Understanding the EU’s Euro and Its Influence on Citizens: Insights from the Latest Eurobarometer Poll

Is the euro regrettable for EU citizens? Has the introduction of a single currency, such as the Spanish Peseta, really contributed to a more exclusive and niche sense of national identity? This article delves into these questions by analyzing the findings of the latest Eurobarometer poll, conducted by Ipsos on behalf of the European Commission Directorate-General for Economic and Financial Affairs (DG ECFIN) between October 25 and November 9, 2021. The poll surveyed 17,662 citizens aged 15 and over in 19 euro area countries, examining public sentiment towards the euro.

The Euro: Support and Sentiment

While support for the euro has slightly decreased since the previous wave—78% of respondents now believe the euro is a positive development for the EU, a drop of 2 percentage points compared to March 2021—over half (14%) still view the euro unfavorably. Furthermore, 5% are undecided. These results indicate that overall, the euro remains a widely appreciated feature of the EU, albeit with some erosion in support.

Critiques and Counterpoints: Losing Direct Control vs. Practical Benefits

Opposition to the euro often centers around the loss of direct control over national currency by national politicians, an argument frequently made by Brexiteers and other nationalists. However, many Europeans do not see this as a significant drawback. Instead, they are increasingly skeptical of national politicians and their financial decisions. When asked who they would prefer to handle their currency, many respondents would opt for an apolitical and faceless Brussels committee under EU oversight over figures like Boris Johnson.

Practical Advantages and Disadvantages

From a practical standpoint, the euro brings numerous benefits. It simplifies travel and trade within the EU, making it easier for citizens to navigate the single market. For instance, when the author (assuming an Irish perspective) transitioned from the Irish punt to the euro in 2002, the change was met with ease and convenience. However, retaining a national currency provides greater control over monetary policies, inflation, deflation, and interest rates.

On a global scale, however, a national currency like the euro might not carry as much influence as it once did. The rise of online banking and trading has made it simpler to hold multiple currencies and assets, such as USD, EUR, GBP, Bitcoin, and equities. Additionally, a stable currency often reflects a country's stability, which is why some nations peg their currency to the dollar to guarantee its least volatile status. The British pound (GBP) remains a frequently traded currency along with the dollar, euros, and Swiss francs.

Economic Policy and Public Sentiment

While some economic policy makers in EU countries may experience regrets due to the euro, the average citizen benefits from its practical conveniences. The euro has made many aspects of life easier for everyday citizens, from transactions to savings. Thus, while debates continue among policymakers and financial experts, the sentiment among the general public remains largely positive.

Overall, the introduction of the euro has transformed the financial landscape in the European Union, offering a balanced perspective on its impact. Whether the euro is a benefit or a drawback depends largely on one's perspective and the specific context in which it is evaluated.