International fiscal rules and domestic support for austerity

Abstract

In recent decades, fiscal integration in Europe has manifested through restrictive rules. However, the consolidation of public finances often encounters citizens’ resistance. International obligations can raise public support for costly domestic policies that are consistent with the obligations’ terms, but can European fiscal pledges influence public opinion and boost support for austerity? I fielded an original survey experiment in Italy and manipulated information about the existence of a new fiscal rule, national or European, mandating austerity measures. In stark contrast with extant research, I find no evidence that the source of the fiscal rule matters when measuring respondents’ support for austerity. This result suggests that the effect of international pledges on garnering public support for costly domestic measures wanes if these measures directly burden citizens’ financial well-being. Moreover, relinquishing fiscal autonomy in favour of new European rules appears unlikely to aid politicians in winning public endorsement for an austerity agenda.