Friday, November 9, 2018
Income Inequality And Trust In National Governments In Central, Eastern And Southeastern Europe
Trust in national governments has reached worryingly low levels in Central, Eastern and Southeastern Europe (CESEE), at least compared to the EU-15 average. In addition, trust in the EU is generally higher than trust in national governments, underlining the importance of the prospect of joining the EU in these societies. Very recently, the Organization for Economic Co-operation and Development (OECD) and the European Bank for Reconstruction and Development (EBRD) have published major reports, concluding that trust is essential for a well-functioning economy and growth. Based on unique data from the Euro Survey (compiled by Oesterreichische Nationalbank, the central bank of Austria), we study the impact of income inequality on trust in national governments in ten countries in Central, Eastern and Southeastern Europe, the CESEE-region (see the complete study for more details).