International Integration and Political Preferences: New Insights from the Recent History of EMU

6 Pages Posted: 24 Jul 2012

See all articles by Sergio Currarini

Sergio Currarini

University of Leicester - Department of Economics; Ca Foscari University of Venice - Dipartimento di Economia

Date Written: July 19, 2012

Abstract

Many international treaties and cooperation processes require prospective member countries to achieve given standards in either economic, social or environmental quality. In this paper I explore the effect of such standards on domestic political preferences and outcomes. We argue that risk averse voters are likely to lean more on “safe” policy platforms in response to the increased polarization due to the membership requirement. This is particularly true when failure to join the international coalition implies severe losses. I then use these arguments to interpret the marked shift in political outcomes that took place in the Euro-zone prior to the adoption of the Euro in 2002, and propose a similar key of interpretation for political outcomes in countries that are at risk of exit from the EMU.

Keywords: European Monetary Union, International Integration, Political Preferences

JEL Classification: F50, F59

Suggested Citation

Currarini, Sergio, International Integration and Political Preferences: New Insights from the Recent History of EMU (July 19, 2012). Review of Environment, Energy and Economics (Re3), Forthcoming, Available at SSRN: https://ssrn.com/abstract=2115575

Sergio Currarini (Contact Author)

University of Leicester - Department of Economics ( email )

Department of Economics
Leicester LE1 7RH, Leicestershire LE1 7RH
United Kingdom

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

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