THE INTERACTION OF CITIZEN’S TRUST BETWEEN THE EUROPEAN COMMISSION AND NATIONAL POLITICS DURING THE CRISIS

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Trust is considered a cornerstone in binding the society, the economy and the politics altogether. The rationale of trust takes into account the importance of both individual factors and social and institutional structures. However, since the onset of the crisis, net trust in institutions has generally declined. The literature has shown that economic and other macro-variables matter for trust in institutions along with individual characteristics. However, there is no systematic evidence on the impact of credit ratings and bailouts. Hence by employing a probit model and using the Eurobarometer survey from 2000 to 2014, this study focuses on rating episodes and bailouts while controlling for individual-level influences. Along with socio-demographic factors and economic conditions, rating episodes and bail-out plans are seen to reduce the tendency of people to trust.

Keywords: EU Commission, National Government, Financial Crisis, Trust, Survey, Probit Model

Authors’ individual contribution: the author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

JEL Classification: C25, G28

Received: 02.08.2019
Accepted: 24.09.2019
Published online: 07.10.2019

How to cite this paper: Kallandranis, C. (2019). The interaction of citizen’s trust between the European Commission and national politics during the crisis. Risk Governance and Control: Financial Markets & Institutions, 9(4), 8-19.
https://doi.org/10.22495/rgcv9i4p1