected   (Roth   2009:   204).  By   looking   at   public   euroscepticism   throughout   the   entire   EU,   a   significant   increase   is   noticeable   since   2007   when   the   global   financial   crisis   broke  out.  This  thesis  will  however  research  six  countries  individually  to  see  to   what   extent   public   euroscepticism   has   increased   as   a   result   of   the   crisis   or   if   there  are  other  causes  that  lie  at  the  root  of  this  increase.  Multiple  factors  seem  

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to  have  influence  in  shaping  EU’s  public  opinion  and  it  must  be  noted  that  after   the  outbreak  of  the  global  financial  crisis,  public  euroscepticism  has  spread  very   rapidly.  Even  though  no  country  can  deny  it’s  feeling  the  effects  of  the  euro  crisis,   some  countries  have  been  hit  significantly  harder  than  others  and  that  should  be   reflected   in   support   for   the   EU.   By   looking   at   the   euro   crisis  with   regard   to   support   for   the   EU,   the   expectation   is   that   the   strongest  increase   in   public   euroscepticism  happens  in  countries  that  have  been  hit  the  hardest,  i.e.  Greece,   Spain  and  Italy.      

 

There  are  at  least  three  different  underlying  factors  that  could  prove  to  have  a   significant   impact   on   public   euroscepticism   and   thus   the   eventual   outcome   of   this  research.  Since  it  is  highly  unlikely  that  the  euro  crisis  is  the  lone  cause  for   the  current  situation,  in  which  citizens’  support  for  the  EU  is  rapidly  fading;  it  is   necessary  to  take  other  elements  into  account.  Three  different  sub  questions  will   break   down   the   complexity   of   the   main   question   in   order   to   look   at   euroscepticism  through  different  lenses.  

1.1  Sub  questions  

1.1.1  Historical  differences  

 

Historical   differences   could   potentially   also   be   of   great   importance   in   order   to   understand   the   current  situation   in   Europe.   No   other   continent   has   so   many   different  languages,  cultural  habits  and  different  economies  on  such  a  small  piece   of   land.   Historical   and   current   differences   are   very   much   likely   to   be   of   great   influence   on   euroscepticism.   Now   that   Europe   is   starting   to   look   more   like   a   potential   political   union   instead   of   the   economic   one   it   has   always   strived   for,   these   differences   all   of   sudden   become   very   visible.   Questions   arise   over   if   Europe   should   aspire   to   unify   the   entire   continent   into   a   political   union.   This   could   subsequently   lead   to   a   sovereignty   crisis   in   all   European   countries   and   thus  explain  why  the  current  crisis  is  affecting  all  countries  instead  of  just  a  few.   In  other  words,  is  the  increase  in  public  euroscepticism  new,  or  is  it  merely  the   result   of   a   lingering   issue.  Therefore,   the   first   sub   question   will   be:   “To   what  

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extent   do   historical   differences,   with   regard   to   the   EU,   explain  current  public   euroscepticism  in  the  European  Union?”      

 

Moreover,   another   important   assumption   will   be   tested   when   assessing   historical  differences  with  regard  to  the  EU.  The  choice  of  the  six  countries  for   this   thesis   also   allows   research   on   public   euroscepticism   in   relation   with   the   time   of   joining   the   EU.   In   other   words,   are   the   citizens   of   three   of   the   EU’s   founding   countries,   i.e.   Germany,   Italy   and   France   less   Eurosceptic   throughout   the  history  of  the  EU  than  the  countries  that  joined  later,  i.e.  the  UK,  Spain  and   Greece?    

It  will  thus  be  interesting  to  research  if  historical  ties  with  the  EU  are  of  great   influence  when  looking  at  current  public  euroscepticism.  Assumingly,  Germany,   France  and  Italy  are  less  eurosceptic  because  of  their  role  in  shaping  the  EU  from   the   start.   If   this   proves   to   be   the   case,   it   shows   that   looking   at   history   is   very   useful  when  trying  to  understand  current  predicaments.    

1.1.2  North  /  South  division  in  Europe  

 

Secondly,   another   important   phenomenon   that   will   be   examined   is   a   likely   growing  division  between  northern  -­‐  and  southern  member  states.  The  countries   that  are  being  used  for  this  thesis  make  that  examination  possible.  A  distinction   of  northern  -­‐  and  southern  member  states  should  help  to  determine  if  the  impact   of  the  crisis  has  resulted  in  a  split  of  the  European  continent  in  terms  of  public   perception.  For  example,  public  euroscepticism  has  increased  strongly  in  Greece,   even  though  they  have  been  EU  supporters  for  most  of  their  time  as  a  member   state.   Meanwhile,   northern   EU   countries   tend   to   show   low   numbers   of   public   euroscepticism  but  might  have  changed  their  opinion  since  the  crisis.    

Furthermore   Serrichio   et   al.   (2013)   claimed   that   the   countries   where   public   euroscepticism   has   registered   the   most   pronounced   increase   are   those   that   have   been   most   hard-­‐hit   by   the   sovereign   debt   crisis   in   2010–11.   Accordingly,   after   the   outbreak   of   the   crisis,   public   euroscepticism   in   these   countries  has  increased  to  levels  that  match  or  exceed  the  EU  average  (Serrichio   et  al.  2013:  58).    

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It  will  thus  be  fascinating  to  witness  if  the  euro  crisis  has  been  dividing  Europe,   as   expected.   The   second   sub   question   will   thus   be:   “Has   the   euro   crisis   led   to   north  versus  south  division  in  Europe?”    

Clearly,  the  most  efficient  way  to  look  at  a  North/South  division  is  to  treat   them  as  blocs  in  order  to  compare  them  with  each  other.  By  including  broader   Eurobarometer   topics   regarding   life   in   the   EU   and   feeling   like   a   EU   citizen,   compared  with  euro  crisis  related  questions,  the  impact  of  the  euro  crisis  can  be   measured.    

1.1.3  Costs  /  benefits  analyses    

 

Costs  /  benefits  analyses  (CBA)  of  all  six  countries  should  provide  an  insight  in   where  lack  of  EU  support  possibly  stems  from.  By  selecting  the  before  mentioned   countries  it  will  be  interesting  to  see  if  one’s  financial  contribution  to  the  EU  has   an   effect   on   trust.   The   third   sub   question   thus   will   be:   “Will   net   contributing  

countries  feel  more  sceptical  about  Europe  than  net  recipient  countries?”    

 One   would   expect   that   countries   that   pay   substantially   more   than   they   receive   would   absolutely   feel   more   sceptical   towards   the   EU.   Assumingly,   this   leads  to  frustration  in  ‘contributing’  countries  that  will  result  in  increased  public   euroscepticism.    

 

To  measure  if  the  public  feels  its  country  has  benefited  from  being  a  member  of   the  EU,  the  CBA  will  be  compared  with  the  results  of  the  following  question  that   has  been  asked  by  Eurobarometer  surveys  since  1983:    

 

Taking  everything  into  account,  would  you  say  that  (our  country)   has  benefited,  not  benefited  or  don’t  know,  from  being  a  member   of  the  European  Union?  

 

After   having   established   a   possible   connection   between   CBA   and   the   public   opinion  in  the  examined  countries,  a  subsequent  conclusion  will  be  drawn  with   regard  to  the  increase  in  public  euroscepticism.  Net  contributors  –  and  recipients   will  be  distinguished  on  basis  of  absolute  terms  of  money.  This  comparison  will   ultimately   determine   if   traditional   workings   of   the   EU   such   as   the   decision   on  

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who  pays  what,  has  more  influence  on  shaping  public  opinion  than  a  major  event   such  as  the  euro  crisis.  

1.2  Relevance    

Since  we  are  amidst  troubled  times  regarding  the  future  of  the  EU  more  research   needs  to  be  done  in  able  to  help  explain  the  different  factors  that  possibly  have   helped  caused  a  European  economic  crisis.  Possible  explanations  should  help  to   understand  the  complexity  of  the  problems  Europe  is  facing  and  could  be  useful   in   order   to   search   for   solutions.     The   future   of   a   united   Europe   looks   grimmer   than  ever  before  and  requires  thorough  but  secure  handling  by  Europe’s  policy   makers.    

1.3  Composition    

In   the   second   chapter   a   theoretical   framework   will   explain   the   concept   of   euroscepticism.  Important  theories  and  findings  regarding  the  subject  will  show   the  need  for  how  much  there  is  still  to  be  done.  

Subsequently,  in  the  third  chapter  a  brief  history  of  the  euro  crisis  will  be   presented.  This  chapter  covers  the  start  of  the  crisis  in  the  United  States  and  will   explain  the  implications  it  has  had  ever  since  it  evolved  into  a  euro  crisis.  It  will   determine  what  role  the  crisis  has  played  in  each  country  individually  and  will   therefore  help  to  understand  the  current  attitude  of  its  citizens.  Furthermore,  the   most   important   examinations   on   the   euro   crisis   with   regard   to   CBA,   a   north/south   distinction   and   historical   differences   will   be   highlighted   and   explained.   In   the   fourth   chapter,   the   method   of   research   will   be   described   and   subsequently   in   the   fifth   chapter   the   results   of   the   conducted   research   will   be   described  and  analysed.  The  sixth  chapter  will  present  the  conclusion  as  well  as   the   answer   to   the   main   question   of   this   thesis.   A   bibliography   and   appendices   will  conclude  this  thesis.  

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2.  Theoretical  framework  

2.1  Conceptualization    

This  chapter  will  first  elaborate  on  the  concept  of  euroscepticism.  It  will  mainly   depict  the  various  definitions  of  euroscepticism  and  underpin  why  the  chosen   notion  of  public  euroscepticism  is  most  useful  for  this  thesis.  Since  

euroscepticism  can  be  defined  and  interpreted  in  different  ways,  it  is  important   to  delimit  the  research  that  will  be  conducted  in  this  thesis,  while  simultaneously   not  neglecting  that  other  possible  approaches  might  produce  differing  outcomes.     Furthermore,  theories  on  the  financial  crisis,  and  the  euro  crisis  and  will  map  the   current  debate  about  these  issues.    

2.1.1  Euroscepticism    

 

The  concept  of  euroscepticism  has  many  different  definitions.  In  order  to  choose   the  most  appropriate,  the  most  common  definitions  will  be  mentioned  and   explained.  

Taggart  first  introduced  euroscepticism  as:  ‘it  expresses  the  idea  of  

contingent,  or  qualified  opposition,  as  well  as  incorporating  outright  and   unqualified  opposition  to  the  process  of  European  integration’  (Taggart  1998:  

366).  Paul  Taggart  and  Alex  Szczerbiak  later  distinguished  two  forms  of   euroscepticism  namely,  ‘hard’  and  ‘soft’  euroscepticism.    

Hard  euroscepticism,  according  to  the  authors,  is  defined  as  follows:  “where  

there  is  a  principled  opposition  to  the  EU  and  European  integration  and  therefore   can  be  seen  in  parties  who  think  that  their  counties  should  withdraw  from  

membership,  or  whose  policies  towards  the  EU  are  tantamount  to  being  opposed  to   the  whole  project  of  European  integration  as  it  is  currently  conceived”  (Taggart  &  

Szczerbiak  2002:  7).  This  form  thus  opposes  the  EU  in  general.  Supporters  of  this   view  feel  that  European  integration  has  a  negative  effect  on  national  sovereignty.   The  greatly  reduced  importance  of  national  borders  leads  them  to  believe  that   Europe  is  slowly  becoming  too  powerful.  Examples  of  hard  euroscepticism  are   for  instance  single  issue  or  anti-­‐EU  parties.  

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Soft  euroscepticism  on  the  other  hand  is  defined  as:  “where  there  is  NOT  a  

principled  objection  to  European  integration  or  EU  membership  but  where   concerns  on  one  (or  a  number)  of  policy  areas  lead  to  the  expression  of  qualified   opposition  to  the  EU,  or  where  there  is  a  sense  that  ’national  interest’  is  currently   at  odds  with  the  EU’s  trajectory”  (Taggart  and  Szczerbiak  2002:  7).  

Partisans  of  the  softer  form  of  euroscepticism  are  not  necessarily  against  the  EU   but  are  concerned  with  specific  policies  and  the  direction  in  which  the  EU  is   heading.    

   

In  the  article  ‘The  two  sides  of  euroscepticism’  (2002)  by  Petr  Kapecky  and  Cas   Mudde,  euroscepticism  is  defined  as  a  distinction  between  ‘diffuse’  and  ‘specific’   support  for  European  integration.  By  diffuse  support,  they  mean  the  general   ideas  of  further  European  integration  and  by  specific  support  they  point  to   support  for  the  general  practice  of  European  integration,  meaning  the  EU  as  it  is   and  as  it  is  developing.  According  to  Kapecky  and  Mudde,  the  term  soft  

euroscepticism  presented  by  Taggart  and  Szczerbiak  is  defined  in  such  a  broad   manner  that  virtually  every  disagreement  with  any  policy  decision  of  the  EU  can   be  included  (Taggart  and  Szczerbiak  2002:  300).  Furthermore,  they  have  

developed  a  typology  as  can  be  seen  in  table  1.      

 Table  1:  Support  for  European  integration  according  to  Kapecky  and  Mudde      

  Support  for  European  integration  

Europhiles   Europhobes  

Support  for  EU   EU-­‐optimists   Euroenthousiasts   Europragmatists  

EU-­‐pessimists   Eurosceptics   Eurorejects  

   (Source:  Kapecky  and  Mudde  2008:  303)    

In  ‘Sources  of  Euroscepticism’,  Liesbeth  Hooghe  and  Gary  Marks  make  a   distinction  between  economic  and  political  euroscepticism.  In  the  early  years   scepticism  was  merely  aimed  at  further  market  integration  while  after  the   Maastricht  Treaty  of  1992  the  focus  was  shifted  to  defence  of  the  national   community  and  thus  became  more  political  (Hooghe  &  Marks  2007:  121).  

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Finally,  Leonard  Ray  argues  that  euroscepticism  is  “primarily  a  phenomenon  of   the  political  fringes”  (Hooghe  &  Marks  2007:112).  He  argues  that  ideological   extremities  are  key  to  growing  euroscepticism.  Radical  left  parties  are  against   European  integration  because  they  view  it  as  a  capitalist  project  that  makes  the   rich  richer  and  the  poor  poorer.  Radical  right  parties  feel  that  European  

integration  undermines  national  sovereignty  and  thus  are  opposed  to   transferring  more  power  to  Brussels.    

 

After  having  distinguished  the  most  well  regarded  forms  of  euroscepticism  it   becomes  clear  that  the  concept  allows  for  many  different  interpretations.   Scholars  have  focussed  on  different  aspects  of  euroscepticism  hereby  creating  a   broad  spectrum.    

The  Academic  Association  for  Contemporary  European  Studies  (UACES)  

combines  all  these  aspects  and  has  created  the  most  encompassing  definition  of   euroscepticism  thus  far:    

 

Euroscepticism  is  attitudes  and  opinions  represented  in   discourses  and  behaviours  (ranging  from  participation  in  

organized  political  action  to  voting  in  elections  or  referenda  and   responding  to  public  opinion  polls)  which  express  doubt  as  to   the  desirability  and/or  benefits  and/or  long-­‐term  viability  of   European  or/and  EU  integration  as  an  objective  or  in  the  general   framework  created  so  far  or  in  some  important  aspects  of  that   framework  of  institutions,  processes  and  policies  and/or  as  it  is   anticipated  to  occur  in  the  future  (UACES  2013)  

 

Since  this  thesis  mainly  covers  public  euroscepticism,  the  following  section  will   narrow  down  the  definition  in  order  to  focus  more  on  the  role  of  public  

euroscepticism.  

2.1.2  Public  euroscepticism  

 

It  is  important  to  distinguish  public  euroscepticism  from  the  aforementioned   examples  order  to  make  sure  that  the  concept  is  evident  when  it’s  discussed  

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throughout  this  thesis.  The  most  common  definition  of  public  euroscepticism  is:  

euroscepticism  is  negative  attitudes  towards  one’s  country’s  membership  of  the   European  Union  (Eichenberg  &  Dalton:  1993).    

This  is  however  a  very  broad  interpretation  of  the  concept  but  nonetheless   covers  the  main  aspects  of  it.  However,  since  the  increase  in  public  

euroscepticism  will  be  measured  according  to  the  data  of  the  Eurobarometer,  a   definition  of  public  euroscepticism  has  a  mere  descriptive  meaning  and  will   therefore  not  be  the  subject  of  further  testing.  The  results  of  the  following   question  will  determine  the  fluctuation  of  public  euroscepticism  in  the  six   countries  used  for  this  thesis  is:  

 

Generally  speaking  do  you  think  (our  country’s)  membership  is:  a   good  thing;  a  bad  thing;  neither  good  nor  bad  or  don’t  know?  

 

This  question  refers  to  the  fact  if  citizens  are  satisfied  with  their  country  being  a   member  of  the  EU.  Besides  that,  it  has  been  asked  by  the  Eurobarometer  survey   since  1973.  Its  answers  are  therefore  a  reliable  source  in  determining  the  state  of   euroscepticism  in  the  EU.  Furthermore,  the  answers  to  this  question  are  

reflected  in  a  statistical  graph.  Since  this  question  objectively  displays  the  state   of  the  public  opinion  there  is  no  need  to  collect  own  data.  

  It  must  be  noted  that  the  definition  used  in  this  thesis  is  merely  

appropriate  when  documenting  public  euroscepticism.  When  measuring  other   forms  of  euroscepticism,  different  definitions  might  be  better  suited.  However,   by  means  of  the  exposition  of  the  variety  of  shapes  of  euroscepticism,  the  logic  of   choice  for  this  definition  becomes  more  obvious.    

2.1.3  The  increase  in  public  euroscepticism  

 

Public  euroscepticism;  what  once  started  as  a  British  disease  has  now  spread   across  the  European  continent.  Support  for  the  EU  has  declined  tremendously   since  the  start  of  the  euro  crisis.  Fluctuation  is  not  new,  nor  is  public  

euroscepticism  but  what  does  seem  like  a  recent  trend  is  the  overall  decline  of   support.  Not  only  the  debtors  but  also  the  creditors  and  potential  member  states  

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seem  to  lose  faith  in  the  future  of  the  EU  as  the  statistics  presented  later  in  this   thesis  will  show.  

The  common  and  most  used  explanation  for  public  euroscepticism  was  the   presence  of  a  democratic  deficit.  People  felt  neglected  as  decisions  were  taken  in   Brussels  instead  of  their  national  governments  and  the  feeling  of  being  passed   over  was  subsequently  being  translated  in  a  decline  support  for  the  EU.  The  euro   crisis  that  we  are  amidst  of  is  something  different.  Way  before  the  euro  crisis   started,  the  EU  was  seen  as  an  institution  that  would  safeguard  the  single  market   (as  agreed  upon  in  the  Single  European  Act)  and  set  new  standards  for  the  size  of   valve  caps,  brightness  of  headlights  and  shapes  of  bananas.  National  

governments  would  still  have  the  power  to  decide  over  more  delicate  issues  that   need  cultural  understanding  and  should  not  be  subjected  to  rules  from  Brussels.     Assumingly,  since  the  outbreak  of  the  crisis,  people  in  creditor  countries   have  felt  a  strong  resistance  towards  ‘cleaning  up  the  mess  that  others  left’  i.e.   taking  responsibility  for  the  debts  that  were  made  in  other  countries  without   being  assured  that  this  won’t  happen  again.  This  assumption  will  be  examined   when  discussing  a  possible  north  /  south  division.  Apparently,  no  mechanisms   were  able  to  control  spending  in  countries  such  as  Greece  and  Spain.  With   demands  of  the  European  Central  Bank  (ECB)  for  structural  domestic  reforms   many  feel  that  EU  politicians  have  crossed  the  line  of  national  sovereignty,   creating  an  anti-­‐EU  feeling  throughout  the  continent.  They  seem  to  extend  their   role  from  debating  the  shape  of  bananas  to  interfering  in  discussions  about   salaries,  taxes  and  pensions,  which  lies  at  the  heart  of  national  democracies  and   social  welfare.  Meanwhile,  an  increasing  amount  literature  is  related  to  the   question  if  northern  EU  citizens  feel  as  if  the  EU  has  failed  to  control  the  policies   of  its  southern  neighbours.  It  is  assumed  that  they  have  a  sense  of  victimhood,   which  is  easy  to  understand.  Receiving  responsibility  for  another  one’s  problems   rubs  a  lot  of  citizens  the  wrong  way.  In  southern  European  countries  on  the   other  hand,  the  EU  looks  like  it  is  taking  over  their  national  governments  by   implementing  all  kinds  of  new  rules  and  policies.  No  matter  who  is  chosen  in   government,  the  new  rules  can’t  be  changed  or  challenged.  This  of  course  leads   to  a  loss  of  self-­‐determination  and  the  EU  seemingly  gets  the  blame  for  that.   Professional  services  firm  Ernst  &  Young  claims  that  euro  zone  countries  are  

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now  at  their  most  economically  and  politically  divergent  since  the  early  2000s,   according  to  their  "convergence  indicator",  which  takes  into  account  variables   including  gross  domestic  product,  inflation,  unemployment  rates  and  

government  balances  (Ernst  &  Young  2013).  

For  the  future  it  will  be  interesting  to  witness  how  this  process  will   unfold.  If  economic  growth  picks  up,  public  euroscepticism  in  the  EU  will   probably  decline.  It  happened  in  the  past  and  even  though  this  situation  is   different,  a  similar  outcome  can  be  expected.  Since  the  euro  crisis  covers  the   entire  continent  and  not  just  a  few  countries  or  a  region  it  will  be  fascinating  to   see  how  the  EU  is  going  to  deal  with  the  waning  of  support  and  the  way  it  will   deal  with  its  citizens.  High  public  euroscepticism  could  potentially  become  a   large  problem.  Not  only  does  it  undermine  Europe’s  unification  process  but  it   also  puts  pressure  on  national  governments.  Citizens  of  EU  member  states  blame   the  outbreak  and  results  of  the  financial  crisis  at  least  partially  on  failed  policies   of  their  national  governments.  In  the  northern  European  countries,  growing   discontent  arises  about  the  amount  of  money  they  had  to  donate  to  emergency   funds  in  order  to  rescue  their  southern  neighbours.  Meanwhile,  in  the  southern   European  countries,  Brussels  is  perceived  as  the  villain  that  interferes  in  their   national  politics.  Both  tendencies  have  assumingly  the  same  cause  and  the  same   result:  a  strong  increase  in  public  euroscepticism.  It  will  be  however  important   to  look  at  the  change  in  percentages.  The  surveys  of  the  Eurobarometer  should   give  us  more  insight  in  the  fluctuation  of  public  euroscepticism,  which  could  in   turn  be  compared  to  the  timeline  of  the  euro  crisis.  It  is  therefore  critical  to  also   take  other  possible  explanations  into  account  such  as  historical  difference  and   CBA.  Only  when  looking  at  various  explanations  is  it  possible  to  draw  

conclusions  about  the  cause(s)  of  public  euroscepticism.  

2.1.4  Public  euroscepticism  and  the  euro  crisis  

 

The  most  likely  culprit  for  the  increase  in  public  euroscepticism  is  the  global   financial  crisis  and  in  its  wake  the  euro  crisis.  Fabio  Serrichio,  Myrto  Tsakatika   and  Lucia  Quaglia  (2013)  have  conducted  an  exquisite  research  to  the  link   between  public  euroscepticism  and  the  euro  crisis  that  will  be  discussed  briefly.  

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Their  main  findings  have  led  to  a  call  for  more  research  on  this  barely  cultivated   subject.  They  argue  that  the  euro  crisis  did  not  bring  back  economic  factors  as   the  most  important  source  of  public  euroscepticism.  

 

According  to  their  research,  national  identity  and  political  institutions  play  the   most  important  role  in  explaining  public  euroscepticism.  They  conclude  their   research  by  claiming  that  the  economic  explanation,  in  Europe’s  case  the  euro   crisis,  has  very  limited  analytical  leverage.  They  determine  that  although  there   has  been  a  considerable  change  in  the  level  of  public  euroscepticism,  the   financial  crisis  is  hardly  the  only  catalyst.  Based  on  testing  the  explanatory   power  of  the  main  paradigms  in  the  literature,  in  this  case  being  economic  crisis   and  its  influence,  turn  out  to  have  less  effect  on  public  euroscepticism  than  they   expected.  Meaning  that  it  is  highly  unlikely  that  the  financial  crisis  has  a  direct   effect  on  the  increase  in  public  euroscepticism  (Serrichio  et  al.  2013:  61).    The   deepening  of  the  EU,  meaning  that  Brussels  acquired  more  competences,   combined  with  the  widening  of  the  EU  (enlargement  to  central  and  Eastern   European  countries)  led  to  a  fundamental  shift  in  focus.  To  wit,  the  EU  had  

become  not  only  an  economic  powerhouse,  but  also  it  started  to  look  like  it  was  a   political  actor.  The  public  thus  felt  as  if  the  EU  was  getting  too  powerful  

compared  with  national  governments.  Serrichio  et  al.  (2013)  are  emphasizing   this  when  they  conclude  that  there  is  a  positive  causal  relationship  between  the   exclusive  national  identity  and  euroscepticism  (Serrichio  et  al.  2013:  51,  61).   Exclusive  national  identity  refers  to  citizens  feeling  attachment  only  to  their   nation  and  not  to  Europe  and  the  EU  (Hooghe  and  Marks  2007:  120).  

Interestingly,  Serrichio  et  al.  (2013)  discern  a  trade-­‐off  between  confidence  in   national  institutions  and  confidence  in  EU  institutions.  During  the  first  stage  of   the  crisis,  citizens  merely  looked  at  their  respective  national  governments  for   solutions.  However,  when  the  financial  crisis  evolved  into  a  sovereign  debt  crisis   that  affected  many  European  countries  severely,  citizens  started  to  look  at  EU.   When  the  EU  started  to  flex  its  muscles  by  implying  harsh  sanctions,  eurosceptic   tendencies  started  to  rise  once  again  (Serrichio  et  al.  2013:  64).  

The  euro  crisis  seems  to  cover  a  whole  range  of  problems  that  are  much  more   daunting  than  assumed  beforehand.  According  to  the  research  of  Serrichio  et  al.  

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(2013),  exclusive  national  identity  is  becoming  an  area  of  debate  and  in  times  of   crisis  people  do  seem  to  lose  their  faith  in  the  European  project  (Serrichio  et  al.   2013:  62).  Has  the  EU  overplayed  its  hand  in  1992  by  aiming  for  a  more  cohesive   union  in  the  form  of  a  shared  currency  and  inclusiveness?  The  question  remains   if  this  current  wave  of  euroscepticism  is  just  another  recrudescence  or  if  we  are   facing  a  crucial  time  regarding  the  future  of  the  EU.    

In  the  article  ‘The  Global  Economic  Crisis  and  the  Cohesion  of  Europe’  ,  Alun  Jones,   Julian  Clark  and  Angus  Cameron  (2010)  focus  much  more  on  the  perception  the   history  of  Europe  and  the  role  in  which  crises  have  formed  Europe  to  what  it  has   now  become.  According  to  Jones  et  al.  Europe  can  be  understood  as  a  creature  of   crisis.  Therefore,  the  latest  crisis  to  hit  Europe  is  yet  another  test  of  resiliency  for   the  continent  (Jones  et  al.  2010:  37).  The  mere  existence  of  the  EU  is  due  to  the   fact  that  European  politicians  were  trying  to  protect  their  economies.  During  the   most  recent  crisis  this  statement  seems  to  be  emphasized.  When  Greece’s  

financial  problems  became  apparent,  the  initial  reaction  of  other  national   governments  was  trying  to  protect  their  banks  and  all  of  sudden  Europe  didn’t   look  as  unified  as  it  claims  to  be.    

 

An  obvious  explanation  for  this  kind  of  behaviour  is  that  European  countries  are   so  different  in  culture,  language  and  mentality  that  it  can  be  debated  if  unifying   so  many  different  states  is  a  desirable  goal.  When  the  ECSC  was  founded,   economic  prosperity  and  the  prevention  of  another  world  war  were  the  main   motives.  Nowadays,  the  possibility  of  another  physical  war  on  the  European   continent  seems  rather  slim  and  cooperation  between  states  could  be  continued   in  a  more  voluntary  fashion  (Kaldor  2012:  125).  Without  the  risk  of  a  looming   war,  countries  may  have  lost  sight  of  the  necessity  of  a  unified  Europe  and   therefore  turn  to  protectionist  behaviour.  Needless  to  say,  the  EU  still  has  

relevance  in  today’s  Europe  in  terms  of  agricultural  development,  redistribution   of  wealth  and  the  free  movement  of  goods  and  persons,  but  might  have  

overplayed  its  hand  when  aiming  for  a  federal  Europe.  The  goals  of  the   Maastricht  Treaty  were  highly  ambitious  and  the  importance  of  different  

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overlooked.  The  rapid  unification  process  that  he  EU  contemplated  has  possibly   strengthened  the  case  of  euroscepticism  while  neglecting  historical  backgrounds   2.2  Operationalization    

 

This  thesis  will  cover  the  public  side  of  euroscepticism  and  thus  other   interpretations  and  viewpoints  require  different  approaches  and  research   questions.    

 

Furthermore,  the  research  will  be  focussed  on  the  role  that  the  euro  crisis  plays   in  determining  public  euroscepticism.  The  research  by  Serrichio  et  al.  (2013)  has   covered  this  topic  as  well  but  has  not  taken  historical  differences,  a  regional   divide  and  costs  /  benefits  into  account.  Therefore,  the  research  conducted  in   this  thesis  will  build  upon  the  notion  that  the  euro  crisis  has  impacted  public   euroscepticism  severely,  but  will  also  look  further  to  understand  public  

euroscepticism  more  thoroughly.  Taking  history,  costs  /  benefits  and  a  north  /   south  comparison  into  account,  combined  with  the  effects  of  the  current  euro   crisis  is  unprecedented  and  will  not  only  research  current  public  euroscepticism   but  will  also  try  to  explain  its  origin  and  sensitivity.  

 

The    side  of  euroscepticism,  which  relates  to  the  political  aspect  of  the  concept,   such  as  demonstrated  by  Kapechky,  Mudde,  Sczcerbiak  and  Taggart,  has  been   documented  and  researched  frequently  and  thoroughly,  as  described  above.   Public  euroscepticism  with  regard  to  the  euro  crisis  has  howeverl  also  not  been   documented,  besides  Serrichio  et  al.,  as  of  yet.  Due  to  the  novelty  of  the  subject   there  is  still  plenty  to  be  researched  and  as  been  mentioned  before,  this  subject   only  covers  a  small  part  of  the  entire  euroscepticism  spectrum  but  nonetheless   could  contribute  to  a  broader  understanding  of  public  euroscepticism.    

3.  Methodology  

 

Since  this  thesis  focuses  on  public  euroscepticism  it  is  necessary  to  use  data  that   focuses   on   public   opinion.   Eurostat,   the   statistical   office   of   the   EU,   does   not  

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include   public   opinion   in   its   surveys   and   is   therefore   not   useful   for   this   thesis.   The  Eurobarometer  is  an  official  website  of  the  EC  and  has  been  monitoring  the   public  opinion  of  the  EU  member  states  since  1973.  Before  the  Internet  era  the   surveys  were  conducted  by  hand  and  have  been  digitalized  during  the  1990s.  In   it’s  current  form,  surveys  are  conducted  online.  

3.1  Country  selection    

This   thesis   will   consist   of   a   case   study  on   public   euroscepticism   in   six   EU   member  states,  over  an  extended  period  of  time.  The  choice  of  countries  is  based   on  geography,  historical  ties  and  role  in  the  EU.  By  examining  only  one  member   state  the  outcome  can’t  say  much  about  the  large  question  of  whether  or  in  what   ways  public  euroscepticism  corresponds  to  a  fundamental  crisis  for  the  EU.  But,   six   member   states   can   serve   as   an   example   of   the   problems   of   conceptualising   this   complex   phenomenon.   Six   countries   including   Germany,   Italy   and   France   founded   the   precursor   of   the   EU,   the   European   Coal   and   Steel   Community   (ECSC).   The   ECSC   was   an   initiative   of   the   French   minister   of   Foreign   Affairs,   Robert  Schuman  as  a  way  to  prevent  another  war  between  Germany  and  France.   The   economic   benefits   that   those   three   countries   have   yielded   helped   their   countries   tremendously   and   laid   the   foundation   for   other   countries   to   join.  As   being   among   the   founding   countries,   it   made   them   part   of   the   most   important   players  in  a  unified  Europe.      

 

Germany  and  France  and  Italy  were  therefore  supportive  of  the  project  from  the   start.  Since  it  was  mainly  their  merit  that  the  ECSC  came  into  effect  in  the  first   place,  their  effort  in  order  to  make  it  a  success  had  to  be  guaranteed.  Germany   and   France   quickly   took   on   a   leadership   role   within   Europe.   Throughout   the   1970s  and  1980s  they  were  regarded  as  Europe’s  most  important  stakeholders,   their   economies   were   the   largest   and   with   the   leadership   of   Helmut   Kohl   in   Germany   and   Francois   Mitterand,   strong   political   support   for   the   EU   was   guaranteed.   The   public   opinion   however,   started   to   look   less   like   each   other   during   the   development   of   the   ECC/EU.   Currently,   Germany’s   public   opinion   remains   fairly   supportive   of   the   EU,   while   France’s   on   the   hand   has   become  

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strongly  eurosceptic.  Statistics  in  the  corresponding  chapter  will  illustrate  how   two  of  Europe’s  most  influential  countries  have  grown  increasingly  apart.      

Italy,   participant   from   the   start   in   1958   has   had   an   interesting   relationship  with  the  EU.  As  one  of  the  founding  fathers,  the  country’s  attitude   has  always  been  positive  but  it  needs  to  be  noted  that  during  the  course  of  the   last   ten   years,   Italy   has   looked   much   more   like   it’s   southern   European   neighbours  in  terms  of  a  strong  increase  in  public  euroscepticism.  Therefore,  it   will  be  interesting  to  compare  the  current  situation  in  Italy  with  it’s  traditional   counterparts   France   and   Germany   but   also   with   it’s   geographical   neighbours   Spain  and  Greece.    

Greece   and   Spain   both   joined   in   1981   after   decades   of   totalitarian   rule.   Economic   prosperity   and   the   dream   of   democracy   were   the   most   important   instigators   of   their   surge   for   membership.   Naturally,   the   first   few   years   were   seen   as   an   immediate   upgrade   over   the   previous   years   and   the   economies   in   both   countries   grew   as   never   before.   Things   began   to   change   after   1992   when   Europe  made  it  the  first  steps  towards  becoming  a  political  union.  Even  though   public  opinion  settled  down  in  the  mid-­‐nineties,  Greece  and  Spain  have  endured   a   spectacular   free   fall   in   terms   of   trust   in   Europe   largely   due   to   economic   setbacks  and  strong  sanctions  by  the  EU.  Both  countries  share  a  similar  history   when   it   comes   to   the   EU   but   that   will   be   explained   more   thoroughly   in   the   following  chapter.  The  fact  that  Greece  and  Spain  were  among  the  first  and  worst   countries  hit  by  the  crisis  made  them  interesting  cases  for  this  thesis.  Portugal  is   usually  mentioned  alongside  Greece  and  Spain  but  has  been  left  out  of  this  thesis   because   of   its   close   ties   with   Spain.   The   two   countries   are   referred   to   as   the   Iberian  Peninsula  and  in  the  context  of  diversification;  the  decision  was  made  to   include  southern  countries  that  are  less  connected  in  terms  of  demography  and   history.    

 

Finally,   the   UK   joined   the   European   Economic   Community   (ECC),   another   precursor   of   the   EU   in   1973   after   extensive   negotiations.   Having   vetoed   accession  twice  before,  the  French  finally  accepted  the  UK  as  the  newest  member   of   the   European   project.   The   citizens   of   the   UK   however,   have   always   been   restrained  when  dealing  with  Europe.  The  decision  to  not  join  the  euro  highlights  

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their   turbulent   relationship   with   the   European   mainland.   From   a   historical   perspective,  including  the  UK  in  this  research  makes  sense  since  it  has  never  felt   a   strong   relationship   with   mainland   Europe   and   the   EU.   Therefore,   it   will   be   interesting  to  see  if  the  UK  proves  to  be  an  outlier.  Examining  if  the  euro  crisis,  or   any  other  important  financial  or  social  issues  in  general  have  had  an  effect  on  the   UK’s  public  opinion  in  the  past  will  help  to  explain  how  their  people  perceive  the   EU.  

 

The  choice  of  countries  is  thus  based  on  a  combination  of  history  regarding  the   EU,   i.e.   three   founding   countries   versus   three   countries   that   joined   the   EU   at   various   latter   stages.   By   comparing   the   public   opinion   regarding   the   EU   of   the   latter   three   countries   with   that   of   the   Germany,   France   and   Italy,   which   governments   partly   founded   the   EU,   the   relevance   of   including   history   in   the   debate  about  understanding  current  issues  will  be  determined.  

 

CBA  have  shown  that  Germany,  France  and  the  UK  have  been  in  the  top  5  of  net   contributors,  while  Spain,  Greece  and  Italy  are  among  the  top  net  recipient.  As  a   result,   by   choosing   these   six   countries,   the   two   opposite   sides   of   the   spectrum   can  be  compared  with  each  other  in  order  to  determine  the  influence  of  CBA  on   public  euroscepticism.  

 

The   north/south   division   will   be   measured   according   to   four   Eurobarometer   questions.   The   first   two   questions   are   euro   crisis   related,   while   the   other   two   cover  broader  aspects  of  the  EU  and  are  non-­‐  euro  crisis  related.  By  grouping  the   questions   into   two   separate   categories,   the   extent   to   which   the   euro   crisis  has   divided  Europe  will  become  visible.  The  two  questions  regarding  the  euro  crisis   are  as  follows:  “As  a  consequence  of  the  crisis,  you  feel  closer  to  other  EU  citizens?”   and  “The  worst  of  the  euro  crisis  is  still  to  come;  do  you  tend  to  agree  or  disagree?”     The  other  two  questions  relate  to  life  in  the  EU  in  general  and  are  therefore:  “Do  

you   feel   satisfied   with   the   life   you   live   in   the   EU”?   And:   “Do   you   feel   like   an   EU   citizen?”   The   answers   to   those   questions   will   help   determine   the   amount   of   influence   that   the   euro   crisis   has   on   public   opinion.   Since   the   latter   two   questions   reflect   a   much   broader   topic,   i.e.   life   in   the   EU   in   general,   it   will   be  

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interesting   to   see   if   there   is   a   distinction   between   the   public   opinion   in   the   researched   countries   with   regard   to   the   EU.   If   for   example   public   opinion   in   country   A   is   negative   towards   the   two-­‐euro   crisis   related   questions   but   rather   positive   towards   the   two   broader   EU   questions,   it   can   be   concluded   that   the   impact   of   the   euro   crisis   is   severe   in   country   A.   Furthermore,   when   the   public   opinion  of  country  B  is  fairly  positive  towards  the  euro  crisis  and  also  regarding   life  in  the  EU,  the  euro  crisis  probably  has  less  impact  on  the  public  opinion  in   country   B,   hereby   partly   explaining   behavioural   patterns   in   terms   of   public   euroscepticism.    

The   statistics   of   Eurostat   on   the   euro  crisis   were   included   to   provide   a   clear   view   on   the   development   of   the   euro   crisis   and   furthermore   show   the   effects   for   each   country   individually.   Eurostat   is   the   statistical   office   of   the   EU   and  provide  statistics  that  enable  comparisons  between  countries  and  regions.    

4.  The  financial  crisis  

 

In  order  to  understand  the  complex  predicament  Europe  is  currently  facing,  it  is   necessary  to  reconstruct  the  facts  leading  up  to  the  current  state  of  affairs.  The   euro  crisis,  with  all  its  implications  for  us  as  European  citizens,  is  the  result  of  a   global   financial   crisis   that   started   in   the   United   States.   A   brief   summary   of   the   events   leading   up   to   the   euro   crisis   should   help   grasp   the   complexity   of   the   situation.  

4.1  Origin    

The  roots  of  the  crisis  we  are  facing  today  are  global  in  reach,  various  and  very   complex.   However,   researches   have   reached   a   consensus   about   a   precipitating   factor   that   is   most   likely   the   cause   for   the   start   of   this   worldwide   crisis.   The   heavily   overleveraged   housing   market   of   the   United   States   is   regarded   as   the   main  abettor  (Crotty  2009:  564).  As  prices  of  property  began  to  fall,  confidence   in  institutions  that  should  have  intervened  disappeared.  During  the  year  2007  a   sudden  shortage  of  credit  led  to  a  strong  decline  of  US  consumer  spending.  As  a   result,  large  companies  had  to  cut  costs  and  as  a  result  labour  was  being  shed.  

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