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Flash Eurobarometer 386

THE EURO AREA

REPORT

Fieldwork: October 2013

Publication: November 2013

This survey has been requested by the European Commission, Directorate-General for Economic

and Financial Affairs and co-ordinated by Directorate-General for Communication.

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.

Flash Eurobarometer 386 - TNS Political & Social

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Flash Eurobarometer 386

The euro area

Conducted by TNS Opinion & Social at the request of

the European Commission, Directorate-General for Economic

and Financial Affairs (DG ECFIN)

Survey co-ordinated by the European Commission,

Directorate-General for Communication

(DG COMM Research and Speechwriting Unit)

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TABLE OF CONTENTS

INTRODUCTION .................................................................................................. 3

MAIN FINDINGS ................................................................................................. 51. SUPPORT FOR THE EURO ........................................................................... 8

1.1. The impact of the euro on the country ................................................ 81.2. The impact of the euro on the European Union.................................. 111.3. The euro and European identity ........................................................ 14

2. EURO COINS AND BANKNOTES ................................................................ 172.1. Recognising and handling euro coins ................................................ 172.2. Difficulties with euro coins ................................................................ 202.3. Satisfaction with the current selection of euro coins ......................... 222.4. Recognising and handling euro banknotes ........................................ 27

3. THE EURO AS A MENTAL BENCHMARK FOR PRICE CALCULATIONS .......... 293.1. Exceptional purchases ....................................................................... 303.2. Common purchases ........................................................................... 323.3. The usefulness of dual price displays in Estonia ................................ 34

4. THE EUROS IMPACT ON TRAVEL ............................................................. 374.1. Travelling abroad .............................................................................. 374.2. International usefulness of the euro ................................................. 40

5. MACROECONOMIC ASSESSMENTS ............................................................ 485.1. The economic coordination in the euro area ...................................... 485.2. Last years inflation rate ................................................................... 515.3. Expectation of this years inflation rate ............................................. 525.4. Price increases in Estonia in the changeover period .......................... 55

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6. ECONOMIC REFORM................................................................................. 576.1. Underlying attitudes towards economic reform................................. 576.2. Evaluation of sectorial reforms ......................................................... 676.3. Evaluation of importance of reforms ................................................. 71

7. PERSONAL ECONOMIC OUTLOOK ............................................................. 79ANNEXES

Technical specifications

Questionnaire

Tables

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INTRODUCTION

The euro is the official currency in 17 member states of the EU: Austria, Belgium,

Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta,

the Netherlands, Portugal, Slovakia, Slovenia and Spain. These countries are collectively

known as the euro area or the eurozone. Estonia is the country that has joined the euro

area most recently, in January 2011.

Euro coins and banknotes were launched in 2002, and euro is now the currency of

around 332 million1 people within Europe. The European Commission has repeatedly

measured changes in public perception of the euro in the euro area countries. This report

presents results from the latest wave of one such survey. The original survey, in March

2000 (Flash EB 76), dealt with respondents expectations about the euro. Subsequent

waves of this survey have been adapted to include additional measurements, reflecting

the expansion of the euro area into new countries.

The current wave of the study surveyed respondents in the euro area about a range of

topics including:

Perceptions of and support for the euro Practical use of the euro: handling coins and banknotes The use of the euro as a mental benchmark for making calculations when making

purchases

The euros impact on travel Macroeconomic assessments Economic policy and reforms in the euro area Perceptions of current and future household income.

This survey was carried out by TNS Opinion & Social network in the 17 euro area

countries between 07 and 09 October 2013. Some 15,528 respondents from different

social and demographic groups were interviewed by telephone in their mother tongue on

behalf of the European Commission, Directorate-General for Economic and Financial

Affairs (DG ECFIN). The methodology used is that of Eurobarometer surveys as carried

out by the Directorate-General for Communication (Research and Speechwriting Unit)2..

A technical note on the manner in which interviews were conducted by the Institutes

within the TNS Opinion & Social network is appended as an annex to this report. Also

included are the interview methods and confidence intervals3.

1http://www.ecb.int/mopo/eaec/html/index.en.html2http://ec.europa.eu/public_opinion/index_en.htm3The results tables are included in the annex. It should be noted that the total of the percentages in the tables

of this report may exceed 100% when the respondent has the possibility of giving several answers to the

question.

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Note: In this report, countries are referred to by their official abbreviation. The

abbreviations used in this report correspond to:

ABBREVIATIONSBE Belgium LU Luxembourg

DE Germany MT Malta

EE Estonia NL The NetherlandsEL Greece AT AustriaES Spain PT Portugal

FR France SI Slovenia

IE Ireland SK SlovakiaIT Italy FI Finland

CY Republic of Cyprus*

EUROZ Euro Area

* Cyprus as a whole is one of the 28 European Union Member States. However, the acquis communautaire has

been suspended in the part of the country which is not controlled by the government of the Republic of Cyprus.

For practical reasons, only the interviews carried out in the part of the country controlled by the government of

the Republic of Cyprus are included in the CY category and in the Euro Area average.

* * * * *

We wish to thank the people throughout the euro area countries who have given their

time to take part in this survey. Without their active participation, this study would not

have been possible.

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MAIN FINDINGS

Support for the euro

More than half (57%) of those living in the euro area regard the euro as a goodthing for their country.

A higher proportion of respondents say that the euro is a good thing for the EU(68%).

Around a quarter (24%) of respondents says that having the euro makes themfeelmore European.

Euro coins and banknotes

A large majority of respondents (94%) say that euro banknotes are easy todistinguish and handle.

More than three-quarters of respondents (77%) say that they find euro coins easyto distinguish and handle.

The 2-cent (70%) and 1-cent (62%) coins are the most often mentioned byrespondents who experienced difficulties. In addition, almost half (49%) mentions

the 5-cent coin, 39% mention the 20-cent coin and 31% the 10-cent coin.

Almost two-thirds (63%) say that there is just the right number of denominationsof euro coins, 30% say there are too many, and 4% say there are not enough.

The 1-cent and 2-cent coins are the ones that respondents would most likelyremove (89% and 83% respectively).

The euro as a mental benchmark for price calculations

Almost two-thirds (68%) rely solely on the euro for calculating prices whenmaking common purchases. Conversely, almost a quarter (24%) mention they

still convert these prices to their old national currency.

However, when respondents calculate the cost of exceptional purchases, just half(50%) rely on the euro and two in five (41%) still convert the cost of thesepurchases to their former national currency.

A majority of respondents in four countries are still reliant on their formercurrency when purchasing exceptional items: Malta (61%), Slovakia (57%),

Belgium (55%) and Spain (51%). This compares to just 7% in Ireland.

The more respondents use their own currency to convert to the euro forexceptional purchases, the more likely they are to do so for common purchases.

Three-quarters of respondents in Estonia (76%) say that it is not useful forshopkeepers to continue to display prices in both the old and new currency (+ 27percentage points since 2011) and just 23% say that they still find it useful.

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The euros impact on travel

Half of all respondents (50%) across the euro area mention travelling outsidetheir own country at least once a year. This ranges from 89% of respondents in

Luxembourg to 29% of respondents in Greece.

Just under three-quarters of respondents (73%) say that the euro makes it easierto compare prices in different EU countries.

Just under half (48%) say the euro has made travelling easier and less costly. 29% of respondents say that the euro has reduced banking charges when they

are in EU countries.

Unsurprisingly, respondents who travel abroad at least once a year are morelikely to say that the euro has made price comparisons easier when travelling

(86%), that it has made travelling easier and less costly (58%) and that bankingcharges when travelling abroad have been reduced (36%).

Macroeconomic assessments

Nearly three quarters (72%) of respondents think that there should be more co-ordination of economic policy, including budgetary policies, amongst euro area

governments. This view is held by the majority of respondents in all countries

although to a lesser extend in Estonia (43%).

Six in ten (61%) of respondents in the euro area are able to correctly estimatetheir countrys inflation rate for last year.

Those living in the euro area remain pessimistic about inflation, with a relativemajority (43%) expecting it to increase in 2012, however 37% expect it to stay

the same.

More than nine out of ten respondents in Estonia (93%) think prices haveincreased during the changeover period.

Economic reform

79% of respondents think that there is a need for significant reforms to improveeconomic performance, and 76% think that governments need to save more

today to prepare public finances for ageing populations.

72% say economic reforms would be more effective if carried out in a coordinatedway at EU level.

50% think that successful reforms in other euro area countries have facilitatedreforms in their country.

71% disagree that the retirement age should be increased.

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21% say labour market reforms have had a negative impact on their nationaleconomy.

The majority of respondents think it is important their national governmentintroduces reforms to increase growth and employment, particularly on the labour

market (93%), the health system (89%), the education (88%) and the pensionsystem (87%).

Personal Economic Outlook

Thinking about the change in their household income since last year, respondentsare fairly evenly divided between those who say their income remained the same

(43%) and those who say it decreased (39%).

When asked to look to the future, respondents are more positive; a little over half(54%) anticipate that their household income will stay the same, and 27% that it

will decrease.

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1. SUPPORT FOR THE EUROThis first section assesses the extent to which those living in the euro area feel that the

euro is a good thing for their country and for the EU as a whole. It also investigates the

impact of the euro on their sense of European identity.

1.1. The impact of the euro on the countryV i e w s o n w h e t h e r o r n o t t h e e u r o i s a g o o d t h i n g f o r t h e i r co u n t r y a r e s l ig h t l y

m o r e p o s i t iv e t h a n l a st y e a r

More than half (57%) of those living in the euro area regard the euro as a good thing for

their country. On the other hand, one in three (33%) says that it is a bad thing, while

7% say that they can't decide if it is good or bad.

These findings represent a positive shift in opinion since the last wave in 2012 when 55%

described the euro as a good thing and 35% said that it is a bad thing.

With the exception of Portugal and the Republic of Cyprus, more than half of respondents

in each of the countries in the euro area say that having the euro is good for their

country. Respondents in Ireland (72%), Luxembourg (70%) and Finland (69%) are

particularly likely to say that the euro is a good thing, along with 65% of German

respondents.

Opinion is most negative in Portugal (46%) and the Republic of Cyprus (43%) where

fewer than half describe it as a good thing for their country.

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Respondents living in Estonia are the most likely to be undecided about whether or not

the euro is a good thing for their country (19%). This is notably higher than the euro

area average of 7%.

Consequence of having the euro for the country

Socio-demographic analysis indicates that men are more likely than women to say

that the euro is a good thing for their country (64% vs. 51%). There are also differences

by age of respondent with 15-24 year olds most likely to say that the euro is a good

thing for their country (65%), particularly compared with respondents aged 40-54 and

55+ (both 55%). In addition, the longer a respondent stayed in education, the more

likely they are to say the euro is a good thing for their country. Those who are either still

studying (72%) or left education aged 20+ (67%) are particularly positive about the

effect the euro is having on their country compared with those who left education at 15

(38%) or between 16 and 19 (51%).

Furthermore, people living in large towns (61%) are more likely to say the euro is a good

thing for their country than those who are living somewhere less urban: living in a small

or mid-size town 57% and rural village 55%. It is also the case that respondents who are

employees (64%) or self-employed (61%) are more likely than those who are not

working (55%) or are manual workers (39%) to be positive about the euro.

Three in four (75%) of those who think that having the euro is a good thing for the EU

say that it is also a good thing for their country. In comparison, 16% of those who say

that having the euro is a bad thing for the EU say it is a good thing for their country.

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1.2. The impact of the euro on the European UnionJ u st o v e r t w o t h i r d s o f t h o s e l iv i n g i n t h e e u r o a r e a t h i n k t h e e u r o i s a g o o d

t h i n g f o r t h e E U

Just over two thirds (68%) of those living in the euro area say that the euro is a goodthing for the EU. Over a fifth (22%) think the euro is a bad thing for the EU, while 5%

are undecided and 5% do not know.

Once again, for the third consecutive year, the proportion of respondents saying that it is

a good thing for the EU has not changed. However, there has been a slight decrease in

those who say it is a bad thing (22% vs. 24% in 2012).

A majority of respondents in each country consider the euro to be a good thing for the

EU. Opinion is particularly positive in Ireland (77%), with seven in ten or more

respondents in Luxembourg (72%), Finland, Spain and Malta (all 71%) and Germany

(70%) saying that the euro is a good thing for the EU.

On the other hand, the Republic of Cyprus is least likely to describe the euro as a goodthing for the EU (54%), with 28% saying that it is a bad thing. Other countries with a

higher than average proportion of respondents describing the euro as a bad thing are

Belgium (29%) and the Netherlands (28%).

Respondents in Estonia are once again the most likely to say they cannot decide (20%).

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Consequence of having the euro for the EU

Socio-demographic analysis highlights that, as for the question about the impact on

their country, men are more likely than women to say that the euro is good for the EU

(72% vs. 65%). Younger people aged 15-24 are also most likely to say that it is a good

thing (73%), followed by those aged 25-39 (70%).

Furthermore, the longer a respondent remained in education, the more likely they are to

say that the euro is a good thing for the EU. For example, 77% of those who are still

studying and 76% of those who left education aged 20+ describe the euro as a good

thing for the EU, compared with 53% of those who left at 15 and 64% of those who left

aged 16-19.

Respondents living in large towns are the most likely to say the euro is a good thing for

the EU (70%), compared to those living in small/mid-sized towns and rural villages (both

68%). In addition, employees (73%) and the self-employed (72%) are most likely to say

that the euro is a good thing for the EU; just 55% of manual workers and 66% of those

who are not working think it is a good thing.

Nine out of ten of those who think that having the euro is a good thing for their country

say that it is also a good thing for the EU. In comparison, 35% of those who say that

having the euro is a bad thing for their country say it is a good thing for the EU.

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1.3. The euro and European identityJu s t u n d e r a q u a r t e r o f r e sp o n d e n t s sa y t h a t h a v i n g t h e e u r o m a k e s t h e m f e e l

m o r e Eu r o p e a n

Around one quarter (24%) of respondents say that having the euro makes them feelmore European, which is exactly the same as at the previous wave and very similar to

the finding for the last six waves of the survey. Once again, 74% say that the euro does

not have an impact in terms of making them feel more European.

Respondents living in Malta (38%), Ireland (35%) and Italy (33%) are the most likely to

say that the euro makes them feel more European. On the other hand, respondents in

Greece (14%) and the Netherlands (16%) are the least likely to say the euro has made

them feel more European. Findings for Estonian respondents are very similar to those for

the euro area overall; 25% say the euro has made them feel more European.

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The euro and European identity

The socio-demographic analysis demonstrates thatmen are more likely to say that

the euro makes them feel more European (28% vs. 21% of women). Similarly, those

aged 54 and under (26%) are more likely than those aged 55+ (21%) to say that it

makes them feel more European.

Furthermore, the longer a respondent remained in education, the more likely they are to

say that the euro makes them feel European. For example, 28% of those who are still

studying and 31% of those who left education at 20+ feel more European as a result of

the euro, compared with 14% of those who left education at 15 and 20% of those who

left aged 16-19.

Following the trend of earlier questions, respondents living in large towns, employed

people and the self-employed are the most likely to express positive views and say that

the euro makes them feel more European (all 28%).

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2. EURO COINS AND BANKNOTESThis section examines attitudes to euro notes and coins, in particular the ease with which

those in the euro area recognise and handle them, as well as their overall level of

satisfaction with them.

2.1. Recognising and handling euro coinsMo r e t h a n t h r e e q u a r t e r s f i n d i t e a sy t o d i s t i n g u i sh a n d h a n d l e e u r o c o i n s

More than three-quarters of respondents (77%) say that they find euro coins easy to

distinguish and handle. On the other hand, one in five (21%) says that they are difficult

to distinguish and handle.

Overall since 2003 the proportion who says that it is easy to distinguish and handle euro

coins has generally increased. The exceptions are the period 2009 and 2010 when the

proportion decreased from 78% in 2008 to 72% in 2010. At the current wave there has

been a small downward shift of 1 percentage point in the proportion describing them as

easy to distinguish and handle compared with the last wave in 2012.

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A majority of respondents in each country describe euro coins as easy to distinguish and

handle. Those living in Portugal (95%), Finland (92%), Greece (92%) and Spain (91%)

are particularly likely to describe euro coins as distinguishable and easy to use. Although

views are generally positive, in some countries a quarter or more of respondents

describe euro coins as difficult to distinguish and handle: Estonia, the country that most

recently adopted the euro (32%), Germany (30%), France (30%), the Netherlands

(29%), Slovakia (29%), Belgium (27%) and Austria (25%). It is important to note

however that even though nearly a third of Estonians expressed a negative view of euro

coins, 61% said that they are easy to distinguish and handle, which is similar to the

finding at the last wave (63%).

Recognising and handling the euro coins

Socio-demographic analysis shows that women report the most difficulty in

distinguishing and handling euro coins (24% vs. 19% of men). Furthermore as age

increases, so does the percentage who say that it is difficult to distinguish and handle

euro coins: 9% of those aged 15-24 say this, compared to 25% of those age 40-54 and

29% of those aged 55+.

Views are also more negative among those who think the euro is a bad thing for their

country and/or the EU. More than one in four (27%) of those who say that the euro is

bad for their country and 29% of those who think the euro is bad for the EU also say that

it is difficult to distinguish and handle euro coins.

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2.2. Difficulties with euro coinsT h e lo w e r d e n o m i n a t i o n c o in s a r e t h e m o s t d i f f ic u l t t o d i s t in g u i s h a n d h a n d l e

Those respondents who experience difficulties distinguishing and handling euro coins

were asked which coins cause the most problems for them. They are most likely to saythat the 2-cent (70%) and 1-cent (62%) coins cause difficulties, although almost half

(49%) mention the 5-cent coin, 39% mention the 20-cent coin and 31% the 10-cent

coin. Fewer experience difficulties with the 50-cent coin (23%), the 1-euro (12%) and 2-

euro coins (11%).

It is worth noting that fewer respondents in the current wave say that they have

difficulties with the 20-cent coin (39% vs. 43% at the last wave) and the 50-cent coin

(23% vs. 27% at the last wave). On the other hand, there has been an increase of two

percentage points in those saying that they find the 1-cent and 2-euro coins difficult.

Respondents in most euro countries cite the two smallest denomination coins as the

more difficult to use. Four in five or more respondents in Luxembourg (89%), Slovakia

(85%), Belgium (82%), France (81%) and Italy (80%) mention the 2-cent coin and this

pattern is very similar for the 1-cent coin.

In fact the 2-cent coin is most cited in ten countries and the 1-cent coin is most

mentioned in five euro countries. As in previous waves of the survey, views are quite

different in the Netherlands and Finland where nearly four in five respondents say they

have difficulties with the 20-cent euro coin (79% and 78% respectively).

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It is also worth noting that respondents in Greece are particularly likely to mention the 5-

cent coin (61%) and respondents in Slovenia are particularly unlikely to cite the 10-cent,

20-cent, 50-cent, 1-euro and 2-euro coins.

Difficulties with euro coins

Socio-demographic analysis demonstrates that men are more likely than women tosay that they have difficulties with the 1-cent, 5-cent, 20-cent and 50-cent coins.

The views of different age groups are fairly similar, although respondents aged 40+ are

the most likely to say they experience difficulties with the 20 and 50-cent euro coins.

Interestingly, respondents views of whether or not the euro is a good thing for their

country and the EU do not seem to influence their attitudes to individual coins. For

example 43% of those who think the euro is a good thing for their country also say that

they have difficulty with the 20-cent coin compared with 34% of those who think the

euro is a bad thing.

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2.3. Satisfaction with the current selection of euro coinsMo r e t h a n t h r e e i n f i v e co n s i d e r t h e r e i s j u s t t h e r i g h t n u m b e r o f e u r o c o i n s

When respondents were asked for their views on the number of denominations of eurocoins, 63% say that there is just the right number, 30% say there are too many, and 4%

say there are not enough.

Overall the proportion of euro area respondents who think there is just the right number

of euro coins has been steadily increasing since 2003, however, at the current survey

fewer respondents say that it is about right (63% vs. 66% in 2012) and more say that

there are too many (30% vs. 26% in 2012).

Most euro area countries think that there is just the right number of different euro coin

denominations. Finland is the country most likely to be happy with the current number of

denominations (88%), followed by Slovenia (73%) and Portugal (72%). At the other end

of the scale, slightly fewer than half of respondents from Belgium (45%), Ireland (48%),

Slovakia (49%) and Austria (49%) say there is just the right number of denominations of

euro coins. It is also worth noting that exactly half of respondents in Estonia say that the

current number of denominations is just right while 43% say that there are too many.

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The chart below shows the findings for those who said just the right number for the last

two years. Notable decreases in the percentage of respondents saying that there are just

the right amount of euro coins can be seen in Ireland (-14 percentage points) and

Austria (-11 percentage points). In contrast, there have been smaller, but still notable,

increases in the percentage of respondents saying that there are just the right amount of

euro coins in the Republic of Cyprus (+8 percentage points) and Italy (+6 percentagepoints).

In terms of socio-demographic analysis women are more likely than men to say that

there is the right number of denominations (64% vs. 62%). The youngest respondents

and those who are still studying are also particularly positive with 71% of 15-24 year

olds and 72% of students saying that there is the right number of euro coins.

Self-employed respondents are least likely to say that there is just the right number of

euro coins (58%) compared with 64% of those not working and 63% of both employees

and manual workers.

Respondents with positive views about the effect of the Euro on their country are more

likely to say there is just the right number of euro coins when compared to those who

think the euro is a bad thing for their country (65% vs. 60%). This trend also applies to

those who think the euro is a good thing for the EU (64% v. 59%).

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Those respondents who say that there are too many denominations of euro coins were

asked whether they think any should be removed, and if so, which ones.

The 1-cent and 2-cent euro stand out as the coins that respondents would most like to

be removed and are mentioned by 89% and 83% respectively. Both are mentioned by a

similar proportion of respondents as last year. In direct contrast to the last wave, fewer

respondents now say that they would like the 5-cent, 10-cent, 20-cent, ands 1-euro

coins to be removed.

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Which Euro coins should be removed? 2012-2013

Respondents in 14 countries are most likely to nominate the 1-cent euro for removal. In

12 of these countries more than nine in ten name the 1-cent coin, with almost all

Maltese (98%) and Irish (97%) respondents nominating it.

More than nine in ten respondents in Luxembourg (93%) cite the 2-cent coin, while a

particularly high proportion of respondents in Finland would like to see the 5-cent coin

removed (84%). Respondents living in Finland are also the most likely across Europe to

mention the 10-cent coin (27%), while respondents in Greece are more likely than others

to say that the 1-euro, 2-euro and 50-cent coins should be removed (15%, 21% and 3%

respectively).

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Base: those who answered there are too many coins with different values, % EURO AREA

Socio demographic analysis doesnt show notable differences.

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2.4. Recognising and handling euro banknotesO v e r n i n e i n t e n p e o p l e i n t h e e u r o a r e a s a y t h a t i t i s e a sy t o r e c o g n i se a n d

h a n d l e e u r o b a n k n o t e s

A large majority of respondents (94%) say that euro banknotes are easy to distinguish

and handle; just 4% describe them as difficult in this regard. This is exactly the same

result as in the previous wave, and in general there have only been small changes in this

measure since 2003.

In 14 countries nine in ten or more respondents say that euro banknotes are easy to

distinguish and handle. The most positive views are to be found in Finland (98%) and

Greece (97%), while respondents living in Slovakia, Estonia, and Slovenia are a little less

likely to describe them as easy (86%, 87% and 88%). It is worth noting that a higher

than average proportion of respondents in Estonia (6%) say that they find euro

banknotes neither easy nor difficult to distinguish and handle.

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Recognising and handling the euro bank notes

Socio-demographic analysis shows that once again men are most positive with 95%

saying the euro bank notes are easy to distinguish and handle compared with 94% of

women. Those aged 55+ are the least likely to say that it is easy to distinguish and

handle euro notes, particularly compared to those aged 15-39 (92% vs. 96%).

Furthermore, those who completed their education prior to age 16 and those who are

manual workers are less likely than their counterparts to be able to distinguish and

handle euro notes (89% and 91% respectively).

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3. THE EURO AS A MENTAL BENCHMARK FOR PRICE CALCULATIONSThis section explores the extent to which the euro has replaced national currencies as a

mental benchmark for calculating prices. The usefulness of displaying prices in euros and

the national currency during the transition period in Estonia is also discussed.

R e sp o n d e n t s l iv i n g i n t h e e u r o a r e a a r e l e s s l ik e l y t h a n a t t h e l a st w a v e t o

c o n v e r t f r o m e u r o s t o t h e i r f o r m e r c u r r e n c y w h e n m a k i n g a l l t y p e s o f p u r c h a se s

Almost seven in ten respondents (68%) do not tend to convert from euros to their

former currency when making common purchases, while around one in five (24%) say

that they still convert these prices to their old national currency. The proportion of

respondents who rely solely on the euro for calculating prices on common purchases has

increased since the last wave by 4 percentage points.

However, when respondents calculate the cost of exceptional purchases just half (50%)

rely on the euro and two in five (41%) still convert the cost of these purchases to their

former national currency. This represents a shift since the last wave in 2012 when 48%

of respondents just used the euro for their calculations and 45% still converted their

purchases to their former currency.

The euro as a mental benchmark for price calculations

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3.1. Exceptional purchasesA majority of respondents in four countries are still reliant on their former currency when

purchasing exceptional items: Malta (61%), Slovakia (57%), Belgium (55%) and Spain

(51%).

Respondents in Ireland are the most likely to rely solely on the euro (89%). However,

two thirds or more of those in the Republic of Cyprus (69%), Finland (68%), Greece

(66%) and Slovenia (66%) are also able to rely just on the euro.

It is worth noting that the proportion of respondents in Estonia who rely solely on the

euro has increased significantly since the last wave of the survey, from 31% to 44% in

2013.

Exceptional purchases such as the purchase of a car or a house for example

Socio-demographic analysis reveals that men are more likely than women to use the

euro as their benchmark when making exceptional purchases (55% vs. 46%). Younger

respondents aged 15-24 are also most likely to solely rely on the euro (72%),

particularly when compared with those aged 40-54 (44%) and 55+ (45%). Level of

education would also seem to determine how respondents use the euro with those who

left education later most able to rely solely on the euro: 79% of those still studying and

55% of those who left education aged 20+ compared with 38% of those who left

education at 15+. It is also worth noting that the self-employed are the most likely to

use the euro as a benchmark (57%), while manual workers are least likely (41%).

On the other hand, respondents living in rural villages are the most likely to convert

exceptional purchases to their former currency (45%) compared with those in small/mid-

size and large towns (40% and 38% respectively).

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Those who are positive towards the euro in terms of whether or not it is a good thing for

their country or the EU are more likely than those who think it is a bad thing to use the

euro as a benchmark when buying exceptional purchases. More than three in five (61%)

of those who think that having the euro is a good thing for their country say they use the

euro as a benchmark compared to 35% of those who say it is a bad thing. The same

pattern applies for those who consider the euro a good thing for the EU (56% vs. 38%).

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3.2. Common purchasesA majority of respondents in every country rely solely on the euro when making common

everyday purchases although this varies from a high of 92% of those in Ireland to 51%

in Slovakia. A particularly high proportion of respondents also use the euro as their

benchmark in Finland (84%) and Republic of Cyprus (83%).

In contrast, respondents in Slovakia are particularly likely to say that they usually

convert from euros into their old currency (40%). It is also worth noting that nearly

seven in ten respondents in Estonia (69%) say that they usually dont convert from euros

into their old national currency while 19% do still convert.

Common purchases such as day-to-day shopping

Socio-demographic analysis reveals that once again men are more likely than women

to use the euro as their benchmark when making everyday purchases (72% vs. 65%).

Younger respondents aged 15-24 are also most likely to solely rely on the euro (85%),

particularly when compared with those aged 40-54 (65%) and 55+ (63%). Level of

education would also seem to determine how respondents use the euro day-to-day, with

those who left education later most able to rely solely on the euro: 90% of those still

studying and 74% of those who left education aged 20+ compared with 54% of those

who left education at 15+.

It is also worth noting that those who are employed are the most likely to use the euro

as a benchmark (71%), while manual workers are least likely (62%). Respondents living

in large towns are the most likely to use the euro as a benchmark for buying everyday

items (72%) compared with those in small/mid-size (68%) and rural villages (67%).

Once again, those who are positive towards the euro in terms of whether or not it is a

good thing for their country or the EU are more likely than those who think it is a badthing to solely rely on the euro when making everyday purchases.

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Nearly four in five (79%) of those who think that having the euro is a good thing for their

country say that they use the euro as a benchmark compared to 51% of those who say it

is a bad thing. The same pattern applies for those who consider the euro a good thing for

the EU (75% vs. 51%).

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The graph below plots respondents reliance on their own currency to convert prices to

the euro when making exceptional purchases against when they buy everyday items. It

demonstrates that there is a relationship between the two and that those who still use

their own currency to convert to the euro for exceptional purchases are also more

likely to do so for common purchases.

3.3. The usefulness of dual price displays in EstoniaR e sp o n d e n t s i n E st o n i a a r e i n c r e a si n g l y m o r e l i k e ly t o s a y t h a t t h e y a r e

c o m f o r t a b l e w i t h j u s t h a v i n g e u r o p r i ce s d is p l ay e d

Since Estonia joined the euro in 2011 respondents in Estonia have been asked a separate

question about the usefulness of having prices displayed in both the euro and the former

national currency. As the chart below illustrates, every year respondents in Estonia

become more comfortable with just having euro prices displayed. In fact, now three-

quarters (76%) say that it is not useful for shopkeepers to continue to display prices in

both the old and new currency (+ 27 percentage points since 2011) and just 23% say

that they still find it useful (- 25 percentage points since 2011).

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Socio-demographic analysis reveals that younger respondents aged 15-24 (30%) and

25-39 (28%) are most likely to say that they it would be useful to continue having dual

display of prices. This is also the case for respondents who are still studying (34%) and

those living in rural villages (29%). The self-employed are most likely to want a dual

display of prices to continue (30%), while respondents who think the euro is a bad thing

for their country are more likely to say they would like it to continue (35%), compared

with those who say they euro is a good thing for their country (20%).

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4. THE EUROS IMPACT ON TRAVELThis section examines how often respondents travel abroad and the perceived impact of

the euro on their travels in terms of price comparisons, ease of travel, costs and banking

charges.

4.1. Travelling abroadH a l f o f r e s p o n d e n t s i n t h e e u r o a r e a t r a v e l a b r o a d a t l e a s t o n c e a y e a r

Half of all respondents (50%) across the euro area say they travel outside their own

country at least once a year. This result is exactly the same as at the last wave.

Findings are not consistent across all countries. In fact there are wide variations, with

those living in Luxembourg (89%), Slovenia (77%), the Netherlands (75%), Ireland

(74%) and Belgium (72%) the most likely to travel abroad at least once a year. At theopposite end of the scale are respondents in Greece (29%) and respondents in Spain

(33%).

Travelling at least once a year outside the country

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Although there are some small year-on-year changes in the amount people are

travelling, none of them are statistically significant.

Socio-demographic analysis indicates that men are more likely than women to travel

abroad at least once a year (55% vs. 46%). The most frequent travellers also tend to be

younger respondents aged 15-24 (63%), those who are either still studying (66%) or left

education at 20+ (61%), those living in large towns (55%), those living in larger

households of 4+ (58%), employees (60%) and the self-employed (64%).

In addition, respondents who think that having the euro is a good thing for their country

are much more likely to say they travel outside their country at least once a year

compared to those who say it is a bad thing (60% vs. 38%). The same pattern applies

for those who consider the euro a good thing for the EU (55% vs. 43%).

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4.2. International usefulness of the euroRespondents were asked a series of questions about their views of the euro when

travelling abroad.

T h r e e q u a r t e r s s a y t h e e u r o h a s m a d e i t e a s ie r t o c o m p a r e p r i c e s i n d i f f e r en tc o u n t r i e s

Just under three-quarters of respondents (73%) say that the euro makes it easier to

compare prices in different EU countries; 16% say that it hasnt made this any easier.

Just under half (48%) say the euro has made travelling easier and less costly while

almost two in five (38%) disagree with this statement. On the other hand, just 29% of

respondents say that the euro has reduced banking charges when they are in EU

countries, while 35% disagree that this is the case.

These findings are very similar as at the previous wave of the survey with the exception

of ease of comparing prices when in different EU countries which has decreased by one

percentage point.

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The following chart compares the results of all respondents with those of respondents

who travel abroad at least once per year. It is interesting that the views of respondents

who travel abroad at least annually are more positive than the total sample, which

includes people who dont travel abroad at least once a year. In each case, they are

more likely to say that the euro has made price comparisons easier when travelling

(86%), that it has made travelling easier and less costly (58%) and that bankingcharges

when travelling abroad have been reduced (36%).

A high majority of those living in Ireland (81%) say that travelling abroad is easier and

less costly with the euro. More than three in five respondents in Malta (69%) and in

Finland (62%) respondents agree that the euro has a positive effect on the cost and ease

of travelling.

Italy is the only country where respondents are more likely to say that the euro has not

made travelling easier (45% vs. 37% Yes). Views in Greece, France and Slovenia are

split fairly evenly between those who think it has got easier and less costly and those

who do not.

A majority of respondents in Estonia (54%) say that travelling is easier and less costly

since the euro, however 18% disagree and a high of 28% say that they do not know.

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The euro has made travelling easier and less costly

The chart below shows that there are only four significant changes in the results since

the last wave. Respondents in Malta and Estonia are now more likely to say that the euro

has made travelling easier and less costly (+ 12 and +7 percentage points respectively).

However, fewer respondents in Luxembourg now say that the euro has made travelling

easier and less costly compared to 2012 (-5 percentage points).

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In every country in the euro area two in three or more respondents say that the euro has

made it easier to compare prices when travelling in different EU countries. More than

nine in ten respondents in Ireland (91%) say this, as do eight in ten or more respondents

in Malta (85%), Luxembourg (84%), the Netherlands (81%) and Finland (80%). At the

other end of the scale, just two in three respondents in Slovakia (65%), Estonia (66%)

and France (66%) say that the euro has made it easier to compare prices when travelling

in different EU countries. In fact 29% of those in France say that the euro has not made

it easier to compare prices when travelling.

It is worth noting that almost three in ten respondents in Estonia (28%) say they do not

know whether is easier to compare prices when travelling in different EU countries.

The euro has made it easier for you to compare prices when in differentEU countries

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There are a few significant changes in the findings by country since the last wave of the

survey. Those in Greece and Slovenia are now less likely to say that the euro has made it

easier to compare prices when travelling in different EU countries (-4 percentage points),

while respondents in Belgium and Malta are more likely to say this (both +4 percentage

points).

The chart below shows that a significant proportion of respondents in each euro area

country are unable to assess whether the euro has reduced banking charges when

travelling. In fact, in Estonia nearly three-quarters of respondents (74%) are unable to

answer the question.

It also shows that Malta is the only country where a majority of respondents (60%) think

that the euro has reduced banking charges when travelling in other EU countries. In

contrast, 45% of respondents in France think that the euro has not reduced these

banking charges.

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The euro has reduced banking charges when travelling in different EU

countries

Comparing the findings for the countries in the euro area with those from the last wave

of the survey shows that Slovakia is the only country that has seen a significant increase

in the proportion saying that the euro has reduced banking charges when travelling to

different EU countries (+ 5 percentage points). On the other hand, in Greece (-5

percentage points), the Netherlands (-5 percentage points) and Ireland (- 5 percentage

points) there have been decreases in the proportion saying that the euro has reduced

banking charges.

It is also worth noting that there has been an increase in the proportion of respondents

in the Republic of Cyprus who say that the euro has not reduced banking charges when

travelling to other EU countries (+5 percentage points).

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Socio-demographic analysis illustrates some clear patterns across each of the three

benefits of travelling within the euro area. Men are significantly more likely to be positive

about each of the three benefits. For example 33% of men say the euro has reduced

banking charges when travelling in different countries compared with 25% of women.

Age also seems to determine respondents attitudes to the usefulness of the euro when

travelling in the euro area. Respondents aged 55+ are the least likely to say the euro has

made it easier to compare prices when travelling (65%), or that the euro has reduced

banking charges when travelling (24%).

It is also the case for each of the three benefits that those who are still in education or

left at 20+ are most likely to be positive about them. For example 86% of those who are

still studying and 83% of those who left education aged 20+ agree that the euro has

made it easier for them to compare prices when in different EU countries, compared with

51% of those who left education at 15 and 69% of those who left between the ages of 16

and 19. Similarly, employees and the self-employed are more likely to be positive about

each of the three benefits than manual workers and those who are not working.

Respondents who believe that the euro is a positive thing for their country are more

likely to agree with each of the statements about the benefits of the euro when travelling

in the euro area. For example 59% of those who say the euro is a good thing for their

country agree that the euro has made travelling easier and less costly, compared to 31%

of those who say the euro is bad for their country. This trend also applies when analysing

the same benefit by those who think the euro is a good or bad thing for the EU (55% vs

32%).

It is also the case that respondents who express positive views about the international

benefits of one benefit are more likely to agree with the other two. For instance, 87% of

respondents who say the euro makes travelling easier and less costly also think that it

has made it easier to compare prices when in different EU countries, compared to 62% of

those who say travelling is not easier or less costly.

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5. MACROECONOMIC ASSESSMENTSThis section of the report discusses the perceptions of the coordination of economic

policy in the euro area as well as respondents perceptions and expectations linked to the

inflation rate in their country. In addition, the perceived impact of the introduction of the

euro on prices in Estonia will be reviewed.

5.1. The economic coordination in the euro areaRespondents were asked if they felt there was an appropriate amount of coordination of

economic policy, including budgetary policies, within the euro area. Nearly, three

quarters (72%) think that there should be more co-ordination of such policies. Fewer

than one out of ten think there is currently an appropriate level of co-ordination (9%),

while 8% say there should be less co-ordination of economic policy, including budgetary

policies. Around one in ten (11%) are unsure.

There has been no significant change in opinion since the last wave of the survey.

Respondents in Finland are the most likely to say that there is already an appropriate

level of coordination of economic policy, including budgetary policies in the euro area

(22%), but even so 46% of respondents in Finland still think that there should be more

coordination in this area.

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In fact, a majority of respondents in all countries think that there should be more

coordination of economic policy, including budgetary policies. Respondents in Spain and

Italy (both 83%) are the most likely to say this, followed by those in Portugal (82%) and

Greece (81%). In contrast, just 43% of respondents in Estonia say the same. However,

the latter also have high levels of uncertainty on this issue (37%), as do respondents in

Malta (25%) and Finland (22%).

The economic coordination in the euro area

Socio-demographic analysis illustrates that respondents aged 25+ are more likely to

say that there should be more coordination of economic policy (72% of 25-39 year olds,

73% of 40-54s and 72% of 55+) compared to those aged 15-24 (68%). Those who

completed their education aged 16-19 (73%) and those who did so aged 20+ are also

more likely to say there should be more co-ordination (74%). Respondents living in large

and small/mid-size towns (both 73%) and employees, the self-employed and those not

working (all 72%) are also more likely to say that there should be more coordination of

economic policy in the euro area.

Respondents who think the euro is a good thing for their country are more likely to say

there should be more co-ordination compared to those who say the euro is a bad thing

for their country (74% vs. 68%). The same pattern applies for those who think the euro

is a good or bad thing for the EU (75% vs. 67%).

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5.2. Last years inflation rateThe majority of respondents in the euro area place the inflation rate in their country at

between 1.5% and 4% in 2012. A third (33%) say the inflation rate was between 1.5%

and 2.5% and 28% say it was between 2.5% and 4%. Less than one in ten (7%)

estimate that the 2012 inflation rate was below 1.5%, while 11% say it was considerably

higher - between 4% and 10%. More than one out of ten (15%) are unable to give an

estimate.

Given that the 2012 inflation rate for the 17 country euro area was 2.5%4, this means

61% of the euro area population chose a range that encompasses the correct inflation

rate.

These results are broadly in line with the 2012 survey, where 32% estimated the 2011

inflation rate at between 1.5% and 2.5%, slightly fewer than three out of ten (28%) put

inflation at between 2.5% and 4% and 14% said it was between 4% and 10%.

The chart below presents the results by country with the range corresponding to the

2012 annual inflation rate circled. In a number of countries respondents tend to

overestimate the inflation rate in their country, and this is particularly the case for

respondents in Greece (65%), Spain (45%) and Ireland (45%).

4http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tec00118

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Respondents in Germany (47%), France (37%), Ireland (34%), Italy (31%) and Slovenia

(30%) are most likely to correctly estimate their country's inflation rate in 2012,

although none of these represent an absolute majority.

More than 40% of respondents in the Netherlands (47%), Finland, Belgium (both 45%),

Estonia (44%), Austria (42%) and Luxembourg (41%) underestimate their 2012 inflationrate.

A substantial proportion of respondents are unable to assess the 2012 inflation rate in

Cyprus (50%), Malta (39%), Estonia (31%), Greece (28%), Spain (28%), and Portugal

(28%). Respondents in these countries also recorded high levels of uncertainty in the last

wave of the survey.

5.3. Expectation of this years inflation rateT h o s e l i v i n g i n t h e e u r o a r e a r e m a i n r e l a t iv e l y p e s s im i s t i c a b o u t i n f l a t i o n , w i t h

m o s t e x p e c t i n g i t t o in c r e a se i n 2 0 1 2

Respondents were asked what they expected to happen to inflation this year. The

majority (43%) expect it to increase, while 37% think it will remain the same, and 15%

think it will be lower.

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These figures represent significant changes from those recorded in 2012 and 2011. For

instance, in 2012 more than half (57%) expected inflation to increase (the same figure

was also recorded on this measure in 2011), 28% thought it would stay the same, and

one in ten (10%) thought it would decrease.

The majority of respondents in 9 countries think that the inflation rate will be higher in

2013 than it was in 2012. A half of respondents in Slovenia (52%) and Italy (50%) think

this way, as do 48% of those living in Germany. In contrast, just a quarter (25%) of

respondents in Malta think that the inflation rate will be higher in 2013. Respondents in

Finland (48%), Austria (47%), and Luxembourg (46%) are the most likely to expect

inflation to remain the same in 2013 as it was in 2012. Respondents in Spain (26%) and

Greece (24%), on the other hand, are the most likely to expect inflation to fall in 2013.

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The inflation rate: expectation for the present year

The clear pattern shown in the following chart is that all of the 17 euro countries have

recorded lower proportions of respondents that think that the inflation rate will be higher

in 2013 than was the case in the previous wave asking about inflation rate expectation in

2012. The change in expectation between waves on this measure is particularly great in

respondents from the following countries: Malta (-24 points), Spain (-23), Slovakia (-

22), Portugal (-21) and Greece (-21).

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Socio-demographic analysisreveals the following differences. Women are more likely

than men to expect inflation to be higher this year (48% vs. 38%). Younger people aged

15-24 (50%) and 25-39 (45%) are more likely to expect inflation to rise than those aged

40-54 (40%) or 55+ (42%). Those who think the euro is a bad thing for their country

are more likely to expect inflation to increase (53% bad thing vs. 37% good thing) as are

those who think the euro is a bad thing for the EU (55% bad thing vs. 39% good thing).

5.4. Price increases in Estonia in the changeover periodMo r e t h a n n i n e o u t o f t e n r e s p o n d e n t s i n Es t o n i a t h i n k p r i ce s h a v e i n cr e a s ed

d u r i n g t h e c h a n g e o v e r p e r i o d .

More than nine out of ten (93%) respondents in Estonia think the introduction of the

euro has had an impact on prices during the changeover period. Seven in ten (70%)

think that all prices have increased, while a further 23% think that prices in only some

categories have increased. One in twenty (5%) thinks that prices have remained more or

less the same.

This pattern of responding is very similar to the last wave in 2012 and also the wave

before that in 2011. In both 2012 and 2011 64% said all prices had increased, while

27% said some prices had increased.

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6. ECONOMIC REFORMThis section examines respondents attitudes toward economic reforms in general as well

as the positive and negative effects reforms have had on the national economy in various

sectors. The perceived need for national governments to introduce reforms in a number

of sectors in order to boost growth and employment is also considered.

6.1. Underlying attitudes towards economic reformA t t i t u d e s t o e co n o m i c r e f o r m s ar e g e n e r a l l y p o s it i v e - w i t h t h e m a r k e d

e x c e p t i o n o f a r e f o r m t o i n c r e a se t h e r e t i r e m e n t a g e

Respondents were given five statements about economic reform and asked the extent to

which they agreed or disagreed with each one.

Almost eight out of ten agree that there is need for significant reform to improve

economic performance (79%), and three quarters agree that governments need to save

more now to prepare public finances for an ageing population (76%). Almost three

quarters think that economic reforms would be more effective if they were implemented

in a coordinated way at the EU level (72%).

In contrast respondents are most likely to disagree that successful reforms in other euro

area countries have facilitated reforms in their own countries (50% disagree).

Furthermore, respondents are strongly opposed to increasing the retirement age - 71%

disagree with this idea, just a quarter (26%) agree.

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At least two thirds of respondents in each euro area country agree there is a need for

significant reforms to improve economic performance. Around nine out of ten

respondents in Italy (91%) and Cyprus (89%) think this way, as do 88% of those in

Ireland. Respondents in Spain are the least likely to agree with this statement, but even

so more than two thirds agree (67%).

There is a need for significant reforms to improve the performance ofour economy

The higher the education level of the respondent, the more likely they are to agree that

there is a need for significant reforms to improve economic performance. For example,

81% of those who completed their education aged 20+ and 85% of those still studying

agree there is a need for economic reform, compared to 72% of those who completed

education prior to age 16.

Manual workers (74%) are the least likely to agree when compared to other occupation

groups, such as the self-employed (81%) or employees (80%). In addition, respondents

who think the euro is a good thing for their country are more likely to agree than those

who think the euro is a bad thing (84% vs. 71%). The same pattern applies for those

who think the euro is a good thing for the EU (83% vs. 70%).

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There is much more variation in opinion between countries when it comes to whether

successful reforms in other euro countries have facilitated reforms in their own country.

Almost seven out of ten (68%) respondents in the Netherlands agree that this is the

case, as do 66% of those in Belgium, 62% of those in Malta and 60% of those in Ireland.

In contrast just 30% of respondents in Greece and Italy agree.

Six out of ten (59%) respondents in Greece disagree that successful reforms in other

euro countries have facilitated reforms in their own country, as do 57% of respondents inItaly and 55% of respondents in Spain.

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I think successful reforms in other euro-area countries havefacilitated reforms in our country

The older the respondent, the less likely they are to agree that successful reforms in

other euro countries have facilitated reforms in their own country (15-24:51%,

55+:36%). Manual workers (32%) are also less likely to agree compared to other

occupation groups such as the self-employed, for example (45%).

In addition, respondents who think the euro is a good thing for their country are more

likely to agree than those who think the euro is a bad thing (47% vs. 28%). The same

pattern applies for those who think the euro is a good thing for the EU (45% vs. 28%).

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There is majority support in all countries in the euro area for the idea that governments

should be saving more now to prepare public finances for an ageing population. Nine out

of ten respondents in Malta agree with this statement (91%), as do 87% of those in

Ireland, 86% of those in Luxembourg and 85% of those in Belgium. Agreement is

weakest in Greece and Spain, but even in these countries at least six out of ten are in

agreement (62% and 66% respectively).

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Governments need to save more today in order to prepare publicfinances for the ageing of populations

Those that live in a large town (73%) are less likely to agree that governments should be

saving more today than do those that live in a rural village (78%) or a small/medium

sized town (77%).

Respondents who think the euro is a good thing for their country are more likely to agree

that governments should be saving more now to prepare public finances for an ageing

population compared to those who think the euro is a bad thing (80% vs. 72%). The

same pattern applies for those who think the euro is a good thing for the EU (good thing:79% vs. bad thing: 72%).

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The majority of respondents in all countries disagree that the retirement age should be

increased to ensure the sustainability of the pension system. Four out of five (80%) of

respondents in Slovakia, Spain and Italy, 79% of respondents in Germany, and 77% of

respondents in Greece disagree that the retirement age should be increased. Almost half

(48%) respondents in the Netherlands agree that the retirement age should be

increased.

The retirement age should be increased to ensure sustainability of thepension system

Respondents who agree that the retirement age should be increased to ensuresustainability of the pension system are more likely to be:

male (29% male vs. 23% female) aged 55+ (32%) have the highest education levels (31% of those who completed education aged20+ and 33% of those still studying)

be self-employed (29%) or not working (29%)In addition, respondents who think the euro is a good thing for their country are more

likely to agree that the retirement age should be raised (31% vs. 20% who say the euro

is a bad thing). The same pattern applies for those who think the euro is a good thing for

the EU (29% good thing vs. 19% bad thing).

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A majority of respondents in all euro area countries think that economic reforms would

be more effective if they are carried out in a coordinated way at EU level. Eight out of ten

respondents in Italy (80%) agree with this statement, as do 77% of those in Portugal

and France. At the other end of the scale, the lowest levels of agreement were in Estonia

(49%) and Finland (also 49%).

Disagreement is highest amongst respondents in Finland (40%), the Netherlands (40%),

Austria (34%) and Slovakia (28%).

Economic reforms would be more effective if they are carried out in acoordinated way at EU level

Respondents who agree that economic reforms would be more effective if they are

carried out in a coordinated way at EU level are more likely to be:

male (76% men vs. 67% women) aged 15-24 (75%) have the highest education levels (74% of those completing education 20+, 77%of those still studying)

employees (73%), not working (71%), or self-employed (71%)In addition, respondents who think the euro is a good thing for their country are more

likely to agree that economic reforms would be more effective if they are carried out in a

coordinated way at EU level (79% vs. 61% who say the euro is a bad thing). Similarly,

almost four out of five (79%) of those who think the euro is good for the EU say that

economic reforms would be more effective if they are carried out in a coordinated way at

EU level, compared to 61% of those who say the euro is a bad thing for the EU.

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6.2. Evaluation of sectorial reformsT w o t h i r d s o f r e s p o n d e n t s a r e u n a b l e t o a s se s s t h e i m p a c t o f e co n o m i c r e f o r m s

Respondents were asked to nominate the sectors where they thought reforms have had

the most positive impact on their national economy. When given the opportunity torespond spontaneously almost two thirds (65%) are unable to name any sectors.

Almost one out of ten (8%) mention the labour market, while one out of twenty mention

market reforms (5%), slightly fewer mention education systems (4%) and other reforms

(4%). However, 17% spontaneously mentioned reforms in other specific areas as being

the ones that have had the most positive impact on their national economy.

Evaluation of sectorial reforms

In all but four countries in the euro area, the majority of respondents are unable to nameany sectors where reforms have had the most positive impact. The exceptions are

Slovakia (63%), Slovenia (59%), Luxembourg (58%) and Ireland (51%) where

respondents mentioned at least one sector.

In fact, respondents in Slovakia are the most likely across the euro area to mention

multiple sectors detailed in the table below. Within Slovakia the labour market is the

most mentioned (26%) followed by the education system (16%), taxation (14%) and

reforms in general (13%).

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Across the euro area respondents are most likely to spontaneously mention reforms in

other specific areas in the Netherlands (30%), while respondents in Luxembourg are

most likely to mention market reforms (16%), social security reforms (15%) and reforms

in general (13%). Pension system reforms were most likely to be mentioned by

respondents in Slovenia (12%).

The following chart illustrates that respondents find it easier to nominate sectors where

economic reforms have had the most negative impact on the economy. One out of five

(21%) mention the labour market, while 12% nominate the education system, 11% the

social security system and one in ten (10%) the pension system.

However, respondents in the euro area are the most likely to spontaneously indicate

reforms in other specific areas (26%) as having had the most negative effect on their

national economy. In addition 37% are unable to nominate any sectors at all.

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Respondents in Slovenia (82%) Spain (79%), Italy (76%), Greece (70%), Slovakia

(69%) and the Netherlands (69%) are the most likely to be able to nominate at least one

sector where they think reforms have had the most negative impact.

Respondents in Italy are most likely to mention the labour market (39%) and alsoreforms in general (15%), while those in Spain are most likely to mention the education

(28%) and social security systems (25%). Respondents in Slovenia are most likely to

mention reforms to the pension system (24%), taxation (24%) and market reforms

(10%) as having the most negative economic impact.

Respondents in 13 countries are most likely to mention reforms in other specific areas

not covered in the table. This is particularly the case for respondents in the Netherlands

and Portugal (both 40%).

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6.3. Evaluation of importance of reformsT h e m a j o r i t y o f r e sp o n d e n t s t h i n k t h e i r n a t i o n a l g o v e r n m e n t s h o u l d i n t r o d u c e

r e f o rm s t o i n cr e a se g r o w t h a n d e m p l o y m e n t

Although many respondents have difficulty in naming sectors where reforms have had apositive impact on their national economy, most of them agree that it is important for

their government to introduce reforms in specific areas to help increase growth and

employment.

Almost all (93%) think it is important that their national government introduces labour

market reforms to help increase growth and employment, and 89% think health system

reforms are important. At least eight out of ten also say that it is important to introduce

education (88%), pension (87%) and social security system reforms (85%) to help

increase growth and employment. Four out of five (80%) mention taxation, while almost

two thirds (65%) mention market reforms as important reforms for their nationalgovernment to introduce to help increase growth and employment.

These results are comparable to those of 2012.

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High majorities of respondents in every euro area country think it is important for their

national government to introduce labour market reforms to help increase growth and

employment. Nine out of ten or more respondents in all countries, with the exception of

Slovenia (87%), Greece (87%), Spain (87%) and Estonia (84%), agree with this

statement at this high level.

Labour market

Women are slightly more likely than men to say that it is important for their national

government to introduce labour market reforms (95% vs. 92%). Manual workers (97%)

are more likely to say this than other workers (93% for all other types). Those aged 15-

24 (96%) are also more likely to say this than those in older age groups (92% of those

aged 55+ for example).

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At least eight out of ten respondents in all but one country think it is important their

national government introduce health system reforms to help improve growth and

employment. Support ranges from 97% of respondents in Ireland and 96% of those in

Malta, to 80% of those in Spain.

Health system

Women are slightly more likely than men to say that it is important for their national

government to introduce health system reforms (92% vs. 87%). Manual workers (92%)

are more likely to say this than other types of workers. Respondents aged 15-24 (92%)

are more likely to say this than those in older age groups (87% of those aged 55+ for

example).

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A large majority of respondents in each euro area country say it is important that their

national government introduces pension system reforms to increase growth and

employment. In excess of nine out of ten respondents in Ireland (92%), Malta (92%),

France (92%), and Belgium (91%) say this. At the other end of the scale, slightly fewer

than three quarters (74%) respondents in Estonia and Slovenia think these reforms are

important.

Pension system

There are few substantial differences along socio-demographic lines; although men

(84%) and those aged 55+ (85%) are less likely to think that pension reforms are

important when compared to women (89%) and younger respondents (87-89%).

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More than three quarters of respondents in each country say that it is important for their

national government to introduce social security system reforms to improve growth and

employment. Nine out of ten respondents in Ireland (90%) and Italy (89%) say this is

important, compared to 78% of those in Estonia and Cyprus.

Social security system

Women are slightly more likely than men to think it is important to introduce social

security reform (87% vs. 82%), and manual workers are more likely to think this waythan those who are self-employed (88% vs. 82%).

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There is a greater range of opinion across the euro area when it comes to market

reforms, as in telecom, gas/electricity (e.g. opening sectors for free competition,

privatisation). Despite the wider range of responses an absolute majority of respondents

in each country still think these reforms are important.

At least eight out of ten respondents in Malta (88%), Ireland and Belgium (both 82%)think it is important their national government introduces market reforms to improve

growth and employment. In contrast, just over half of respondents in Estonia (53%) and

the Netherlands (53%) agree.

Market reforms

Manual workers are more likely to think it is important their government introduces

market reforms (68%) than employees (63%).

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A majority of respondents in each country think it is important their government

introduces taxation reform to help increase growth and employment. Respondents in

Italy (92%) are most likely to think this way, compared to 62% of those in Slovenia and

63% of those in Estonia.

At least one quarter of respondents in Spain (25%) and Slovenia (31%) think that it isnot important to introduce taxation reforms.

Taxation

Respondents aged 15-24 are less likely to think that taxation reforms are important tohelp increase growth and employment (75% vs. 81-82% for older groups). The self-

employed (84%) and manual workers (83%) are more likely to think taxation reforms

are important than those who are employees (79%) or not working (80%).

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A majority of respondents in each euro area country agree that introducing reforms in

the education system is important to increase growth and employment. Respondents in

Italy (93%), Germany, Austria and Portugal (all 92%) and Ireland (91%) are the most

likely to think this way, compared to 64% of those in Finland and 67% of those in

Estonia. Finland has the highest proportion of respondents who say that education

system reforms are not important with more than three out of ten saying this (32%).

Education system

The youngest respondents are more likely to think that introducing reforms in the

education system is important to increase growth and employment (15-24: 91% vs.

55+: 87%). Those who left education aged 15 or younger are less likely to think that

education reforms are important (85%) compared to those who were aged 16+ when

they left education or are still studying (88-89%).

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7. PERSONAL ECONOMIC OUTLOOKThis section looks at respondents' views on their personal financial situation in the past

year and for the coming year.

Ex p e c t a t i o n s f o r t h i s y e a r a r e a l i t t l e m o r e p o s i t i v e t h a n a s s e s sm e n t s o f l a st

y e a r ' s h o u s e h o ld i n c o m e

Respondents were asked to say how their household income had changed since last year,

and how they expected it to change in the current year. As the following charts illustrate,

expectations for the future are a little more positive then the assessment of the past

year, with greater numbers expecting their income to stay the same and fewer expecting

it to decrease in the current year.

Thinking about the change in their household income since last year, 43% of respondents

say their income remained the same and 39% say it decreased. Fewer (16%) say their

household income has increased since last year.

When asked to look to the future respondents are more positive about maintaining the

status quo. Just over half (54%) think that their household income will stay the same,

27% think it will decrease and 16% think their household income will go up.

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The charts below show the trends in perceptions of household income since 2007. The

proportion of respondents who report that their household income has increased since

last year has declined gradually over the period 2007-2013 (-5 points). During the same

period there has been a considerable increase in the proportion of respondents who say

that their household income has decreased since last year (+14). It is notable that the

period 2011-2012 saw the largest increase in those who say their household income has

gone down (+6 percentage points).

There is a similar pattern for expectations about the coming year. In the period 2007-

2013 the proportion of respondents that say they expect their household income to

increase has dropped by 11 percentage points. Over the same period the proportion that

expects their household income to decrease has gone up by 9 points overall. However it

is notable that the 2013 figure of 27% respondents expecting a decrease in household

income is significantly lower than the equivalent finding from 2012 (32%).

Change in household income

In many of the countries in the euro area, respondents are most likely to say that their

household income has stayed the same compared to last year. This is particularly the

case for respondents in Malta (61%), Finland (60%), Belgium (58%) and Austria (55%).

In marked contrast, more than eight out of ten respondents (83%) in Greece say that

their household income has decreased since last year. This is also the opinion of a

majority of respondents in Cyprus (76%), Portugal (66%), Spain (59%), Ireland (53%),

Italy (48%) and Slovenia (45%).

Respondents in Luxembourg (31%), Germany and Estonia (both 29%), are the mostlikely to say that their household income has increased since last year.

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Change in household income last year

There has been a notable rise in the proportion of respondents who say their household

income has decreased since last year in Cyprus (+15 percentage points), and the

Netherlands (+8 points), but there has been a decrease since last year for this measure

among respondents from Spain (-7 points) and Greece (-7 points).

Socio-demographic analysis shows that:

Those aged 25+ are the most likely to say that household income has decreasedsince last year (e.g. 41% of those aged 55+ vs. 33% of 15-24s)

The less educated the respondents, the more likely they are to say that householdincome has decreased since last year (lowest education level: 45%, highest: 34%)

Employees (32%) and manual workers (38%) are the least likely to say that theirhousehold income has decreased since last year (compared to 42% of the self-employed

and 43% of those not working).

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Across the euro area, respondents in most countries expect their household income to

remain the same in the current year. This is particularly the case amongst respondents in

Belgium (64%), Germany and Finland (both 63%), and Austria (62%).

In contrast, the majority of respondents in Greece (56%), Cyprus (52%) and Portugal

(49%) are the most likely to expect their household income to decrease in the currentyear. Respondents in these countries are also the most likely to say their household

income has decreased since last year.

Those living in Malta (36%), Luxembourg (33%) and Estonia (28%) are the most likely

to say they expect their household income to increase in the current year.

Expectation about the change in household income for this year

There has been a considerable decrease in the proportion that say they expect their

household income to go down in the current year amongst respondents in Greece (-17

percentage points), Portugal (-12), and Spain (-10).

Socio-demographic analysis highlights that those aged 55+ are the most likely to say

they expect their household income to decrease in the current year (31% vs. 20-27% of

younger age groups). Those with the lowest education levels are also more likely to

expect their household income to go down compared to those that remained in education

for longer (31% of those who left education 15 or below vs. 19% of those still studying).

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The scatter charts below illustrate the perceptions of household income in 2012 and

2013. The quadrants of the charts represent the following groups:

Upper right hand quadrant: positive perception in comparison to last year andpositive expectations for the future

Lower right hand quadrant: positive perception and low expectations Upper left hand quadrant: negative perception and high expectations Lower left hand quadrant: negative perception and low expectations

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The overall pattern of countries on the charts shows a linear arrangement, indicating that

perceptions of this years situation and future expectations tend to be broadly similar: if

the assessment of the change in income since last year is positive, expectations for the

future also tend to be positive.

The overall arrangement of countries has stretched slightly into the upper right quadrantfrom the lower quadrants, indicating a slight positive trend in the period between the two

waves. The overall the density of countries in the lower left quadrant remains, depicting

a generally negative outlook. However, assessments of the current personal financial

situation and expectations for the future are slightly more optimistic in 2013 than they

were in 2012, but this change is marginal.

With regard to individual countries, the two scatter plots show that Estonia, Germany,

Luxembourg, Finland and Austria have moved slightly further into the upper right

quadrant indicating marginally increased optimism in these countries. This is also true of

the euro area as a whole (as illustrated by the red diamond).

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ANNEXES

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TECHNICAL SPECIFICATIONS

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TS1

FLASH EUROBAROMETER 386

The euro areaTECHNICAL SPECIFICATIONS

Between the 7th and the 9th of October 2013, TNS Political & Social, a consortium created between TNS political &

social, TNS UK and TNS opinion, carried out the survey FLASH EUROBAROMETER 386 about The euro area.

This survey has been requested by the EUROPEAN COMMISSION, Directorate-General for Economic and Financial

Affairs. It is a general public survey co-ordinated by the Directorate-General for Commun