The euro as a source of European identity Changes of social representations from 1997 to 2002

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1 The euro as a source of European identity Changes of social representations from 1997 to 2002 Katja Meier-Pesti, Erich Kirchler and Tarek El-Sehity University of Vienna, Austria Corresponding author: Katja Meier-Pesti, Department of Psychology, University of Vienna, Universitaetsstrasse 7, A-1010 Vienna, Austria. T. +431/ ; F.: +431/ ; katja.meier@univie.ac.at. Note: The study presented in this manuscript is part of a research project granted by the Jubiläumsfonds Austrian National Bank, # 9545 (Euro-Preisentwicklung) to Erich Kirchler. Abstract Currencies are symbols of the economy of nations and can also be a symbol for national identity. They are restricted to a defined area, foster national self-esteem, support the desire of national continuity, and are tools of national sovereignty. After the phase of introduction, the euro may serve as a European symbol and a unifying medium on the way towards European integration. The euro was introduced in 1999 as book money, and in 2002 as physical money in form of notes and coins. In this paper, social representations of the euro and changes from 1997 and 2002 are analysed with the special focus on the euro as a symbol of European identity. In 1997 social representations of the euro in Austria were rather economically orientated, expressions on the economic functions were dominant. By the end of 2002, people may have incorporated more ideas about European identity in their representations of the euro as compared to Three independent samples completed a questionnaire on free associations to the euro in July 1997, November 2001, and November Results show different associative patterns at the three moments of associations. Keywords: Euro, European identity, social representations Introduction In 2002, national currencies of 12 European Union (EU) member states were physically replaced by the single European currency the euro. Beside the economic advantages of one single European currency, the euro may also be perceived as an important step towards European integration. Using the same money can be a strong unifying medium, and the euro may serve as a European (economic) symbol (Meier & Kirchler, 1998; Meier- Pesti & Kirchler, in press; Müller-Peters, 1998). In 1997, attitudes towards the euro were affected by identification with Europe. At present, as the euro has successfully been introduced in everyday affairs, it may be the other way round: rather than identity being a determinant of attitudes towards the euro, the euro may boost European identity. We investigate whether the introduction of the euro as common European currency made European affiliation more salient in everyday life, and whether the link between the euro and European identity has been strengthened. Social identity in particular, national and European identities - contributes to personal identity and has positive effects on the peoples self-esteem if the social group is positively evaluated. Since nations and Europe as conglomerate of various nations are large scale categories in which it is impossible for all members to interact, the identification and attachment an individual feels towards his or her nation and/or Europe are based on the social representations he or she has formed of that collective. People develop representations of their collective and conceive of their collective as an imagined community (Anderson, 1983). Social meaning of the euro was studied by analysing social representations of the euro. Social representations are defined as ideas, thoughts, images, and knowledge about a "social object", i.e., a subject matter of social interest (Moscovici, 1984). They constitute the commonly held knowledge and ideas of a collective or a social category, which allows mutual communication and behaviour. Social representations guide selection and evaluation of presented information. According to Jodelet (1993), a social representation operates as a system of interpretation of reality, serving as a guideline in our relation to the surrounding world. Thus, it orients and organizes our behaviour and communication (p. 184). National identity may be strengthened and represented by various national symbols. Among other symbols, the national currency stands for economic fitness and autonomy (Helleiner, 1998). Following Breakwell s (1986) identity process theory, currencies are symbols of (a) the collective self-esteem of a nation, (b) national continuity, (c) differentiation, and (d) efficacy. Collective self-esteem is strengthened by a highly stable currency and national wealth. Currencies are planned as long term projects and support the desire for national continuity. Since currencies are restricted to a specific geographic area, they also serve to differentiate between social and political entities. Moreover, currencies symbolize sovereign power in monetary policy and efficiency. -1-

2 With the shift of national autonomy to a more global decision level, importance of the supra-national category, in the present case the EU, increases. EU fulfills the prerequisite conditions for being a potent spender of supranational identity, positive collective self-esteem, trust in economic prosperity, political stability and continuity (Breakwell, 1996). Citizens formation of a supra-national identity (e.g., Ros, Cano and Huici, 1987, Salazar, 1998), a European identity, derives from being members of the EU. Various studies show that before the introduction of the euro, being European was rarely mentioned when people were asked what constitutes their personal identity, whereas belonging to a nation was a significant characteristic of definitions of self (Breakwell, 1996; Chryssochoou, 2000). In the present study, social representation of the euro of the years 1997, 2001, and 2002 were studied. Special focus was laid on the frequency of associations like Europe and European identity. It is hypothesised that the link between euro and European identity has been enforced after the physical introduction of the euro in the year Method Sample Three independent Austrian samples participated in the present study. The first sample completed a questionnaire in 1997, the second in 2001 and the third in The second and third simple were recruited at the University of Vienna and consisted of 196, and 248 respondents, respectively. Females constituted about two thirds of each sample. Data from 1997 were derived from a representative sample for the Austrian population (see Meier & Kirchler, 1998). To provide comparability, only participants with a college degree were selected from that sample (N = 244). Material Free associations towards the euro were collected by using a modified version of the associative network technique (de Rosa, 1995). The stimulus word "European single currency" was presented on a single page followed by six lines on which respondents wrote their free associations. Respondents listed their thoughts about the euro and indicated whether the named associations were positive, negative, or neutral. They were free to list one to six associations. Attitudes towards the euro were measured by adopting the scale used in the EU-wide study on the euro by Müller-Peters et al. (2001). Results Associations indicated by the first sample from 1997 were classified according to a categorisation scheme consisting of 26 categories, which was pre-established by the authors. The scheme was developed on the basis of two dimensions, one distinguishing between positively and negatively worded associations, and the other distinguishing between associations related to individual and national aspects (for details see Meier & Kirchler, 1998). Associations produced by the samples in 2001 and 2002 which were identical to those of the first sample were classified to the same categories as in Associations which were not named in 1997, were classified by three independent raters. The average interrater reliability of the three raters was satisfactory with a kappa higher than κ=.70. Individual attitudes towards the euro were computed on the basis of seven questions (Müller-Peters et al., 1998), which showed high reliability (Cronbach α=.78). Respondents holding attitudes lower than 2.6 on the five-point attitude scale were named opponents of the euro. Attitude indexes between 2.61 and 3.4 indicated indifference or neutral attitudes. People with attitude indexes higher than 3.4 were supporters. In sum, frequencies of associative categories of nine sub-groups were compared and analysed: attitudinal groups of euro opponents, neutral or indifferent persons and euro supporters, for the years 1997, 2001 and 2002, respectively. Frequency distributions of the associative categories were analysed across the nine sub-samples by chi-square statistics (Table 1). In all associative categories significant deviations from expected frequencies in at least one sub-group were observable. In the time span between 1997 and 2002 a shift from associations mainly related to the national level to the individual level is apparent. The more the euro has become part of everyday life the more personal consequences gained importance. Adaptation problems were named most frequently as negative consequence of the euro introduction in the years and, as an interesting detail, independently if respondents were in favour or against the euro. As hypothesised, in the years 2001 and 2002 euro supporters named more frequently -2-

3 associations relating to Europe and European identity than supporters of the year Moreover, associations related to positive and/or negative impacts of the single currency on the labour market were only mentioned in the year Participants asked in 2001 and 2002 did not stress the link between the euro and changes on the labour market. Table 1: Categories of associations and frequencies by year and sub-groups Attitudes toward the euro Attitudes toward the euro Attitudes toward the euro Associative categories (n=59) (n=56) (n=129) (n=16) (n=45) (n=135) (n=28) (n=59) (n=161) Positively evaluated associations / individual level: 11. Facilitation of tourism a 55 a b 29 b 12. Transparency of prices, a income 13. Positive feelings 4 b 5 b 23 b a a 14. Stronger European identity 1 b 4 b 16 b a a 15. Reduction of public debt 2 a 1 5 a Positively evaluated associations / national level: 21. Facilitation of trade 7 17 a 52 a b 0 b 3 3 b 22. Stimulation of national a b 9 b economy 23. Political unification of 3 b 8 19 b a a Europe 24. Stability of currency a 0 0 b b Europe as competitor of 1 b USA, Asia 26. Stimulation of labour markets a Negatively evaluated associations / individual level 31. Negative feelings b 6 17 a b 32. Fear of financial loss 18 a b b 16 a 27 a 55 a 33. Adaptation problems 4 b 10 b 13 b 12 a 29 a 70 a 17 a 38 a 78 a 34. Public economy measures 4 a 4 a 8 a b 35. Threat of national identity 5 a b 36. Lack of information 4 9 a b Negatively evaluated associations / national level 41. Instability of currency 26 a b b 42. Conversion problems 7 a 13 a 20 a b b 43. Increase of unemployment 6 a 4 13 a b b 44. Procedural and distributive 6 a 7 a b injustice 45. Increase of national 12 a 5 3 b 6 a b dependency 46. Economic disadvantages 5 a 4 a b b 47. Wrong timing 2 a Neutral descriptions 3 b 8 b 24 b 9 36 a 90 a a 97 a 61. Other Note: a adjusted standard residual > 1.96; b adjusted standard residual < The frequency table (3 by 3 subgroups by 26 association categories) was included in a correspondence analysis (ANACOR; Greenacre, 1993), which yielded two factors explaining 64% and 21% of the variance, respectively. Associative categories, which failed to explain more than 4% of the dimensions inertia were only marked as a -3-

4 number, corresponding to the numbers in Table 1. The graphical result of the correspondence analysis is presented in Figure 1. Figure 1: Results of correspondence analysis of frequencies of associative categories by sub-groups dimension facilitation of trade transparency of prices 1997, supporters 25 European identity increase of 11 positive feelings unemployment 2001, supporters 2002, supporters conversion problems neutral descriptions public economy measures stimulation of national economy stability of currency 1997, neutral respondents 35 instability of currency adaptation problems negative feelings 2001, neutral respondents , neutral respondents 2002, opponents fear of financial loss 1997, opponents 2001, opponents injustice economic disadvantages national dependency dimension 1 The first dimension distinguishes between respondents asked in 1997 on the left side from the samples of 2001 and 2002 on the right side and may therefore be labelled as dimension of time. Ignoring the evaluative aspect, injustice on the left side, and adaptation problems, positive feelings and neutral descriptions on the right side explain the most inertia of the first dimension and are therefore important markers of the this dimension. The markers support results from the chi-square statistics and confirm that the most important changes between 1997 and 2002 were characterised by a shift of attention from national consequences of the euro to personal impacts in everyday situations. On the second dimension euro supporters and euro opponents may be distinguished. Looking on the proportion of inertia explained by associative categories, national dependency, currency instability and financial loss are characteristics of euro opponents, whereas supporters especially stress economic advantages of the single European currency. How can changes in attitudes towards the euro be explained by frequencies of associative categories? In 1997, euro supporters as well as euro opponents stressed national consequences of the euro. Euro opponents complained about the increase of national dependency, since most political decisions in the monetary area are to be taken by the European National Bank in Frankfurt, Germany. Besides, they argued about the injustice of the currency conversion, in the way that richer nations would pay for the poorer participants in the European monetary union. Euro supporters stressed economic advantages of a single Europan currency and the facilitation of trade as important consequences of the currency conversion in In contrast, in 2001 and 2002, opposition towards the euro seems to base on expected and experienced problems in adapting to the new currency and on fears of financial loss. All prices were rounded up and the better name for the euro is Teuro (german conflation of the words teuer (in english: expensive) and the euro) are complaints often mentioned by euro opponents of the years 2001 and Euro supporters in 2001 and 2002 reported positive feelings and positive evaluation of the physical attributes of the euro notes and coins (e.g., design and colours). Besides, they seem to be aware of the strong European symbol, which is incorporated into the single European currency. -4-

5 Conclusion In accordance with Helleiner (1998), the euro is not only perceived as new monetary unit which substitutes national currencies and facilitates economic transaction processes within the European Union. The euro also serves as a European (economic) symbol and a unifying medium on the way towards European integration. The results clearly show that associations towards the stimulus word "euro" changed over time, and with the introduction of the euro as physical money, European identity and positive feelings were more frequent than before the introduction in The results of the correspondence analysis show that the first dimension, explaining almost three thirds of the variance, is defined by time, the adaptation period from 1997 to Only the second dimension, explaining one fifth of the variance, is defined by positive versus negative attitudes towards the euro. With the introduction of the euro, the adaptation process is going on steadily. References Anderson, B. (1983). Imagined Communities: Reflections on the Origin and Spread of Nationalism. London: Verso. Breakwell, G. M. (1986). Coping with Threatened Identities. London: Menthuen. Breakwell, G.M. (1996). Identity processes and social changes. In G.M. Breakwell & E. Lyons (Eds), Changing European Identities: Social Psychological Analyses of Social Change (pp ). Oxford: Butterworth-Heinemann. Chryssochoou, X.. (2000). Memberships in a superordinate level: Re-thinking the European Union as a multi-national society. Journal of Community and Applied Social Psychology 10, De Rosa, A. S. (1995). Le "réseau d associations" comme méthode d étude dans la recherche sur les représentations sociales: structure, contenus et polarité du champ sémantique. Cahiers Internationaux de Psychologie Sociales, 28, Greenacre, M. G. (1993). Correspondence Analysis in Practice. London: Academic Press. Helleiner, E. (1998). National currencies and national identities. American Behavioral Scientist, 41, Jodelet, D. (1993). Indigenous psychologies and social representations of the body and self. In U. Kim & J. W. Berry (Eds.), Indigenous psychology, (Vol. 17, pp ). London: Sage. Meier, K. & Kirchler, E. (1998). Social Representations of the euro in Austria. Journal of Economic Psychology, 19, Meier-Pesti, K. & Kirchler, E. (in press). Nationalism and Patriotism as Determinants of European Identity and Attitudes towards the Euro. Journal of Socio-Economics. Moscovici, S. (1984). The phenomenon of social representations. In R. Farr & S. Moscovici (Eds.), Social Representations (pp. 3-69). Cambridge: Cambridge University Press. Müller-Peters, A. (1998). The significance of national pride and national identity to the attitude toward the single European currency: A Europe-wide comparison. Journal of Economic Psychology, 19, Müller-Peters, A., Pepermans, R., Kiell, G. & Farhangmehr, M., (2001). (Eds.). The Psychology of European Monetary Union: A Cross- National Study of Public Opinion Toward the Euro. Santiago de Compostela: Grafinova. Ros, M., Cano, I. & Huici, C. (1987). Language and intergroup perception in Spain. Journal of Language and Social Psychology, 6, Salazar, J.M. (1998). Social identity and national identity. In S. Worchel, J.F. Morales, D. Páez & J.-C. Deschamps (Eds.), Social Identity. International Perspectives (pp ). London: Sage. -5-