Can a common currency foster a shared social identity across different nations? The case of the euro

Fostering the emergence of a “European identity” was one of the declared goals of the euro adoption. Now, years after the physical introduction of the common currency, we investigate whether there has been an effect on a shared European identity. We use two different datasets in order to assess the impact of the euro adoption on the fostering of a self-declared “European Identity”. We find that the effect of the euro is statistically insignificant. We interpret this result as suggesting that the euro did not have the desired positive effect on feelings of European identity. This result holds important implications for European policy makers. It also sheds new light on the formation of social identities.