NO TIME TO PLAY: THE EFFECT OF NEXT GENERATION EU FUNDS ON THE CITIZENS’ IMAGE OF THE EUROPEAN UNION A Bayesian approach

Abstract

The Covid-19 pandemic put the economic and political stability of the European Union to a tremendous test. Only a decade after the start of the Euro Crisis, the EU had to face a new challenge of unprecedented proportions and a wave of discontent potentially threatening its legitimacy. In July 2021, the Member States reached a compromise on the €750 billion Next Generation EU (NGEU) package, which mainly benefitted the countries most affected by the pandemic. The political leaders agreed to finance fiscal transfers through joint debt and not to impose the same macroeconomic conditionality that characterised the financial bail-outs implemented during the Euro Crisis. This thesis focuses on the influence of NGEU funds on the Europeans’ image of the Union. By drawing on utilitarian arguments and their interaction with other determinants of public support, this study sheds light on the effect of the different levels of funding allocated to the Member States on the individuals’ attitudes towards the EU. Moreover, I will test if the effect of the funds was particularly positive for the individuals coming from countries that experienced EU-imposed austerity following the Euro Crisis.