Entering a currency union without any political union European countries have taken a gamble: will the needs of the currency union force a political integration (as anticipated by Monnet) or will the tensions create a backlash, as suggested by Kaldor, Friedman and many others? We try to answer this question by analyzing the cross sectional and time series variation in pro-European sentiments in the EU 15 countries. The 1992 Maastricht Treaty seems to have reduced the pro-Europe sentiment as does the 2010 Eurozone crisis. Yet, in spite of the worst recession in recent history, the Europeans still support the common currency. Europe seems trapped: there is no desire to go backward, no interest in going forward, but it is economically unsustainable to stay still.
We would like to thank Tarek Hassan, Paola Giuliano, Gerard Roland, and three anonymous referees for very useful comments and Luca Riva and Riccardo Marchingiglio for very dedicated research assistantship. Luigi Zingales gratefully acknowledges financial support from the Center for Research in Security Prices (CRSP) and the Initiative on Global Markets at the University of Chicago. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Luigi Guiso, Paola Sapienza, Luigi Zingales; Monnet’s error?, Economic Policy, Volume 31, Issue 86, 1 April 2016, Pages 247–297, https://doi.org/10.1093/epolic/eiw003 citation courtesy of