IDEAS home Printed from https://ideas.repec.org/a/sae/eeupol/v20y2019i3p361-383.html
   My bibliography  Save this article

Eurozone bailouts and national democracy: Detachment or resilience?

Author

Listed:
  • Dominik Schraff

    (Center for Comparative and International Studies, ETH Zurich, Zurich, Switzerland)

  • Frank Schimmelfennig

Abstract

How did the Eurozone bailouts affect national democracies? Recent research indicates strong citizen detachment due to the external constraints imposed by bailout programs on national autonomy. This paper re-examines the detachment thesis by broadening the view toward multiple dimensions of democracy and effect heterogeneity across time and space. Using the generalized synthetic control method, we find a negative effect of bailouts on satisfaction with democracy and turnout but show that effects vanish after several years and vary strongly across bailout cases. In addition, we find resilient attitudes and behaviors in spite of national democratic institutions that continue to deteriorate. These findings indicate that economic policy outcomes have a stronger influence on satisfaction with democracy and electoral turnout than the quality of the democratic process.

Suggested Citation

  • Dominik Schraff & Frank Schimmelfennig, 2019. "Eurozone bailouts and national democracy: Detachment or resilience?," European Union Politics, , vol. 20(3), pages 361-383, September.
    • Handle: RePEc:sae:eeupol:v:20:y:2019:i:3:p:361-383
    DOI: 10.1177/1465116519848846
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1465116519848846
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1465116519848846?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Scharpf, Fritz W., 2011. "Monetary union, fiscal crisis and the preemption of democracy," MPIfG Discussion Paper 11/11, Max Planck Institute for the Study of Societies.
    2. Xu, Yiqing, 2017. "Generalized Synthetic Control Method: Causal Inference with Interactive Fixed Effects Models," Political Analysis, Cambridge University Press, vol. 25(1), pages 57-76, January.
    3. Anderson, Christopher J. & Guillory, Christine A., 1997. "Political Institutions and Satisfaction with Democracy: A Cross-National Analysis of Consensus and Majoritarian Systems," American Political Science Review, Cambridge University Press, vol. 91(1), pages 66-81, March.
    4. Friedrichsen, Jana & Zahn, Philipp, 2014. "Political support in hard times: Do people care about national welfare?," European Journal of Political Economy, Elsevier, vol. 35(C), pages 23-37.
    5. Thomas Lehner & Fabio Wasserfallen, 2019. "Political conflict in the reform of the Eurozone," European Union Politics, , vol. 20(1), pages 45-64, March.
    6. Jushan Bai, 2009. "Panel Data Models With Interactive Fixed Effects," Econometrica, Econometric Society, vol. 77(4), pages 1229-1279, July.
    7. Fritz W. Scharpf, 2011. "Monetary Union, Fiscal Crisis and the Preemption of Democracy," LEQS – LSE 'Europe in Question' Discussion Paper Series 36, European Institute, LSE.
    8. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    9. Chase Foster & Jeffry Frieden, 2017. "Crisis of trust: Socio-economic determinants of Europeans’ confidence in government," European Union Politics, , vol. 18(4), pages 511-535, December.
    10. Friedrichsen, J. & Zahn, P., 2011. "The Macroeconomy and Individuals’ Support for Democracy," Cambridge Working Papers in Economics 1104, Faculty of Economics, University of Cambridge.
    11. Duch,Raymond M. & Stevenson,Randolph T., 2008. "The Economic Vote," Cambridge Books, Cambridge University Press, number 9780521707404.
    12. Spyros Kosmidis, 2018. "International Constraints and Electoral Decisions: Does the Room to Maneuver Attenuate Economic Voting?," American Journal of Political Science, John Wiley & Sons, vol. 62(3), pages 519-534, July.
    13. Fritz W. Scharpf, 2011. "Monetary Union, Fiscal Crisis and the Preemption of Democracy," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 6, London School of Economics / European Institute.
    14. Duch,Raymond M. & Stevenson,Randolph T., 2008. "The Economic Vote," Cambridge Books, Cambridge University Press, number 9780521881029.
    15. Scharpf, Fritz W., 2011. "Monetary union, fiscal crisis and the preemption of democracy," LSE Research Online Documents on Economics 53448, London School of Economics and Political Science, LSE Library.
    16. Giandomenico Majone, 2014. "From Regulatory State to a Democratic Default," Journal of Common Market Studies, Wiley Blackwell, vol. 52(6), pages 1216-1223, November.
    17. Wagner, Alexander F. & Schneider, Friedrich & Halla, Martin, 2009. "The quality of institutions and satisfaction with democracy in Western Europe -- A panel analysis," European Journal of Political Economy, Elsevier, vol. 25(1), pages 30-41, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stuart J Turnbull-Dugarte, 2020. "Why vote when you cannot choose? EU intervention and political participation in times of constraint," European Union Politics, , vol. 21(3), pages 406-428, September.
    2. Laura Arnemann & Kai A Konrad & Niklas Potrafke, 2021. "Collective memories on the 2010 European debt crisis," European Union Politics, , vol. 22(4), pages 762-784, December.
    3. Dominik Schraff, 2020. "Is the Member States' Curse the EU's Blessing? Inequality and EU Regime Evaluation," Journal of Common Market Studies, Wiley Blackwell, vol. 58(5), pages 1215-1234, September.
    4. Federica Genovese & Gerald Schneider, 2020. "Smoke with fire: Financial crises and the demand for parliamentary oversight in the European Union," The Review of International Organizations, Springer, vol. 15(3), pages 633-665, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nikitas Konstantinidis & Konstantinos Matakos & Hande Mutlu-Eren, 2019. "“Take back control”? The effects of supranational integration on party-system polarization," The Review of International Organizations, Springer, vol. 14(2), pages 297-333, June.
    2. Federica Genovese & Gerald Schneider, 2020. "Smoke with fire: Financial crises and the demand for parliamentary oversight in the European Union," The Review of International Organizations, Springer, vol. 15(3), pages 633-665, July.
    3. Dermot Hodson, 2019. "The New Intergovernmentalism and the Euro Crisis: A Painful Case?," LEQS – LSE 'Europe in Question' Discussion Paper Series 145, European Institute, LSE.
    4. Cristina Fernández & Pilar García Perea, 2015. "The impact of the euro on euro area GDP per capita," Working Papers 1530, Banco de España.
    5. Reto Bürgisser & Donato Di Carlo, 2023. "Blessing or Curse? The Rise of Tourism‐Led Growth in Europe's Southern Periphery," Journal of Common Market Studies, Wiley Blackwell, vol. 61(1), pages 236-258, January.
    6. Marta Silva & João Carlos Lopes, 2020. "The structural adjustment of the Portuguese economy in the context of the economic reform of the Eurozone," Working Papers REM 2020/0143, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    7. V. Sidenko, 2017. "The crisis processes in the EU development: origins and prospects," Economy and Forecasting, Valeriy Heyets, issue 1, pages 7-30.
    8. Gebhard Kirchgässner, 2016. "Voting and Popularity," CREMA Working Paper Series 2016-08, Center for Research in Economics, Management and the Arts (CREMA).
    9. Sebastian Dellepiane & Niamh Hardiman & Jon Las Heras, 2013. "Building on easy money:The political economy of housing bubbles in Ireland and Spain," Working Papers 201318, Geary Institute, University College Dublin.
    10. Bulbarelli, Miriam, 2016. "The housing finance system in Italy and Spain: Why did a housing bubble develop in Spain - and not in Italy?," PIPE - Papers on International Political Economy 26/2016, Free University Berlin, Center for International Political Economy.
    11. Giandomenico Majone, 2014. "From Regulatory State to a Democratic Default," Journal of Common Market Studies, Wiley Blackwell, vol. 52(6), pages 1216-1223, November.
    12. Kristijan Kotarski & Luka Brkic, 2017. "Political Economy of Banking and Debt Crisis in the EU: Rising Financialization and its Ramifications," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(3), pages 430-455, September.
    13. Bodo Herzog, 2021. "Hidden Blemish in European Law: Judgements on Unconventional Monetary Programmes," Laws, MDPI, vol. 10(2), pages 1-13, March.
    14. Krahé, Max, 2023. "Understanding Italy's stagnation," Papers 277913, Dezernat Zukunft - Institute for Macrofinance, Berlin.
    15. Dorothee Bohle, 2017. "Mortgaging Europe’s periphery," LEQS – LSE 'Europe in Question' Discussion Paper Series 124, European Institute, LSE.
    16. Selim Jurgen Ergun & M. Fernanda Rivas & Máximo Rossi, 2019. "Satisfaction with democracy in Latin America: Do the characteristics of the political system matter?," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 83(9), pages 353-383, July.
    17. Lopes, Luís & Antunes, Margarida, 2016. "From budgetary instrument to the budgetary objective: The Portuguese case," IPE Working Papers 79/2016, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    18. Costas Lapavitsas & Sergi Cutillas, 2022. "National states, transnational institutions, and hegemony in the EU," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 429-448, April.
    19. Sebastian Dellepiane & Niamh Hardiman, 2012. "The New Politics of Austerity: Fiscal Responses to the Economic Crisis in Ireland and Spain," Working Papers 201207, Geary Institute, University College Dublin.
    20. Scharpf, Fritz W., 2018. "There is an alternative: A two-tier European currency community," MPIfG Discussion Paper 18/7, Max Planck Institute for the Study of Societies.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:eeupol:v:20:y:2019:i:3:p:361-383. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.