Flash EB No 187 – 2006 Innobarometer on Clusters
The Gallup Organization
Flash Eurobarometer
European
Commission
The eurozone, 5 years after
the introduction of the euro
coins and banknotes
Summary
Fieldwork: September 2006
Flash Eurobarometer 193 – The Gallup Organization
Report: November 2006
This survey was requested by the DG ECFIN-R-4: External Communication and
coordinated by Eurobarometer Team of the European Commission.
This document does not represent the point of view of the European Commission.
Report, page 1
The interpretations and opinions contained in it are solely those Analytical
of the authors.
Flash EB Series #193
The eurozone,
5 years after the
introduction of the
euro coins and banknotes
Conducted by
The Gallup Organization Hungary/Europe
upon the request of Directorate-General for
Economy and Finance (R-4, External
Communication)
Survey organised and managed by the
Eurobarometer Team of the European
Commission
This document does not represent the point of
view of the European Commission.
The interpretations and opinions contained in it
are solely those of the authors.
THE GALLUP ORGANIZATION
The Gallup Organization
Flash EB No 193 – The euro 5 years after
Table of contents
Table of contents ..................................................................................................................................... 3
Introduction ............................................................................................................................................. 4
Main findings .......................................................................................................................................... 5
1. Practical aspects of using the euro....................................................................................................... 6
2. Future expectations............................................................................................................................ 10
3. Using the euro outside the eurozone ................................................................................................. 12
4. Perceived consequences of the euro’s adoption ................................................................................ 13
5. The international role of the euro and European identity.................................................................. 15
6. Enlargement of the eurozone by the new Member States ................................................................. 17
7. Coordination of economic policies within the EU ............................................................................ 18
8. Public opinion and the Stability Pact ................................................................................................ 21
Executive Summary, page 3
Flash EB No 193 – The euro five years after
The Gallup Organization
Introduction
The euro is the official currency of the European Union Member States of Austria, Belgium, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain, also
known as the euro area. Slovenia is scheduled to join the eurozone in 2007. The euro is the single
currency of more than 300 million people in Europe. Especially since its launch in physical form (as
banknotes and coins), the euro has become a recognised international currency enjoying the kind of
stability and predictability favoured both by consumers and investors in the European Union and
elsewhere.
The European Commission repeatedly measures changes in citizens’ public perception in the 12
eurozone countries. The current report follows up on a series of earlier surveys first initiated in March
2000 (Flash EB 76) that has been continued at regular intervals ever since. The current study covers
the following aspects of citizens’ experience with their new money:
-
Practical aspects of the single currency
Future expectations
Use of the euro outside the euro zone
The euro and European identity
Opinions on the enlargement of the euro zone
Opinions on topical economic events and the Stability Pact
The survey’s fieldwork was carried out between the 4th and 8th of September 2006. Over 12 000
randomly selected citizens aged 15 years and over were interviewed across the eurozone. The survey
was carried out via telephone, with WebCATI (web-based computer aided telephone interviewing).
The key findings will be presented in detail in the Analytical Report; in these pages a brief summary
of the 2006 results will follow, focussing on major trends and key results.
page 4
The Gallup Organization
Flash EB No 193 – The euro 5 years after
Main findings
-
The euro is still not an “organic” currency for a large portion of its users. Five years after its
introduction, surprisingly many people still use their own old currency as mental benchmark
and a number of them still have difficulties using their new money. This survey found the
lowest rate of approval for the euro since its introduction. While in 2002, 59% of the
respondents in the eurozone thought that the new currency was overall advantageous for their
country, currently only less than half of respondents hold such a favourable opinion.
-
Still, a majority of citizens in the eurozone adjusted quite easily to the new currency– during
the first two years after its introduction. The rest of the population, however, still has
difficulties adapting to it. The main indices showing how embedded the euro is in the twelve
eurozone countries (how comfortable citizens are in handling the euro, and how often they use
the euro as a mental benchmark when calculating the prices of common and especially major
purchases) have shown a very slow rate of positive change since 2003.
-
The majority of eurozone citizens do not prefer to maintain the dual display of prices. While
there is some pressure to get rid of the smallest euro denominations, the majority are content
with the current denominations. Citizens are convinced that the removal of small
denominations would increase prices.
-
The main benefits stemming from the introduction of the euro are regarded to be cheaper and
easier travel (most Europeans take euro cash with them even if they travel outside the
eurozone); easier price comparisons; and a stronger position of Europe on the world stage. On
the other hand, citizens almost unanimously blame the euro for increasing price levels.
-
The euro has maintained its perceived status as an international currency, and we see an
increasing trend in this perception from 2003. In 2006, three quarters of citizens from the
eurozone perceive their currency to be an international currency comparable to the US dollar
and the Japanese yen. Most people do not care about the conversion rate, but still, the
majority are aware that the euro is worth more than the US dollar.
-
Most citizens in the euro area do not think that the euro has had any effect on their feelings of
being European. Among the minority who report such an effect, the dominant majority felt a
strengthened European identity due to the single currency. These perceptions did not change at
all from 2005.
-
The future enlargement of the eurozone to the 10 new Member States is an event expected by
most citizens in the eurozone. Two thirds approve the inclusion of the new Member States in
the euro area.
-
When evaluating their country’s economic situation in comparison to the economic situation
of other Member States, many of the respondents continue to believe that their country’s
economic situation is not as good as those of other countries that use the euro. The only
countries where citizens were confident enough to believe that their economy was better off
than the EU-12 average were Luxembourg, Ireland, and Austria.
-
Awareness of the Stability Pact is very low: many citizens report that they have not heard
about it, and even the majority of those who say that they have heard about it have no clear
idea about what it exactly is. Still, many people have an opinion on the Pact: it is generally
seen as successful in providing stability to the euro. Opinions vary as to how strictly the rules
of the Pact should be applied in difficult economic periods. Regarding the credibility and
enforcement of the rules pertaining to the Pact, citizens dominantly do not believe that
sanctions are imposed in the same manner to all Member States not respecting the Stability
Pact.
Executive Summary, page 5
Flash EB No 193 – The euro five years after
The Gallup Organization
1. Practical aspects of using the euro
Overall, it seems that citizens in the eurozone are adjusting more and more to having the euro as their
currency, as was already noted in previous years. Citizens are becoming more comfortable with
handling the euro, and are increasingly using the euro as a mental benchmark when calculating the
prices of common purchases.
Today, 59% of citizens in the euro zone indicate that the euro causes them no difficulty at all, up by 6
percentage points since 2005. However, almost five years after the replacement of the national
currency by the single currency, a significant number of respondents within the euro zone countries
(41%) still claim they have some difficulties with the euro. This is a drop of 6 points compared to
2005. Fifteen percent of respondents experience a lot of difficulty with the euro -- virtually unchanged
since 2003. Altogether, fewer difficulties are encountered than in previous years.
Ireland and Luxembourg boast the highest ratio of those who experience no difficulties at all with the
euro (81% and 77%, respectively). Italians, on the other hand, have the lowest ratio (45%) of those
who report no difficulty at all in using the euro. Accordingly, Italy is the only country where the ratio
of those experiencing difficulties with the euro outnumbers the ratio of those who say there are no
difficulties at all (56% vs. 45%).
Difficulty of distinguishing between and manipulating coins
% very + rather easy
% very + rather difficult
% neither easy nor difficult
9/2006
74
24
2
10/2005
73
25
2
11/2004
72
26
2
11/2003
71
0
10
20
30
3
26
40
50
60
70
80
90
100
Difficulty of distinguishing between and manipulating banknotes
% very + rather easy
% very + rather difficult
% neither easy nor difficult
9/2006
94
4 1
10/2005
93
5 2
11/2004
93
5 1
11/2003
92
6
0
Source:
FLASH EB 193
September 2006
GALLUP
page 6
10
20
30
40
50
60
70
80
90
2
100
Q4. When you pay cash, would you say that it is: very easy, rather easy, rather difficult or very difficult
to distinguish and to manipulate coins/ bank notes?
% EU12
Flash EB No 193 – The euro 5 years after
The Gallup Organization
The respondents are rather comfortable with using euro coins and banknotes. This is particularly true
for banknotes. While three quarters of citizens from EU12 countries find using euro coins easy (74%),
the ratio of those who are comfortable with using euro banknotes is 94%. There is a 1 percentage point
increase from 2005 in the perceived easiness of using both the euro coins and the banknotes.
However, one quarter of citizens consider it difficult to distinguish between and manipulate the euro
coins (1 percentage point decrease from 2005). In the case of euro banknotes, there are only 4% who
reported difficulties, showing, similarly, a 1 percentage point decrease from 2005. In 2006, Germany,
the Netherlands, and Austria had the highest number of respondents who thought that using the coins
of their new currency was difficult (37%, 31%, and 29%, respectively), while the lowest ratio of
citizens who considered using coins difficult were in Spain, Portugal and Finland (7%, 7%, and 9%,
respectively). The ratio of those who consider using euro banknotes difficult is rather low across the
zone. Still, in some countries people are somewhat more likely to say it is difficult, particularly in
Ireland (9%), Spain, and the Netherlands (6-6%).
The euro seems to have reached a “mental plateau” in the extent to which people use it as a benchmark
for small purchases. It is also slowly becoming the benchmark currency for significant purchases.
Major purchases are still dominantly calculated in former national currencies (40%), while the
majority (57%) already calculate common purchases in euros. For exceptional purchases, people
increasingly count in euro (+5 percentage points) and are less likely to calculate in national currencies
(-3) compared to 2005. Using the euro as a benchmark for daily purchases is as widespread as it was in
2005, showing only a nominal (+1 point) change.
The euro as mental benchmark for:
... exceptional purchases
Most often in euro
9/2006
A often in euro as in [NAT. CURRENCY]
29
10/2005
29
24
11/2004
0
10
43
31
16
49
27
20
30
DK/NA
40
31
19
11/2003
Most often in [NATIONAL CURRENCY]
54
40
50
60
70
80
90
100
... small purchases
9/2006
57
21
22
10/2005
56
22
21
11/2004
52
11/2003
22
46
0
Source:
FLASH EB 193
September 2006
GALLUP
10
20
25
24
30
40
50
60
30
70
80
90
100
Q2. Today, when purchasing, do you count mentally: most often in euro, most often in [NATIONAL
CURRENCY], or as often in euro as in [NATIONAL CURRENCY] when it concerns ...
% EU12
Executive Summary, page 7
Flash EB No 193 – The euro five years after
The Gallup Organization
The Irish had the highest ratio of respondents claiming that they are using the euro to calculate even
when making exceptional purchases (88%), while the proportion of respondents doing so is lowest in
Belgium (18%). National currencies are used for calculations in major purchases most often by
Belgians (65%), by the Dutch (57%), and by Austrians (55%).
As we have seen, daily purchases are calculated mostly in euro in the EU12 countries, and to the
highest extent in Ireland (91%). But there are three countries where still only about a half, or an even
lower proportion of citizens use the euro as a mental benchmark in the grocery store and the like: in
Portugal (43%), in Germany (49%) and in Italy (50%). These small-item purchases are calculated in
the previous national currency most often by the Dutch (31%) and Germans (30%).
Looking at purchasing patterns, it seems that the euro is still affecting consumer habits in the
eurozone, but to a lesser extent. Today, the majority of citizens report that the new currency does not
affect their purchasing patterns. Still, a third of them report buying less because of a fear of spending
too much. Fewer citizens told Eurobarometer that they buy more because of the difficulty of
calculating how much they have spent (25%). We also have to emphasize that citizens are reporting in
numbers lower than ever before that they are buying less because of a fear of spending too much (-6
percentage point decrease from 2005).
Reported change of consumer behaviour due to the introduction of euro
9/2006
1 0/2005
11 /2004
1 1 /2003
33
Y ou buy less as y ou fear
spending too much
39
36
38
25
26
Y ou buy more as y ou hav e
difficulty realising how
much y ou are spending
30
29
41
(Neither one or the other:
no difference)
(DK/NA)
Source:
FLASH EB 193
September 2006
GALLUP
34
32
31
1
1
1
1
Q7. For five years now all payments have been made in euro, some people buy more as they don’t realise how much
they are spending; on the other hand others buy less as they fear spending too much. Which of these two attitudes is
closer to yours?
% EU12
Those from Germany (40%) and Italy (40%) report being overly cautious due to persisting mental
difficulties in using the euro, while overspending is most characteristic of citizens in Ireland (44%).
Lack of knowledge characterizes citizens in the euro zone in questions of (non-existing) fees for ATM
withdrawals, purchases in another country of the eurozone, and bank transfers between eurozone
countries.
The majority of citizens in the EU12 countries cannot answer questions about banking fees. More
than half of eurozone citizens do not know if they pay supplementary fees when using a bank card to
withdraw money in another eurozone country (51%), or when making a purchase with their bank card
in another eurozone country (53%), and 59% have no idea if there are supplementary fees for making
a bank transfer to another eurozone country.
A very small minority across the zone are aware that such fees do not exist. Even among those who
venture to give an opinion, about half or more say that there are fees connected to such cross-border
transactions within the eurozone. There is no change compared to 2005 or to earlier years in this
respect.
page 8
Flash EB No 193 – The euro 5 years after
The Gallup Organization
Respondents are more likely than not to think that it costs them more to withdraw money in another
country of the eurozone: in 2006, 27% thought there was a supplementary fee, while 23% answered
that there was no extra charge in such case. The proportions are similar to previous years; however,
this survey found that significantly more citizens are admitting that they are not aware of the details.
When we asked about extra charges when buying in another country using a bank card, more citizens
answered correctly (27%) than incorrectly (21%); similarly to the results in the previous years.
The lowest proportion of correct answers were given in response to the question of whether or not
citizens have to pay supplementary fees when making a bank transfer to another country of the euro
zone: only 16% of citizens are aware that they don’t have to pay an extra fee for such a transaction.
Are there extra fees
... when withdrawing money in another country of the eurozone
Yes (incorrect answer)
9/2006
51
30
34
11/2004
36
27
37
11/2003
DK/NA
23
27
10/2005
No (correct answer)
37
29
31
40
... when purchasing with bank card elsewhere in the eurozone
9/2006
53
27
21
10/2005
11/2004
35
38
27
11/2003
35
35
30
39
39
22
... for bank transfers within the eurozone
9/2006
10/2005
59
16
25
0
Source:
FLASH EB 193
September 2006
GALLUP
10
39
23
38
20
30
40
50
60
70
80
90
100
Q10. Compared to a similar operation done in [COUNTRY], in your opinion, do you pay supplementary fees…?
a) When you use your bank card to withdraw money in another country of the eurozone
b) When you use your bank card to make a purchase in another country of the eurozone
c) When you make a banking transfer to another country of the eurozone
% EU12
Executive Summary, page 9
Flash EB No 193 – The euro five years after
The Gallup Organization
2. Future expectations
In the second chapter we present the perception of citizens of the eurozone on some policies related to
the changeover to and practical use of the euro, including the dual price displays in shops,
denominations of the euro coins, and the possible consequences of the removal of small euro coins.
The summary results show that the majority in the eurozone do not think it is necessary to continue
with dual pricing, citizens are satisfied with the current selection of euro coins, and they are inclined to
believe that the removal of the smallest denominations would increase prices.
To make sure that Eurobarometer measures this aspect reliably, two different questions were asked
about dual pricing to a random half of the national samples. One version asked whether the
respondents would like the shopkeepers to continue with displaying prices in the old currency as well,
while the alternative question inquired if people find it useful to have dual price displays. Regardless
of the question, a clear majority do not wish to maintain the dual pricing system: 58% versus 39%
when asked in a general way, and 60% versus 38% when the question targeted utility more directly.
The support for dual displays decreased somewhat over the past year, but the changes are not
dramatic, as is shown in the graph below.
Dual pricing is something people like
No
Yes
DK/NA
58
9/2006
10/2005
54
39
44
3
2
Dual pricing is useful for them
9/2006
10/2005
Source:
FLASH EB 193
September 2006
GALLUP
60
58
38
40
2
2
Q3. It’s five years /2006/ since all purchases have been made in euro and no longer in [NATIONAL CURRENCY].
a) Would you like shopkeepers to continue dual price displays?
SPLIT BALLOT A
b) Would you say that it is useful for you that shopkeepers extend dual price displays?
SPLIT BALLOT B
% EU12
In all but two countries the majority of citizens do not wish the dual pricing system to be maintained.
This is especially true in the Netherlands (84-84% answered “no” on both questions) and Luxemburg
(74% answered “no” on the first and 76% answered “no” on the second question). When asked in a
more general way, a high percentage of Finnish mentioned that they wouldn’t like the shopkeepers to
continue the dual displays (78%). When asked from the personal utility perspective, a high number of
Austrians (82%) are also against continuing dual displays.
The two exceptions are France and Spain, where more than half of citizens are for dual price displays,
both when asked from a general (55%, 50%) and from a personal perspective (55%, 54%).
page 10
Flash EB No 193 – The euro 5 years after
The Gallup Organization
Many more people have difficulties with the euro coins than with the banknotes, and a potential way
of simplifying citizens’ lifes would be to get rid of the smallest cent denominations. Eurobarometer
asked the opinion of citizens living in the eurozone on this matter. Similarly to the 2005 results, the
selection of the euro coins was once again considered to be adequate. 58% of citizens from the
eurozone consider the variety of coins to be sufficient—this is the same proportion as in 2005. A
significant minority, 36%, wish to have fewer coins. (Exactly the same proportion as in 2005). A
negligible number of respondents would like to have the selection of the euro coins widened (4%, one
percentage point less than in 2005).
Against the general trend, there are
four countries where the majority
believes that there are too many
coins with different values: Italy
(64%), Belgium (61%), Luxemburg
(59%) and Ireland (52%).
Current selection of the euro coins
9/2006
10/2005
11/2004
58
58
Just the right number
53
56
36
36
Too many
Almost a third of all eurozone
citizens would prefer to get rid of
the 1 cent (32%) and the 2 cent
(30%) denominations, and another
11% think that 5 cent coins are
unnecessary, too.
40
38
4
4
5
4
Not enough
(DK/NA)
11/2003
2
2
2
2
Citizens from EU12 countries
continue to fear an increase in
GALLUP
prices should small coins be
removed: almost two thirds of
citizens from the eurozone continue to hold this view (64%, +2). Only a minority believe that the
suppression of small euro coins would have no effect on prices (27%, -4), and hardly anybody
anticipates that such a change could positively affect (i.e. lower) price levels (2%).
Source:
FLASH EB 193
September 2006
Q5. Having used euro coins for five years, do you consider that
there are too many or, on the contrary, not enough coins with
different values or do you consider that there are just the right
number?
% EU12
Belgium (79%, +5) is the country with the highest share of respondents fearing a rise in prices as a
consequence of the removal of small euro denominations, followed by France (78%, +1) and
Luxembourg (76%, +6).
This ranking corresponds to the
results of the previous years,
these countries having been the
most sceptical in this respect.
Similarly to earlier results, the
Dutch are the least worried
about price increases caused by
the possible elimination of some
small euro coins.
The consequences of the supression of small coins
9/2006
10/2005
11/2004
64
62
Would raise prices
65
2
Would lower prices
3
2
27
Would not have any effect
on prices
31
28
7
(DK/NA)
4
5
Source:
FLASH EB 193
September 2006
GALLUP
Q8. Do you believe that the suppression of small euro coins (such
as the 1 and 2 cent coins)…
% EU12
Executive Summary, page 11
Flash EB No 193 – The euro five years after
The Gallup Organization
3. Using the euro outside the eurozone
This chapter evaluates the use of the euro when citizens are travelling outside the eurozone, by
measuring to what extent the euro is used as a travel currency by respondents. Eurobarometer found
no change from previous years’ results; the euro continues to be the most prominent currency to carry
when travelling outside the eurozone.
Around one fifth of citizens travelled to a country outside the eurozone: 19% in 2006, 22-22% in 2005
and 2004 and 20% in 2003.
Respondents who indicated that they had travelled outside the euro area in the past year were asked to
indicate the main currency they took with them on the trip. The euro continues to be the most
commonly used currency in 2006, too. Again, slightly more than half of travellers took it outside the
eurozone (53%).
The dollar was mentioned by 16% of citizens, while other currencies (presumably those of the
destination country) were mentioned by 29% in 2006. The results show great stability over the years.
Using the euro outside the euro zone
9/2006
1 0/2005
16
16
15
17
Dollars
29
27
30
29
Another currency
Source:
FLASH EB 193
September 2006
GALLUP
1 1 /2003
53
55
54
52
Euros
[DK/NA]
1 1/2004
2
2
1
2
Q13. During your trip or trips to a country outside the euro zone, what was the main currency that you took
with you?
Base: those who went to a country outside the euro zone
% EU12
The Finnish (38%), the Austrians (45%) and the Dutch (45%) are the least likely to rely on the euro
when travelling outside the eurozone. Citizens of Greece care the least to carry along foreign money
when leaving the eurozone (72% opt for euro). The dollar is favoured as an alternative most by the
Irish (29%), and local currencies are favoured most by Finns (46%) and Austrians (45%).
As was stated in 2005, the continuing popularity of the euro as a travel currency could be explained by
its stable international status but also partly by the ease of using the euro in several countries. Besides,
there are some new Member State countries where the euro is already accepted for purchases (in
Slovenia, Estonia, etc.). The variations across the zone in using the euro in non-eurozone countries
might also be connected to the destinations citizens are travelling to.
page 12
Flash EB No 193 – The euro 5 years after
The Gallup Organization
4. Perceived consequences of the euro’s adoption
The adoption of the euro is generally perceived to be advantageous in 2006, although we see a
decreasing trend since 2002. In 2006, 48% of citizens consider the adoption of the euro to be
advantageous overall (-3 percentage points), and only 38% think it is disadvantageous (-1 percentage
point).
Advantageous
overall
Disadvantageous
overall
No change
DK/NA
September 2002
59%
29%
8%
4%
November 2002
54%
32%
7%
7%
November 2003
52%
36%
5%
7%
November 2004
53%
36%
5%
6%
October 2005
51%
39%
6%
5%
September 2006
48%
38%
7%
7%
Looking at individual country reports, the highest percentage of respondents thinking that the adoption
of the euro is overall advantageous can be found in Ireland (75%, +3 points), Finland (65%, -2
percentage points) and Luxemburg (64%, -13 percentage points). However, Luxemburg and Belgium
show a significant decrease from last year in the ratio of those who consider it advantageous overall (13% and -10 percentage points, respectively). Italy (48%), Greece (46%), Germany (44%) and the
Netherlands (43%) have the highest ratio of respondents who consider the introduction of the euro
overall disadvantageous.
Respondents who perceived the introduction of the euro to be advantageous saw three main benefits
stemming from the introduction of the euro: easier and cheaper travel (46%, +5); easier price
comparisons (30%, +3); and the reinforced status of Europe in the world (27%, +4). These three
concerns were also the most important in 2005, but all show some increase in 2006. In fourth place,
every tenth citizen emphasized more stable prices (11%, +2). Sounder public finances, lower interest
rates, and improvements in economic growth and employment are not really considered to be
important advantages of introducing the euro.
Eurozone advantages
9/2006
10/2005
Travels abroad less costly, easier to travel
39
Easier to compare prices
Reinforce the place of Europe in the world
23
More stable prices
Sounder public finances
Improve growth, employment
Lower interests rates, less debts charges
9
Source:
FLASH EB 193
September 2006
GALLUP
30
11
5
4
5
4
4
4
19
Other
(DK/NA)
27
27
46
32
9
9
Q14b. In your opinion, what are the main advantages of the adoption of the euro for [COUNTRY]?
Base: those who believe that joining the eurozone was „advantegous overall” for their country
% EU12
Executive Summary, page 13
Flash EB No 193 – The euro five years after
The Gallup Organization
Citizens, who regard the euro adoption as disadvantageous, almost unanimously identify the increase
in prices (81%, +3 percentage points) as the main problem. A view far less prevalent but still
mentioned by nearly a fifth of citizens is that the introduction of the euro complicates everyday life
(19%, +7 percentage points). Seven percent (unchanged from 2005) think that the euro is a cause for
increased unemployment and decreased economic growth. Other disadvantages of the euro’s
introduction are the loss of sovereignty, the loss of competitiveness, low interest rates or the rigidity of
public finances, and are mentioned by less than 5%.
Eurozone disadvantages
9/2006
10/2005
Prices increase
78
Complicates everyday life
7
7
5
5
5
Loss of sovereignty
Loss of competitiveness
Too rigid for public spending
7
3
2
2
3
15
Other
(DK/NA)
Source:
FLASH EB 193
September 2006
GALLUP
19
12
More unemployment, less growth
Generates too low interest rates
81
7
18
8
Q14b. In your opinion, what are the main disadvantages of the adoption of the euro for [COUNTRY]?
Base: those who believe that joining the eurozone was „disadvantegous overall” for their country
% EU12
We also asked the citizens from the eurozone about the euro’s effects on price developments and price
harmonization. Respondents widely agreed that the euro has had a negative effect on prices. Nearly
all citizens (93%) stated that the euro has added to the increase of prices (this view has not changed
from 2005). Another 5% of citizens say that the euro has had no impact on prices, and only 1% say
that the euro has limited the increase of prices (both are unchanged from 2005). An overwhelming
majority in each country of the eurozone share this view.
A majority of citizens say they do not
believe that the introduction of the euro
reduced price differences between
countries in the eurozone (45%). This ratio
however is significantly lower than in
2005 (53%). Whereas the proportion of
respondents believing that the euro
reduced price differences is almost
unchanged (32% in 2006, 31% in 2005),
the ratio of those who cannot answer the
question increased (23%, up from 16% in
2005).
Similarly to 2005 research results,
Germany had the highest number of
respondents doubting that the euro reduced
price differences (53%, -7 percentage
points), followed by Luxemburg (51%, -3
percentage points), Greece (51%, -1
percentage point) and France (50%, -9
percentage points).
page 14
Effect of euro on price stability
The euro has had no
impact on prices; 5
DK/NA; 1
Limited the increase
of prices; 1
Added to the
increase of prices; 93
Source:
FLASH EB 193
September 2006
GALLUP
2006: Q9. Concerning the evolution of prices for the last
five years, would you say that the euro has…?
% EU12
Flash EB No 193 – The euro 5 years after
The Gallup Organization
5. The international role of the euro and European identity
The euro maintains its perceived status as an international currency, and in this we can see a slightly
increasing tendency from 2003. In 2006, three quarters of eurozone citizens saw their currency as an
international currency comparable to the US dollar or the Japanese yen (74%, +1).
Compared to 2005 (or previous years), significantly fewer respondents disagree with this (18%, down
from 23% in 2005).
The euro as international currency
9/2006
10/2005
11/2004
The highest ratio of those who recognize
the international status of the euro can be
found in Spain (84%, +2), Luxemburg
(83%, -2) and Greece (83%, no change).
The highest numbers of respondents who
think that the euro does not have an
international status are in Germany
(23%, -6) France (21%, -6) and Ireland
(19%, -8).
11/2003
74
73
Yes
72
68
18
23
No
23
25
8
(DK/NA)
4
5
7
Source:
FLASH EB 193
September 2006
GALLUP
Q11. After five / 2006/ years of using the euro, do you believe
yes or no that the euro:…
a) Has become an international currency like the dollar or
the yen
% EU12
In 2006, respondents are less concerned
about the euro/dollar exchange rate.
The ratio of citizens claiming that they
are not at all concerned about the
exchange rate has shown an increasing
trend since 2002.
In 2006, almost two thirds of citizens in the eurozone are “not concerned” about the euro-dollar
conversion rate (61%). This figure is 6 percentage points higher than in 2005. One third of
respondents are concerned “a lot” or “a little” (32%, -10 points less than in 2005).
Concerned about eurodollar exchange rate
A lot / a little
Not at all
01/2002
49%
47%
03/2002
49%
46%
05/2002
46%
49%
09/2002
45%
49%
11/2002
42%
52%
11/2003
39%
54%
11/2004
44%
51%
10/2005
42%
55%
09/2006
32%
61%
Citizens are most concerned about the exchange rate in Ireland (54%, +8), Spain (47%, -7) and Greece
(41%, -5). The largest numbers of those not feeling concerned at all reside in the Netherlands (75%,
+5), Germany (74%, +12) and Belgium (72%, +14).
The level of awareness of the euro/dollar exchange rate remains stable; we found no significant
changes from 2005 in any of the answer categories. Almost half of respondents (48%, -1) in the 12
eurozone countries correctly indicated that one euro was worth more than one dollar. But the share of
Executive Summary, page 15
Flash EB No 193 – The euro five years after
The Gallup Organization
incorrect answers is also strikingly high: 21% believe that the dollar is stronger than the euro and 17%
think that one euro is equivalent in value to one dollar (-1). Another 14% cannot answer the question
(+5 percentage points).
In every country polled, correct responses outnumbered incorrect ones. Respondents with the highest
level of awareness are found in Austria, Luxemburg and the Netherlands (all 57%).
Value of the euro against the US dollar
9/2006
10/2005
11/2004
11/2003
48
49
48
one euro is worth more than
one dollar
35
21
one euro is worth less than one
dollar
23
21
25
17
18
one euro has an equivalent
value to one dollar
21
28
14
9
(DK/NA)
10
12
Source:
FLASH EB 193
September 2006
Q18. From what you know, would you say that today one euro is worth more, less or is equivalent to one dollar:..?
% EU12
GALLUP
Most citizens (78%) in the euro area do not consider the euro to have any effect (either positive or
negative) on their feeling of being European. This figure has not changed at all since in the past three
years. Almost a fifth of respondents (19%) feel a little more European since the introduction of the
common currency (+1), and only a tiny share (2%) claim that the euro makes them feel a little less
European (-1).
The euro’s reported impact on European identity
9/2006
10/2005
19
18
19
17
A little more European
(DK/NA)
Source:
FLASH EB 193
September 2006
GALLUP
page 16
11/2003
78
78
78
80
Nothing has changed
A little less European
11/2004
2
3
3
2
1
1
1
1
Q17. Since using the euro, do you personally feel a little more European than before, a little less European than before
or would you say that your feeling of being European has not changed?
% EU12
Flash EB No 193 – The euro 5 years after
The Gallup Organization
6. Enlargement of the eurozone by the new Member States
The future enlargement of the eurozone to include the 10 new Member States is an event expected by
most citizens of the current euro countries. Almost three quarters in the eurozone believe that there is
a chance of extending the euro to the new Member States which entered the European Union in 2004
(73%). However, this figure is somewhat lower than it was in 2005 (78%). 12% of the citizens tend
not to believe this extension will take place (-1).
The extension of the euro zone to the new Member States
9/2006
10/2005
11/2004
26
25
Yes, certainly
30
47
53
Yes, probably
49
10
10
10
No, probably not
2
No, certainly not
3
3
15
10
(DK/NA)
9
Source:
FLASH EB 193
September 2006
GALLUP
Q15. Would you say that the extension of the euro to the 10 new member states, which entered
the European Union in May 2004 is something that will happen:
% EU12
Respondents were also asked if they are in favour of or against introducing the euro in the new
Member States. Since we asked this question slightly differently in previous years,, the results cannot
be directly compared. We still present the attitudes regarding the euro extension to new Member
States from previous years on the same chart, while indicating the different wording of the question.
In 2006, as well as in previous years, a majority of eurozone citizens held a positive view of extending
the euro to new Member States. In 2006, the support for the extension was more than three times the
opposition against the extension of the euro in the NMS10 (66% versus 21%).
Citizens’ opinion on the extension of the euro to the new Member States
in favour of introducing the euro in the other EU countries
against introducing the euro in the other EU countries
DK/NA
9/2006
66
21
13
Q16. Are you…
% EU12
The euro zone should be enlarged to the new member states of the European Union because it would have a
positive effect on consumers who would be able to compare prices between countries more easily
The euro zone should not be extended to the new member states because this could weaken the euro zone
DK/NA
10/2005
11/2004
Source:
FLASH EB 193
September 2006
59
62
33
30
8
9
Q16. To which of the following statement do you feel the closest?
% EU12
GALLUP
Executive Summary, page 17
Flash EB No 193 – The euro five years after
The Gallup Organization
Looking at individual country data, Irish (79%), Spanish (75%) and Portuguese (73%) citizens are
most in favour of extending the euro in the NMS10, while German (61%), French (61%) and Finnish
(61%) citizens were the least in favour of it.
7. Coordination of economic policies within the EU
About half of respondents believe (correctly) that coordination of economic policies takes place within
the EU. At the same time, a fairly large percentage (40%) thinks that economic policy coordination
does not receive enough importance in the EU. Citizens in the 12 eurozone countries see their
countries’ economic situation in more positive terms than they did a year ago. Fewer citizens than last
year state that their countries had a budget deficit in the previous year.
Half of the citizens from the eurozone are aware that a coordination of economic policies across
Member States takes place (51%). The ratio of incorrect answers has decreased from 28% in 2005
to 21% in 2006, but continuing the trend from previous years, the ratio of those who did not or could
not answer this question increased (from 20% in 2005 to 28% in 2006).
Similarly to 2005’s results, the highest level of awareness on this issue is found in Austria (63%, +1),
Germany (58%, -4), Luxemburg (54%, -7) and Belgium (54%, -4). At the other end, the Portuguese
(40%, -3), the Greek (41%, -2) and the Irish (43%, -2) have the lowest proportion of respondents who
are aware of the coordination of economic policies at the EU level.
Awareness of economic policiy coordination within the EU
Y es
9/2006
10/2005
11/2004
Source:
FLASH EB 193
September 2006
GALLUP
No
DK/NA
21
51
53
56
28
28
26
20
18
Q20. Is there a coordination of the economic policies within the Member States of the European Union:
% EU12
Regarding the evaluation of the coordination of economic policies, the largest group of respondents
in the eurozone were those who felt that the coordination between the economic policies of the
Member States does not receive enough attention (40%). Compared to 2005, this figure has decreased
by 6 percentage points.
The ratio of citizens who thought that this coordination was just right (20%, -3) or too important (13%,
-1) did not change significantly from 2005. The proportion of those who did not answer this question
increased by 10 percentage points, from 18% in 2005 to 28% in 2006.
page 18
Flash EB No 193 – The euro 5 years after
The Gallup Organization
Evaluation of the economic policies’ coordination
Not important enough
9/2006
40
Just right
T oo important
20
13
10/2005
46
23
11/2004
45
23
Source:
FLASH EB 193
September 2006
(DK/ NA)
28
14
16
18
16
Q21. Today, would you say that coordination between the economic policies of the member states is:
% EU12
GALLUP
Looking at the “not important enough” answers, results for individual countries show the same
differences between countries that were mentioned in 2005. While in France (49%, -4), Germany
(45%, -11) and Italy (42%, -8) more than four out of ten citizens think that there is not enough
economic policy coordination between the Member States, less than two out of ten citizens think so in
Portugal (14%, no change) and Finland (19%, -3). The same three countries lead, and the same two
countries end this ranking as in 2005, but with higher percentages.
We also asked respondents to evaluate their country’s economic situation, comparing it to the
economies of other Member States. Many respondents from the eurozone still continue to believe that
their country’s economic situation is not as good as those of other EU countries.
The largest group of citizens from the eurozone are those who say that the economic situation in their
country is inferior to the economic situations of other Member States (44%), but this figure is lower
than it was in 2005 (-5). The ratio of those who don’t see any difference between their own country’s
and other Member States’ economic situations (23%) is unchanged, while the ratio of those who
evaluate their country’s economy more positively has increased somewhat from last year (26%, +3).
Executive Summary, page 19
Flash EB No 193 – The euro five years after
The Gallup Organization
Economic situation in country compared to eurozone average
9/2006
10/2005
11/2004
11/2003
44
49
49
48
Not as good
23
23
24
Identical
26
26
23
22
Better
18
7
(DK/NA)
5
5
8
Source:
FLASH EB 193
September 2006
Q22. And if you compare the economic situation of [COUNTRY] with that of other countries of the European Union,
would you say that it is … ?
% EU12
GALLUP
Looking at individual countries on the issue of their country’s comparative economic situation, we
obviously see a wide variation between Member States. There are only three countries where a large
majority agree that their country’s economic situation is better than the economies of other Member
States; namely Luxemburg (79%, no change from 2004), Ireland (75%, +13), and Austria (67%, +5).
However, in almost all countries, the ratio of those who believe that their economy is doing
comparatively better increased from last year. Greece and Italy were the only countries where this
ratio decreased (but even here only by 1%).
At the other end, and similarly to previous years’ results, Portugal (85%, -1) and Greece (81%, +3) top
the ranking for the highest share of respondents who see their country’s economic situation as worse
than those of the other Member States.
Finally, countries with the highest rate of respondents who saw their country’s situation as similar to
eurozone average were Finland, (35%, -3), France (30%, -1) and Belgium (29%, -3).
We also asked respondents to evaluate public finances. Similarly to previous research results, a
significant majority, two thirds of the respondents, thought that their country’s budget was in deficit in
the year 2005 (66%). This figure is lower than in the previous years. One in ten citizens from the
eurozone thought that their state revenues and spending were balanced (10%, -1), and 9% of them said
that their state had a budget surplus, meaning that it earned more money than it spent (+2 percentage
points increase from 2005).
page 20
Flash EB No 193 – The euro 5 years after
The Gallup Organization
Perception of budget balance in eurozone countries
9/2006
10/2005
11/2004
11/2003
66
... had a budget deficit, meaning
that it spent more money than it
earned
74
71
68
10
11
11
12
... revenues and spendings are
balanced
... had a budget surplus, meaning
that it earned more money than
it spent
9
7
8
8
15
(DK/NA)
8
9
11
Source:
FLASH EB 193
September 2006
GALLUP
Q23. Each year, the [NATIONALITY] State uses its revenues to finance public spending, meaning everything that is
paid by the State. From what you know, would you say that in 2005, the [NATIONALITY] State had a budget surplus, a
budget deficit or one way or another, revenues and spending balanced?
% EU12
When analysing individual country data, Germany (87%, -6), France (75%, -6), Italy (69%, -4) and
Austria (69%, -7) ranked highest in the share of respondents claiming that their state had a budget
deficit. However, all had a lower ratio than in 2005. Overall, all but one country showed an increase
in the ratio of respondents who believe that their state budget deficit is decreasing. This exception was
Luxemburg, where this ratio increases continuously (2003: 25%, 2004: 34%, 2005: 38% and 2006:
43%).
In a few countries, citizens believed that their economy had a budget surplus in 2005. Of these,
Ireland stood out clearly with 62% of citizens believing that their country had a budget surplus. (This
is similar to results in previous years; 48% in 2004 and 59% in 2005). The Finnish followed the Irish
but only from a distance: 36% of citizens had the same opinion (up from 23% in 2005).
In 2006, Belgians had the highest ratio of those who believed that their state’s revenues and spending
were balanced (30%, +3 from 2005). In 2005, the Spanish led this category with 28%.
8. Public opinion and the Stability Pact
Familiarity with the European Stability and Growth Pact decreased somewhat, but the number of
citizens who mentioned that they know about it was still higher than the number of those who said that
they did not (50% versus 46%).
Overall, the Pact is seen as a good thing; opinions vary about how strictly the rules of the Pact should
be applied in difficult economic periods, and as to whether sanctions are imposed in the same manner
to all Member States that do not respect the Stability Pact. It seems that citizens are more inclined in
2006 to believe that Member States respect the Stability Pact rules.
Eurozone citizens’ level of awareness of the existence of the Stability Pact decreased somewhat from
last year. Half of respondents (50%) state that they have heard about it; 46% indicate that they have
never come across the issue. The level of awareness decreased by 5 percentage points from 2005. Of
the half of respondents who do know about the Stability Pact, 18% mentioned that they also know
what it is about (-1). The greatest difference from last year was in the number of respondents who
knew about the Pact but didn’t know exactly what it was about (32%, down from 36% in 2005).
Executive Summary, page 21
Flash EB No 193 – The euro five years after
The Gallup Organization
Although half of eurozone citizens are familiar with the concept of the Stability Pact, a substantial
number of citizens have not heard about it.
Awareness of the Stability Pact
9/2006
10/2005
11/2004
11/2003
46
45
45
No, you have not heard about it
49
32
36
36
35
Yes, but you do not know very
well what it’s about
18
19
19
Yes, and you know what it’s
about
16
4
(DK/NA)
Source:
FLASH EB 193
September 2006
GALLUP
0
0
0
Q24. Personally, have you ever heard of the “Stability and Growth Pact”, which is often called the “Stability Pact”?
% EU12
The countries where the ratio of those who know about the Stability Pact outnumbers the ratio of those
who do not are Luxemburg (50% versus 45%), Austria (62% versus 33%), Germany (69% versus
30%) and Portugal (56% versus 28%).
Citizens remain divided on the strict enforcement of the rules laid out in the Stability Pact
regarding public deficit and debts. 43% disagree with the statement that “in difficult economic
periods, a country should be free not to respect the limits set by the Stability Pact” while 40% agree
with it. Both types of answers are chosen by fewer respondents than one year ago when 47%
disagreed and 43% agreed with strict enforcement of the Pact.
There are only five countries out of 12 where more citizens disagree with this statement than agree
with it. These countries are Belgium (45% versus 33%), Italy (42% versus 30%), Luxemburg (42%
versus 33%), Germany (49% versus 45%) and France (47% versus 43%).
Enforcement of the Stability Pact
9/2006
10/2005
11/2004
11/2003
43
47
Total "Disagree"
49
47
40
43
Total "Agree"
43
42
17
(DK/NA)
9
8
11
Source:
FLASH EB 193
September 2006
GALLUP
page 22
Q25. During the introduction of the Euro, Member States of the European Union signed a « Stability Pact » by which everyone
committed to limiting their budget deficit. Can you tell me if you agree or disagree with each of the following opinions … ?
a) In difficult economic periods, a country should be free not to respect the limits set by the « Stability Pact » in terms of public
deficit and debt
% EU12
Flash EB No 193 – The euro 5 years after
The Gallup Organization
The overwhelming majority of citizens from the euro zone (69%) assess the Stability Pact to be a good
thing, because they believe that it has made the euro a stable and strong currency (this ratio shows a
slight, 3 percentage point decrease from 2005). 14% of respondents disagree with this opinion (this
ratio has also decreased by 4 percentage points from 2005).
Favour the Stability Pact because it guarantees strong and stable euro
9/2006
10/2005
11/2004
11/2003
14
18
Total "Disagree"
17
18
69
72
Total "Agree"
75
71
17
9
(DK/NA)
8
11
Source:
FLASH EB 193
September 2006
GALLUP
Q25. During the introduction of the Euro, Member States of the European Union signed a « Stability Pact » by which everyone
committed to limiting their budget deficit. Can you tell me if you agree or disagree with each of the following opinions … ?
b) The « Stability Pact » is a good thing because, thanks to this, the Euro is a stable and strong currency
% EU12
Countries where the highest ratio of citizens agrees that the Pact is a good thing are Austria (77%, +3),
France (75%, +1), the Netherlands (75%, +1) and Greece (75%, -2).
Most citizens from the eurozone continue to believe that sanctions are implemented unevenly when
countries do not respect the Stability Pact. 44% held this view in 2006, while 29% did not. The ratio
both of those who agree and those who disagree with this opinion decreased from 2005, when the
respective figures were 48% and 36%.
Penalties for non-compliance with the Stability Pact are impartial
9/2006
10/2005
11/2004
11/2003
29
36
Total "Disagree"
38
40
44
48
Total "Agree"
48
40
28
(DK/NA)
15
14
19
Source:
FLASH EB 193
September 2006
GALLUP
Q25. During the introduction of the Euro, Member States of the European Union signed a « Stability Pact » by which everyone
committed to limiting their budget deficit. Can you tell me if you agree or disagree with each of the following opinions … ?
c) The measures foreseen against countries that do not respect the « Stability Pact » are not applied in the same manner to all
Member States
% EU12
In all but two countries, the share of citizens who agreed with these statements outnumbered the share
of those who disagreed with them. This was overwhelmingly true in Finland (57% versus 11%),
Ireland (56% versus 19%) and Austria (58% versus 22%). The two countries where more citizens
disagreed with impartiality of the penalties for this kind of non-compliance than agreed were the
Netherlands and Belgium (47% versus 39% in the Netherlands, and 42% versus 30% in Belgium).
Executive Summary, page 23
Flash EB No 193 – The euro five years after
The Gallup Organization
In 2006, contrary to last year’s results, respondents were more likely to think that the rules of the
Stability Pact in terms of public deficit and debt were respected by their countries. Responses of
“absolutely” and “rather” complied were closer to the 2004 figures. 44% of citizens were convinced
that their countries followed the rules, while 36% were convinced that their countries did not or rather
did not follow the rules.
The ratio of those who “absolutely” and “rather” agree that their country respects the Stability Pact
rules increased by 6 percentage points from 2005. The ratio of those who believe that their country
did not or rather did not respect those rules decreased by 14 percentage points.
The euro zone countries respect the Stability Pact rules
9/2006
Absolutely
10/2005
11/2004
11
11/2003
12
12
12
32
27
Rather
28
25
Rather not
25
11
Not at all
DK/NA
Source:
FLASH EB 193
September 2006
GALLUP
16
12
12
28
32
32
18
19
20
16
Q26. Would you say that currently [COUNTRY] respects the rules of the Stability Pact concerning the limits in terms of
public deficit and debt?
% EU12
Austria (80%, +4), Finland (75%, -9), the Netherlands (69%, -3) and Luxemburg (68%, -11) are still
the countries with the largest share of respondents thinking that the rules are respected.
At the other end, the Germans (50%, -28), the French (47%, -13) and the Portuguese (46%, +3) lead in
the ratio of those who do not believe their countries respect the rules of the Stability Pact.
page 24