The COVID pandemic and public support for the euro

The COVID pandemic had disastrous effects on health and economic activity worldwide. In the euro area, mandatory lockdowns contributed to a sharp fall in production and a rapid rise in unemployment, inducing an expansionary fiscal and monetary response. This column examines the effects of the pandemic and the ensuing economic policies on public support for the euro. Public support reached historically high levels during the pandemic in spite of the rise in unemployment. Expansionary fiscal and monetary policies initiated at the EU level significantly contributed to this outcome, which was not seen during previous crises in the euro area.