18 January 2022
Anniek de Ruijter co-authored an article in Economic Policy on a survey that shows that there is substantial support among European citizens for a European Union (EU) budgetary assistance instrument to combat adverse temporary or permanent economic shocks hitting.
Support is broader when budgetary support is conditional on debt reduction in good times and on monies being spent in specific policy areas, in particular healthcare and education. Support also increases when there is a role for the European Commission in terms of monitoring and providing guidance. Furthermore, a program that constitutes long-run redistribution towards poorer countries is broadly accepted, and assistance through a progressive tax increase is more popular than through a flat tax increase. However, there is little support for policy packages that terminate a program and impose fines in the case of non-compliance.