Austerity and trust in EU institutions Examining the impact of austerity measures on public trust

The 2008 global financial crisis triggered a severe recession, leading several European Union (EU) member states to implement stringent austerity measures as part of bailout agreements. These policies—ranging from public sector wage cuts to privatization—sparked debates about their impact on Europe's social model and political stability. While existing research has documented the electoral losses of governing parties that enforced austerity, less attention has been paid to its effects on political trust at the EU level. This dissertation examines how austerity measures influence institutional trust in the EU, emphasizing two key moderating factors: responsibility attribution and individual support for austerity policies.
Building on the trust-as-evaluation approach, the dissertation investigates whether declining trust in EU institutions stems from the economic crisis itself, the austerity measures imposed, or a combination of both. It explores how citizens’ perceptions of the EU’s role in enforcing austerity shape their trust in EU institutions. Additionally, it assesses whether individual support for austerity policies mediates trust dynamics. The findings reveal that austerity measures negatively impact EU institutional trust, particularly when citizens attribute responsibility for these policies to the EU. However, individual support for austerity has only a modest mediating effect.
These insights contribute to the political economy literature by refining our understanding of trust formation during economic crises. The concluding section reflects on these findings in the context of post-pandemic economic policies, climate change, and security spending, highlighting the importance of public trust in shaping EU governance and integration.