Flash Eurobarometer 458. Report. The euro area

The euro area Survey requested by the European Commission, Directorate-General for Economic and Financial Affairs and co-ordinated by the 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. Fieldwork Publication December 2017 TNS Political & Social

The euro area Survey conducted by TNS Political & Social at the request of the European Commission, Directorate-General for Economic and Financial Affairs Survey co-ordinated by the European Commission, Directorate-General for Communication (DG COMM Media Monitoring and Analysis Unit)

Project number 2017.6289 Project title Eurobarometer Flash survey 458 about the views and attitudes related to the euro in the 19 euro area countries - Autumn 2017 Linguistic version EN Catalogue number KC-05-17-023-EN-N ISBN 978-92-79-73640-7 doi:10.2765/975891 European Union, 2017 http://ec.europa.eu/commfrontoffice/publicopinion

TABLE OF CONTENTS INTRODUCTION 2 KEY FINDINGS 4 I. SUPPORT FOR THE EURO 6 1 The impact of the euro on the country 6 2 The impact of the euro on the European Union 10 3 The euro and European identity 12 II. EURO COINS AND BANKNOTES 16 1 Distinguishing and handling euro coins 16 a. Difficulties with euro coins 19 b. Satisfaction with the current selection of euro coins 23 c. Attitudes towards the abolition of 1 and 2-cent coins 25 2 Distinguishing and handling euro banknotes 27 III. THE IMPACT OF THE EURO ON PRICES AND OTHER MACROECONOMIC ASSESSMENTS 30 1 The impact of the euro on prices 30 a. Prices change in the changeover period in Latvia and Lithuania 30 b. The impact of the euro on travelling abroad 32 c. Converting prices in euro to old national currencies 38 2 Economic policy coordination in the euro area 41 3 Expectation for this year s inflation rate 48 IV. ECONOMIC REFORMS AND OTHER SECTORIAL REFORMS TO BOOST GROWTH AND EMPLOYMENT 51 1 Economic reforms in euro area countries 51 2 Evaluation of sectorial reforms 58 ANNEXES Technical specifications Questionnaire Tables 1

INTRODUCTION The euro area is the monetary union of European Union Member States which have adopted the euro as their common currency and sole legal tender. The euro was introduced to world financial markets as an accounting currency on 1 January 1999. After a transitional period of three years, when the euro was the official currency but only existed as book money, the euro bank notes and coins were adopted and became the official currency on 1 January 2002 in 12 Member States 1. Since then a further seven Member States have adopted the currency, with the euro area now made up of the following countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. Whilst all EU Member States are part of the Economic and Monetary Union (EMU) and coordinate their economic policy-making to support the economic aims of the EU, the economies of the euro area Member States are more integrated. In order to realise the full benefits of the single currency, the management of monetary and economic policy within the euro area is different. The European Central Bank (ECB) is the governing authority that defines the single monetary policy of the euro area, with the primary objective of keeping prices stable. Economic policy is largely the responsibility of individual euro area countries, but national governments must coordinate their respective economic policies in order accomplish the common objectives of stability, growth and employment. Since the introduction of the euro in 2002, the European Commission has regularly conducted surveys measuring public perceptions of the euro among citizens living in the euro area countries. As the euro area has expanded, surveys have also included questions about the adoption of the euro in new euro area countries. In this survey such a question is asked to respondents in Latvia and Lithuania the most recent members to have adopted the euro currency. This Flash Eurobarometer survey represents the sixteenth in the series of surveys. It includes measures on: Support for the euro at a national and at an EU level, and views on its impact on the European identity; The perceived ease of handling and distinguishing euro coins and banknotes, views on the number of different value coins available, and attitudes towards the abolition of 1 and 2 cent euro coins. Whether or not citizens convert prices from euros to their former national currency when making purchases. The impact the euro has had in relation to travelling abroad in other EU countries whether it has made it easier and less costly and whether it has reduced banking charges or not; Within Latvia and Lithuania, the perceived impact of the euro on prices, in the changeover period; In relation to economic policy: perceptions of whether there is the appropriate amount of coordination among euro area governments, and whether EU economic policy coordination has strengthened, weakened or remained the same in recent years; Views on relation to the need for economic reforms; Expectations about the current year s inflation rate. 1 Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain 2

This survey was carried out by the TNS Political & Social network in the 19 Member States of the euro area between the 16 th and 18 th2. Some 17.547 respondents from different social and demographic groups were interviewed via telephone (landline and mobile phone) 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 Media monitoring and Analysis Unit) 3.. A technical note on the manner in which interviews were conducted by the Institutes within the TNS Political & Social network is appended as an annex to this report. Also included are the interview methods and confidence intervals 4. Note: In this report, countries are referred to by their official abbreviation. The abbreviations used in this report correspond to: Belgium BE Latvia LV Germany DE Luxembourg LU Estonia EE Malta MT Greece EL The Netherlands NL Spain ES Austria AT France FR Portugal PT Ireland IE Slovenia SI Italy IT Slovakia SK Republic of Cyprus CY * Finland FI Lithuania LT BE, FR, IT, LU, DE, AT, ES, PT, IE, NL, FI, EL, EE, SI, CY, MT, SK, LV, LT 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 who have given their time to take part in this survey. Without their active participation, this study would not have been possible. 2 With the exception of Austria, where fieldwork extended to the 25th October 3 http://ec.europa.eu/public_opinion/index_en.htm 4 The 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. 3

KEY FINDINGS Support for the euro Nearly two-thirds of respondents (64%) think that having the euro is a good thing for their country, the highest proportion since 2002, and up significantly from 56% in 2016. It is the view of the majority of respondents in 16 euro area countries. Around three-quarters of respondents (74%) say that the euro is a good thing for the EU, the highest proportion in the 2010-2017 series. Just over a quarter of respondents (27%) say that the euro makes them feel more European than before, up from 24% in 2016. The 2017 figure is the highest level reported in the 2007-2017 series. Euro coins and banknotes Almost all respondents (94%) say that they find euro banknotes easy to distinguish and handle, with more than four in five respondents in every country, and at least nine in ten respondents in 17 countries, saying this. Eight in ten respondents (81%) say that they find euro coins easy to distinguish and handle, with at least two-thirds of respondents in every country saying this. Low value euro coins cause more difficulty than high value euro coins among respondents who experience difficulties with euro coins. Three in five respondents (60%) think that the number of euro coins with different values is just right, the lowest proportion since 2011, and down from 63% in 2016. Around a third of respondents (34%) think that there are too many euro coins with different values. Although a majority of respondents say that that the number of euro coins with different values is just right, when prompted with the idea of abolishing 1-cent and 2-cent coins, nearly two-thirds of respondents (64%) support the idea. The majority of respondents support the abolition of these coins in all but two countries (Portugal and Latvia). Perceived impact of the euro on prices in Latvia and Lithuania Almost all respondents (94%) in Lithuania and more than three-quarters (77%) in Latvia think that there were price increases during the changeover period. Perceived impact of the euro on travelling abroad Half of respondents (50%) think that the euro has made travelling easier and less costly, a small increase compared with the proportion reported in 2016 (47%). It is the view of the majority of respondents in 12 countries. Opinion is evenly divided on whether the euro has reduced banking charges when travelling in different EU countries. Just over a third of respondents (35%) say that the euro has reduced banking charges while a similar proportion (36%) say that it has not. Converting prices in euro to former national currencies More than three-fifths of respondents (63%) say that they do not convert prices from euro to their old national currency; just under one in five (18%) say that they convert prices when making common purchases; around one in seven (15%) say that they convert prices when making exceptional purchases. 4

Views on economic policy coordination Two-thirds of respondents (67%) think that there should be more coordination on economic policy among euro area governments, one in eight (12%) that the degree of coordination is appropriate and 7% that there should be less coordination. The proportion of respondents thinking that there should be more coordination has decreased steadily since 2011. A third of respondents (34%) say that EU economic policy coordination has weakened in recent years, just under one in four (23%) that it has strengthened and a slightly larger proportion (26%) that it has not changed. Since 2016, there has been a notable drop in the proportion of respondents thinking that EU economic policy has weakened in recent years (-12 pp), with smaller increases in the proportions who think that it has strengthened (+5 pp) and that there has been no change (+4 pp). Expectations about the current year s inflation rate Opinion is evenly divided between those respondents who think the inflation rate this year will be higher (40%) and those who think it will remain the same (40%), with one in ten respondents (10%) expecting it to be lower. Since 2016, the proportion thinking it will be higher has increased (+4 pp). Views on the need for economic reforms and the importance of introducing reforms in specific public services and utility services Eight in ten respondents (79%) agree that there is a need for significant reforms to improve the performance of their economy. While three-quarters of respondents (75%) agree that there is a need for governments to save more money to prepare public finances for ageing populations, only a quarter (24%) agree that the retirement age should be increased to ensure the sustainability of the pension system. Opinion is more evenly divided on whether successful reforms in other euro area countries have facilitated reforms in the respondent s own country, 42% agreeing and 46% disagreeing. Across seven different public service and utility sectors, the majority of respondents think that it is important for their government to introduce reforms to boost growth and employment. Around nine in ten respondents hold this view in relation to the health system (91%), education systems (91%), the labour market (90%) and the pension system (89%). Respondents are somewhat less likely to think it is important for their government to introduce reforms in the areas of social security (87%) and taxation (82%). They are least likely to think it is important for their government to introduce market reforms to help boost growth and employment (63%). 5

I. SUPPORT FOR THE EURO The first chapter of the report examines whether respondents think having the euro has been a good or a bad thing, firstly for their country and secondly for the EU. It then looks at whether having the euro has made respondents feel more European or not. The report looks at long-term trends at the euro area level and the most recent year-on-year changes at a national level. Sociodemographic and key variable analyses focus on this latest wave of research. 1 The impact of the euro on the country Just under two-thirds of respondents think that having the euro is a good thing for their country Just under two-thirds of respondents (64%) think that having the euro is a good thing for their country and a quarter (25%) think that it is a bad thing 5. There has been a notable increase in the proportion that think that having the euro is a good thing for their country compared with that reported in 2016 (+8 percentage points), and a corresponding drop in the proportion that think it is a bad thing (-8 pp). Since 2011, the proportion of respondents thinking that the euro is a good thing for their country has remained relatively stable. The most notable changes are a small increase between 2014 and 2015 (+4 percentage points), followed by a small decline between 2015 and 2016 (-5 pp). The proportion saying that the euro is a good thing for their country now stands at its highest level since 2011, while the proportion that thinks that the euro is a bad thing is now at its lowest level in the series. 5 Q1.1 Generally speaking, do you think that...? Having the euro is a good or a bad thing for your country (ONE ANSWER ONLY) 6

In the longer term, the trend since 2002 shows the proportion who think having the euro is a good thing for their country has continued to increase since 2007, and is now at its highest ever level since the study began 6. Q1.1 Generally speaking, do you think that...? Having the euro is a good or a bad thing for your country (% - EURO AREA) 80% 70% 60% 51 51 52 53 50% 59 45 47 52 51 56 55 57 57 61 56 64 A GOOD THING 40% 30% 20% 10% 0% 11/2002 (EU12) 11/2003 (EU12) 11/2004 (EU12) 10/2005 (EU12) 09/2006 (EU12) 09/2007 (EU13) 07/2008 (EU15) 10/2009 (EU16) 10/2010 (EU16) 11/2011 (EU17) 10/2012 (EU17) 10/2013 (EU17) 10/2014 (EU18) 10/2015 (EU19) 10/2016 (EU19) 10/2017 (EU19) Views on whether having the euro is a good or a bad thing for their country vary considerably between countries of the euro area. The majority of respondents in all but three countries think that the euro has been a good thing for their country, with this view most widespread in Ireland (85%), Luxembourg (82%) and Germany (76%). The exceptions, where only a minority of respondents say that having the euro has been a good thing for their country, are Lithuania (36%), Italy (45%) and Cyprus (48%). Nonetheless, the share of people saying this in Italy and Cyprus has increased since last year. Comparing the results with those from 2016, the proportion of respondents who say that the euro is a good thing for their country has increased in 15 euro area countries, with the largest increases observed in Germany (+12 percentage points) and France (+11 pp), followed by Spain, Cyprus, Luxembourg and Portugal (+8 pp in each). Lithuania is the only country, where a significant proportion of respondents who think that the euro is a good thing for their country has decreased (- 6 pp). 6 Prior to 2007, the question text was.: It s one, two, three, four, five years since we have been using the euro instead of (NATIONAL CURRENCY). Today, would you say that the euro continues to cause you (a lot of difficulty, some difficulty or) no difficulty at all? 7

Q1.1 Generally speaking, do you think that...? Having the euro is a good or a bad thing for your country (%) A good thing 2017-2016 A bad thing 2017-2016 Can t decide (SPONTANEOUS) 2017-2016 Don't know EURO AREA 64 8 25 8 7 = 4 BE 57 3 32 5 9 3 2 DE 76 12 16 10 5 1 3 EE 69 5 12 2 14 1 5 IE 85 4 9 1 3 2 3 EL 57 3 30 2 9 1 4 ES 65 8 23 7 6 1 6 FR 64 11 25 12 5 2 6 IT 45 4 40 7 12 2 3 CY 48 8 34 13 14 5 4 LV 53 3 25 4 13 3 9 LT 36 6 48 3 11 = 5 LU 82 8 15 2 3 3 0 MT 64 = 16 2 12 2 8 NL 68 7 23 5 6 1 3 AT 64 3 22 1 12 4 2 PT 60 8 26 7 10 2 4 SI 63 3 25 2 9 2 3 SK 67 4 21 4 9 = 3 FI 73 7 14 6 9 3 4 Socio-demographic and key variable analysis Respondents who think that the euro is a good thing for their country are more likely to be: Men (68%), compared with women (59%); Aged 15-24 (75%), compared with the other three age bands ranging from 61%-63%; Those still studying (78%) and those who completed their full-time education aged 20 or over (72%), compared with those who finished aged 16-19 (57%) and those who finished aged 15 or under (42%); People who are not manual workers, particularly employees (70%, compared with manual workers 47%); People who have positive attitudes towards the euro on other measures, namely: Those who think that having the euro is good for the EU (80%), compared with those who say that the euro is bad for the EU (15%); 8

Those who think that the euro has made travelling abroad easier and less costly (79%), compared with those who do not (46%); Those who think that the euro has reduced banking charges when travelling in different EU countries (77%), compared with those who do not (56%). Q1.1 Generally speaking, do you think that...? Having the euro is a good or a bad thing for your country (% - EURO AREA) A good thing A bad thing EURO AREA 64 25 Gender Man 68 22 Woman 59 28 Age 15-24 75 15 25-39 63 28 40-54 61 29 55 + 62 25 Education (End of) 15-42 42 16-19 57 30 20+ 72 19 Still studying 78 14 Respondent occupation scale Self-employed 64 26 Employee 70 21 Manual workers 47 39 Not working 61 27 Having the euro for the EU A good thing 80 12 A bad thing 15 78 Travelling is easier/less costly Yes 79 14 No 46 41 Banking charges have been reduced Yes 77 16 No 56 34 9

2 The impact of the euro on the European Union Three-quarters of respondents think that having the euro is good for the EU Respondents are more likely to think that having the euro is beneficial for the EU than to think it is beneficial for their country. Around three-quarters of respondents (74%) say that the euro is a good thing for the EU and around one in six (16%) think that it is a bad thing 7. Since 2010, the proportion of respondents thinking that the euro is a good thing for the EU has, for the most part, remained relatively stable. Just over seven in ten respondents held this view in 2010 (72%), falling to just under seven in ten between 2011 and 2014, with a return to the 2010 level in 2015 (71%). In 2016 there was a small drop in the proportion (-4 percentage points). The proportion saying that the euro is a good thing for the EU now stands at its highest level since 2010, while the proportion that thinks that the euro is a bad thing is now at its lowest level in the series. Q1.2 Generally speaking, do you think that...? Having the euro is a good or a bad thing for the EU (% - EURO AREA) 90% 80% 72 70% 67 67 68 69 71 67 74 A GOOD THING 60% 50% 40% 30% 18 20% 10% 8 2 0% 09/2010 (EU16) 24 24 22 5 6 5 4 3 11/2011 (EU17) 10/2012 (EU17) 20 19 21 7 6 6 5 5 4 4 6 5 10/2013 (EU17) 10/2014 (EU18) 10/2015 (EU19) 10/2016 (EU19) 16 A BAD THING 10/2017 (EU19) CAN T DECIDE (SPONTANEOUS) DON'T KNOW Attitudes among people in the different euro area countries again vary to some extent, although there is considerably less variation than the results observed for the perceived impact of the euro 7 Q1.2 Generally speaking, do you think that...? Having the euro is a good or a bad thing for the EU (ONE ANSWER ONLY) 10

on their country. Indeed, a majority of respondents in all the countries agree that the euro is a good thing for the EU. Overall, at least six in ten respondents in each country think that having the euro has been a good thing for the EU. The largest majorities are seen in Ireland and Luxembourg (both 86%) and Spain (80%), while the lowest proportions are in Italy and Cyprus (both 62%). As before, respondents in both of these latter countries are however more likely to say that the euro has been a good thing for the EU than in 2016. Comparing the results with those from 2016, the proportion of respondents who say that the euro is a good thing for the EU has increased in 15 countries, with the largest increases observed in Cyprus and Portugal (+12 percentage points in each), followed by France (+11 pp). Respondents in Malta on the other hand are less likely to consider the euro a good thing for the EU (-5pp). Q1.2 Generally speaking, do you think that...? Having the euro is a good or a bad thing for the EU (%) A good thing 2017-2016 A bad thing 2017-2016 Can t decide (SPONTANEOUS) 2017-2016 Don't know EURO AREA 74 7 16 5 5 1 5 BE 69 8 20 10 8 4 3 DE 79 9 14 5 4 2 3 EE 76 1 5 = 11 2 8 IE 86 4 10 = 2 2 2 EL 69 4 17 3 6 = 8 ES 80 6 9 3 2 2 9 FR 75 11 16 11 4 1 5 IT 62 4 25 1 9 2 4 CY 62 12 19 11 11 1 8 LV 70 3 8 4 10 3 12 LT 71 2 8 2 10 1 11 LU 86 5 12 2 1 2 1 MT 71 5 7 1 7 1 15 NL 74 6 18 6 4 = 4 AT 73 1 15 3 7 2 5 PT 76 12 10 6 8 3 6 SI 79 3 10 2 6 2 5 SK 79 5 9 2 7 1 5 FI 75 5 9 6 10 2 6 11

Socio-demographic and key variable analysis Differences in attitudes between socio-demographic groups across the whole sample reflect those seen for the previous measure (whether the euro is good for their country). Hence, respondents who think that the euro is a good thing for the EU are more likely to be: Men (77%), compared with women (71%); Aged 15-24 (84%), compared with 72%-74% across the three older age bands; Those who completed their full-time education aged 20 or over (80%), compared with those who finished aged 16-19 (70%) and those who finished aged 15 or under (56%);People who are not manual workers, particularly employees (79%compared with manual workers 60%); Again, people who have positive attitudes towards the euro on other measures. Q1.2 Generally speaking, do you think that...? Having the euro is a good or a bad thing for the EU (% - EURO AREA) A good thing A bad thing EURO AREA 74 16 Gender Man 77 15 Woman 71 16 Age 15-24 84 9 25-39 74 19 40-54 72 19 55 + 72 14 Education (End of) 15-56 22 16-19 70 19 20+ 80 13 Still studying 86 8 Respondent occupation scale Self-employed 74 18 Employee 79 15 Manual workers 60 29 Not working 72 15 Having the euro for the country A good thing 93 4 A bad thing 35 49 Travelling is easier/less costly Yes 85 9 No 62 27 Banking charges have been reduced Yes 84 11 No 68 23 3 The euro and European identity 12

Respondents were asked whether or not the euro made them personally feel more European than before 8. Seven in ten respondents say that the euro has not changed their feeling of being European Just over a quarter of respondents (27%) say that the euro makes them feel more European than before. However, for the large majority seven in ten respondents (70%) the euro has not changed their feeling of being European. Since 2016 there has been a small increase in the proportion of respondents who say that the euro makes them feel more European than before (+3 percentage points); and a small decline in the proportion saying that the euro has not changed their feeling of being European (-4 pp). Looking at the longer-term picture, just over one in five respondents said that the euro made them feel more European between 2007 and 2010. Since then, the proportion has remained relatively stable at around a quarter. The current proportion (27%) is the highest in the series. Q2 Does the euro make you personally feel more European than before or would you say that your feeling of being European has not changed? (% - EURO AREA) 90% 80% 77 77 76 77 70% 73 74 74 74 72 74 70 NOTHING HAS CHANGED 60% 50% 40% 30% 22 22 23 22 26 24 24 24 26 24 27 YES, MORE EUROPEAN 20% 10% 1 1 1 1 1 2 2 2 2 2 3 DON'T KNOW 0% 09/2007 (EU13) 09/2008 (EU15) 09/2009 (EU16) 09/2010 (EU16) 11/2011 (EU17) 10/2012 (EU17) 10/2013 (EU17) 10/2014 (EU18) 10/2015 (EU19) 10/2016 (EU19) 10/2017 (EU19) 8 Q2 Does the euro make you personally feel more European than before or would you say that your feeling of being European has not changed? (ONE ANSWER ONLY) 13

Focusing on the current national picture, the majority of respondents across all countries of the euro area do not think that the euro has made them feel more European than before. Countries where respondents are most likely to think that the euro does make them feel more European are Malta (43%), Luxembourg (35%) and Austria (34%), followed by Germany and Ireland (both 33%). Respondents are least likely to hold this view in Greece (17%) and the Netherlands (19%). Socio-demographic and key variable analysis Respondents who think that the euro has made them feel more European are more likely to be: Those who completed their full-time education aged 20 or over (34%), compared with those who finished aged 16-19 (22%) and those who finished aged 15 or under (15%); People who live in large towns (31%), particularly when compared with those living in rural areas (24%); People who are not manual workers, particularly employees (31% compared with manual workers 21%). As has been earlier, people who are favourable towards the euro on other measures are also more likely than others to say that the euro has made them feel more European: People who think that having the euro is good for the country (36%), compared with those who say that the euro is bad for the country (9%); People who think that having the euro is good for the EU (33%), compared with those who say that the euro is bad for the EU (9%); People who think that the euro has made travelling abroad easier and less costly (36%), compared with those who do not (17%); People who think that the euro has reduced banking charges when travelling in different EU countries (38%), compared with those who do not (20%). 14

Q2 Does the euro make you personally feel more European than before or would you say that your feeling of being European has not changed? (% - EURO AREA) Yes, more European Nothing has changed EURO AREA 27 70 Education (End of) 15-15 82 16-19 22 76 20+ 34 63 Still studying 26 67 Subjective urbanisation Rural village 24 73 Small/mid size town 27 70 Large town 31 67 Respondent occupation scale Self-employed 29 68 Employee 31 66 Manual workers 21 77 Not working 24 73 Having the euro for the country A good thing 36 61 A bad thing 9 89 Having the euro for the EU A good thing 33 65 A bad thing 9 88 Travelling is easier/less costly Yes 36 62 No 17 80 Banking charges have been reduced Yes 38 60 No 20 78 15

II. EURO COINS AND BANKNOTES This section of the report examines respondents views on euro coins and banknotes: how easy they find it to distinguish and handle each format when making cash purchases; which, if any, coin denominations cause the greatest difficulty; whether the overall number of coin denominations/values (eight) is the right number; and whether the smallest value coins (1- and 2- cents) should be abolished, with prices rounded to the nearest 5 cents. 1 Distinguishing and handling euro coins Eight in ten respondents find euro coins easy to distinguish and handle Eight in ten respondents (81%) say that it is easy (either very easy or rather easy ) to distinguish and handle euro coins when paying with cash 9. Just over two-fifths (42%) feel it is very easy, with slightly fewer (39%) saying it is rather easy. Among the minority of respondents (18%) who find it difficult to distinguish and handle coins, most say it is rather difficult (15%), with only 3% saying they find it very difficult. Looking at the longer-term picture, the proportion of respondents saying that they find euro coins easy to distinguish and handle gradually increased from around seven in ten in 2003 to just under eight in ten by 2008. This was followed by small declines between 2008 and 2010, with the proportion dropping back to just over seven in ten respondents. In 2011 there was a notable increase (+6 pp) and a return to the level seen in 2008. Since then, the trend has been relatively stable. The current figure of 81% is the highest in the 2003-2017 series. Q3a.2 100% When you pay cash, would you say that it is: very easy, rather easy, rather difficult or very difficult to distinguish and handle.. Euro coins (% - EURO AREA) 90% 80% 71 72 73 74 70% 76 78 75 72 78 78 77 79 79 80 81 TOTAL 'EASY' 60% 50% 40% 30% 26 26 25 24 20% 21 19 23 25 20 21 21 20 19 18 18 TOTAL 'DIFFICULT' 10% 3 2 2 2 3 2 2 3 0% 11/2003 11/2004 10/2005 09/2006 09/2007 09/2008 09/2009 09/2010 11/2011 10/2012 10/2013 10/2014 10/2015 10/2016 (EU12) (EU12) (EU12) (EU12) (EU13) (EU15) (EU16) (EU16) (EU17) (EU17) (EU17) (EU18) (EU19) (EU19) 1 1 1 1 1 1 1 NEITHER EASY NOR DIFFICULT (SPONTANEOUS) 0 DON'T KNOW 10/2017 (EU19) 9 Q3a.2 When you pay cash, would you say that it is: very easy, rather easy, rather difficult or very difficult to distinguish and handle Euro coins (ONE ANSWER ONLY) 16

Focusing on the current national picture, at least two-thirds of respondents in every country think that it is easy to distinguish and handle euro coins. Respondents in Greece and Finland (both 93%), Portugal (92%) and Spain (91%) are most likely to hold this view. Indeed, there are seven euro area countries 10 where the majority of respondents say it is very easy to distinguish and handle euro coins. The countries where respondents are most likely to express difficulties with distinguishing and handling coins are Germany and Lithuania (both 26%) and Estonia (24%). However, in each of these countries, only a small minority of respondents say they find it very difficult. Socio-demographic and key variable analysis Respondents who find it easy to handle and distinguish euro coins are more likely to be: Aged 15-24 (90%) and 25-39 (89%), particularly when compared with those aged 55 or over (73%); Those who finished their full-time education aged 20 or over (90%), particularly when compared with those who finished aged 15 or under (74%); People who think that having the euro is good for the country (83%), compared with those who say that the euro is bad for the country (75%); People who think that having the euro is good for the EU (83%), compared with those who say that the euro is bad for the EU (73%). 10 Cyprus 82%, Malta 75%, Finland 68%, Ireland 66%, Greece and Slovenia both 59% and Spain 51% 17

Q3a.2 When you pay cash, would you say that it is: very easy, rather easy, rather difficult or very difficult to distinguish and handle.. Euro coins (% - EURO AREA) Total 'Easy' Total 'Difficult' EURO AREA 81 18 Age 15-24 90 9 25-39 89 10 40-54 81 18 55 + 73 24 Education (End of) 15-74 23 16-19 78 21 20+ 82 16 Still studying 90 9 Having the euro for the country A good thing 83 16 A bad thing 75 22 Having the euro for the EU A good thing 83 16 A bad thing 73 26 18

a. Difficulties with euro coins Respondents who said that they experience difficulties handling and distinguishing euro coins (18% in the euro area) were asked which coins caused particular difficulties 11. The lowest value coins cause the most difficulties People are much more likely to say that they experience difficulties handling and distinguishing coins of lower value than they do the higher value denominations. Among respondents who said that they experience difficulties handling and distinguishing euro coins, the majority say that they experience difficulties with the 2-cent coin (70%) and the 1-cent coin (61%). Just under half of this group (48%) report difficulties with the 5-cent coin; a little over two-fifths (42%) the 20-cent coin; around a third (34%) the 10-cent coin; and one in four (26%) the 50-cent coin. Much smaller minorities mention difficulties with the 1-euro (13%) and 2-euro coins (12%). These results are very similar to those reported in 2016. Base: respondents with difficulties handling euro coins (N=3,068) 11 Q3b With which of the following euro coins do you have particular difficulties? (MULTIPLE ANSWERS POSSIBLE) 19

There are marked national variations, although caution is advised because of relatively low sample sizes in some countries. It is also worth noting that when interpreting these results that, while 1-cent and 2-cent coins are legal tender in all euro area countries, there are various forms of national legislation that enforce or encourage the rounding of euro coins to 5 cents in Finland, the Netherlands, Belgium and Ireland 12. At least six in ten respondents express difficulties with the 1-cent coin in 15 countries. Across the euro area, the proportion of respondents mentioning difficulties ranges from a high of 89% in Slovakia to lows of 14% in Finland and 18% in the Netherlands. At least two-thirds of respondents express difficulties with the 2-cent coin in 15 countries. Across the euro area, respondents in Slovakia (86%) are again the most likely to mention difficulties, and those in Finland (15%) and the Netherlands (21%) the least likely to do so; There are eight countries where the majority of respondents express difficulties with the 5-cent coin, with this view most widespread in Ireland (62%), Latvia (61%) and Lithuania (60%). Respondents are again least likely to say they have difficulties in the Netherlands (19%) and Finland (22%). In almost all countries of the euro area (17), only a minority of respondents express difficulties with the 10-cent coin, with the smallest minorities seen in Portugal (20%) and Slovenia (22%). The two exceptions, where around half of respondents say they have difficulties with this coin are the Netherlands (51%) and Ireland (50%). There are only four countries where the majority of respondents report that they have difficulties with the 20-cent coin: the Netherlands (77%), Finland (61%), Malta (56%) and Germany (53%). Among the 15 remaining countries of the euro zone, respondents are least likely to have difficulties in Slovakia (19%) and Slovenia (22%); Less than one in four respondents report difficulties with the 50-cent coin in ten countries, with the lowest proportions seen in Slovenia (8%) and Slovakia (8%). Finland is the only country where a majority of respondents (57%) express difficulties with the 50-cent coin; Only a minority of respondents in all countries of the euro area say that they have difficulties with the 1-euro coin, with the highest proportion in the Netherlands (38%), followed by Finland (29%). The lowest proportions are seen in Italy (2%), Malta (2%) and Greece (3%); Similarly, only a minority of respondents in countries of the euro zone cite difficulties with the 2-euro coin, ranging from a high of 34% in the Netherlands to a low of 1% in Malta. There are only six countries where more than one in ten respondents say they have difficulties. 12 Although the law only came into force in 2014 in Belgium and in 2015 in Ireland 20

Q3b With which of the following euro coins do you have particular difficulties? (MULTIPLE ANSWERS POSSIBLE) (%) 1-cent euro coin 2-cent euro coin 5-cent euro coin 10-cent euro coin 20-cent euro coin 50-cent euro coin 1-euro coin 2-euro coin Don't know EURO AREA 61 70 48 34 42 26 13 12 1 BE 81 80 49 36 33 16 12 9 4 DE 47 68 49 37 53 34 16 13 1 EE 67 73 53 24 34 36 12 8 3 IE 69 66 62 50 47 38 10 10 1 EL 64 71 52 26 30 30 3 3 2 ES 61 68 33 28 35 17 8 15 3 FR 73 79 58 30 32 19 15 14 0 IT 84 79 48 27 25 15 2 3 1 CY 69 71 47 30 30 23 5 2 0 LV 74 80 61 31 29 20 10 7 1 LT 81 83 60 30 28 22 9 6 2 LU 77 80 58 33 33 18 7 7 4 MT 44 48 28 38 56 33 2 1 8 NL 18 21 19 51 77 46 38 34 1 AT 68 70 42 38 45 25 15 10 1 PT 62 50 37 20 35 26 6 4 9 SI 70 72 45 22 22 8 12 12 7 SK 89 86 59 26 19 8 5 4 2 FI 14 15 22 39 61 57 29 14 5 Highest percentage per country Highest percentage per item Lowest percentage per country Lowest percentage per item Base: respondents with difficulties handling euro coins (N=3,068) 21

Socio-demographic analysis There are few socio-demographic differences in relation to the coins that respondents have difficulties handling and distinguishing. The most notable differences are linked to the 20-cent and 50-cent coins: Younger people (aged 15-39) are less likely than those aged 40 or over to report difficulties: 33% of 15-24 year olds, and 28% of 25-39 year olds, say that they have difficulties with the 20-cent coin, compared with 48% of 40-54 year olds and 43% of those aged 55 plus; 13% of 15-24 year olds, and 19% of 25-39 year olds, say that they have difficulties with the 50-cent coin, compared with 22% of 40-54 year olds and 31% of those aged 55 plus; Manual workers are less likely than the EU average to express difficulties with both the 20-cent coin (29% vs. 42%) and the 50-cent coin (16% vs. 26%). Q3b With which of the following euro coins do you have particular difficulties? (MULTIPLE ANSWERS POSSIBLE) (% - EURO AREA) 10-cent euro coin 20-cent euro coin 50-cent euro coin EURO AREA 34 42 26 Age 15-24 36 33 13 25-39 31 28 19 40-54 39 48 22 55 + 31 43 31 Respondent occupation scale Self-employed 38 49 32 Employee 38 49 26 Manual workers 30 29 16 Not working 31 38 26 Base: respondents with difficulties handling euro coins (N=3,068) 22

b. Satisfaction with the current selection of euro coins Respondents were asked whether they considered there to be too many, not enough or just the right number of euro coins with different values 13. 60% of respondents think the number of euro coins is just right, while around a third think there are too many Three-fifths of respondents (60%) think that the number of different value coins is just right; just over a third (34%) that there are too many coins with different values; and only 3% that there are not enough. Looking at the longer-term picture, there was a broadly upward trend between 2003 (56%) and 2011 (68%) in the proportion of respondents who said that the number of euro coins was just right. Since 2011, there has been a more gradual downward trend in this proportion, with the 2017 figure of 60% the lowest since 2011. Q4a Do you consider that there are too many or, on the contrary, not enough euro coins with different values or do you consider that there are just the right number? (% - EURO AREA) 80% 70% 60% 56 53 58 58 62 64 62 63 68 66 63 63 64 63 60 JUST THE RIGHT NUMBER 50% 40% 38 30% 40 36 36 32 30 31 30 24 26 30 30 29 30 34 TOO MANY 20% 10% 4 5 4 4 5 4 5 5 5 5 4 4 4 4 3 NOT ENOUGH 0% 3 2 2 2 2 2 2 2 3 3 3 3 3 DON'T KNOW 3 3 11/2003 11/2004 10/2005 09/2006 09/2007 09/2008 09/2009 09/2010 11/2011 10/2012 10/2013 10/2014 10/2015 10/2016 10/2017 (EU12) (EU12) (EU12) (EU12) (EU13) (EU15) (EU16) (EU16) (EU17) (EU17) (EU17) (EU18) (EU19) (EU19) (EU19) Views on whether the number of euro coins is right or not vary somewhat between euro area countries, although the majority of respondents in all but two think that the number of euro coins is just right. This view is most widespread in Finland (87%) and Latvia (82%), with at least seven in ten respondents holding this opinion in a further five countries. In the two exception countries: half of respondents think that the number of coins is right in Belgium (50%) while they are 41% in Italy. The broad pattern of responses across countries is similar to the one seen in 2016. The most notable shifts in opinion at country level can be observed in: Italy, where in 2017 41% think there is the right number of coins and 51% think there are too many, compared with 51% of respondents saying there was the right number of coins and 40% thinking there were too many in 2016; Austria: 51% thinking the number is right and 45% thinking there are too many coins in 2017, compared with 56% and 41% respectively in 2016; The Netherlands: 79% thinking the number is right and 14% thinking there are too many, compared with 72% and 18%, respectively, in 2016; 13 Q4a Do you consider that there are too many or, on the contrary, not enough euro coins with different values or do you consider that there are just the right number? (ONE ANSWER ONLY) 23

Ireland: 71% thinking the number is right and 25% thinking there are too many, compared with 65% and 30% in 2016; Latvia: 82% thinking the number is right and 13% thinking there are too many, compared with 77% and 18% in 2016. Q4a Do you consider that there are too many or, on the contrary, not enough euro coins with different values or do you consider that there are just the right number? (%) Too many 2017-2016 Not enough 2017-2016 Just the right number 2017-2016 Don't know EURO AREA 34 4 3 1 60 3 3 BE 46 3 3 = 50 5 1 DE 34 5 3 1 60 4 3 EE 34 2 2 1 58 2 6 IE 25 5 3 = 71 6 1 EL 25 1 8 1 62 1 5 ES 24 3 4 1 67 5 5 FR 32 1 2 1 65 3 1 IT 51 11 4 = 41 10 4 CY 39 1 2 1 56 3 3 LV 13 5 2 1 82 5 3 LT 10 = 3 1 78 1 9 LU 35 1 2 1 62 1 1 MT 27 3 3 1 64 2 6 NL 14 4 4 2 79 7 3 AT 45 4 2 = 51 5 2 PT 19 = 5 1 72 1 4 SI 20 4 3 1 74 5 3 SK 34 1 3 2 54 2 9 FI 7 1 4 2 87 2 2 Socio-demographic analysis There are generally very small differences between socio-demographic and key variable groups. The most notable difference is in terms of age, with the 15-24 year olds (65%) somewhat more likely than those aged 40 or over (58%) to think that there are just the right number of euro coins with different values. 24

c. Attitudes towards the abolition of 1 and 2-cent coins Respondents were asked whether they were in favour of abolishing the smallest denomination 1- and 2-euro cent coins, and applying mandatory rounding up or down to the nearest 5 cents 14. Just under two-thirds of respondents are in favour of abolishing 1-cent and 2-cent euro coins Although the majority of respondents (60%) say that the number of euro coins with different values is just right (reported in the previous section), when prompted with the idea of abolishing 1-cent and 2-cent coins, nearly two-thirds of respondents (64%) say that they are in favour of abolishing these lowest denomination coins, with prices rounded to the nearest 5 cents. A third (33%) are not in favour of abolishing these coins. These results are broadly similar to those reported in 2016, with changes of no more than three percentage points. Q5 Are you in favour of abolishing 1- and 2 euro cent coins in the Euro area and applying mandatory up- and down-rounding of the final sum of purchase in shops and supermarkets (i.e. prices can still be set at any cent amount but the final sum of purchase is rounded at the tills to 0 or 5 cent, depending on whether the sum is closer to 0 or to 5)? (% - EURO AREA) Don't know 3 (+1) No 33 (-3) Yes 64 (+2) ( - October 2016) 14 Q5 Are you in favour of abolishing 1- and 2 euro cent coins in the Euro area and applying mandatory up- and down-rounding of the final sum of purchase in shops and super-markets (i.e. prices can still be set at any cent amount but the final sum of purchase is rounded at the tills to 0 or 5 cent, depending on whether the sum is closer to 0 or to 5)? (ONE ANSWER ONLY) 25

Focusing on the national picture in 2017, the majority of respondents in all but two euro area countries say that they are in favour of abolishing the 1-cent and 2-cent coins. This view is widespread in all countries where there is active legislation enforcing or encouraging retailers to round prices: Finland (86%), Netherlands (74%), Ireland (72%) and Belgium (69%). Respondents are also likely to take this view in Italy (75%) and Slovakia (74%). This view is least likely to be held by respondents in Latvia (45%) and Portugal (46%). Socio-demographic and key variable analysis There are very few differences between socio-demographic and key variable groups. Men (67%) are somewhat more likely than women (61%) to be in favour of abolishing the two smallest value coins. Those who finished their full-time education aged 16-19 (70%) are more likely than those who finished their education earlier or later, and those still studying (59%-64%), to favour their abolition. 26

2 Distinguishing and handling euro banknotes This section focuses on how easy they find it to distinguish and handle euro banknotes. Almost all respondents find euro banknotes easy to distinguish and handle Respondents are more likely to find it easy to distinguish and handle euro banknotes than euro coins. More than nine in ten respondents (94%) say that it is easy (either very easy or rather easy ) to distinguish and handle euro banknotes when paying with cash 15. Just under three-fifths (59%) find it very easy, with just over a third (35%) saying it is rather easy. Only a very small minority of respondents (3%) find it difficult to distinguish and handle euro banknotes. The results are very similar to those seen in 2016. Q3a.1 100% When you pay cash, would you say that it is: very easy, rather easy, rather difficult or very difficult to distinguish and handle.. Euro bank notes (% - EURO AREA) 90% 92 93 93 94 94 95 80% 91 90 95 94 94 94 94 94 94 TOTAL 'EASY' 70% 60% 50% 40% 30% 20% 10% 6 5 5 4 4 4 0% 11/2003 (EU12) 11/2004 (EU12) 10/2005 (EU12) 09/2006 (EU12) 09/2007 (EU13) 09/2008 (EU15) 7 6 09/2009 (EU16) 09/2010 (EU16) 4 4 4 4 4 4 3 2 1 11/2011 (EU17) 10/2012 (EU17) 10/2013 (EU17) 10/2014 (EU18) 10/2015 (EU19) 10/2016 (EU19) 10/2017 (EU19) TOTAL 'DIFFICULT' NEITHER EASY NOR DIFFICULT (SPONTANEOUS) DON'T KNOW 15 Q3a.1 When you pay cash, would you say that it is: very easy, rather easy, rather difficult or very difficult to distinguish and handle Euro bank notes (ONE ANSWER ONLY) 27

Focusing on the current national picture, in almost all euro area countries (17), at least nine in ten respondents think that it is easy to distinguish and handle euro banknotes. More than seven in ten respondents in five countries say it is very easy to distinguish and handle euro banknotes, with those in Cyprus (91%) most likely to do so 16. Respondents are least likely to think that euro banknotes are very easy to distinguish in Portugal (19%). 16 The four other countries are Malta 86%, Finland 79%, Ireland 74% and Slovenia 72%. 28

Socio-demographic and key variable analysis There are not many notable differences between socio-demographic and key variable groups. Groups who are more likely to find euro banknotes easy to distinguish and handle are: 15-24 year olds, almost all of whom (98%) say they find euro banknotes easy to distinguish and handle, compared with just over nine in ten people aged 55 or over (92%); Linked to the above, almost all people who are still studying (98%), and the vast majority of those who finished their full-time education aged 20 or over (96%), compared with nine in ten (90%) of those who finished their full-time education aged 15 or under; Almost everybody who thinks that having the euro is good for the country (97%), compared with nine in ten of those who say that it is bad for the country (90%); Almost everybody who thinks that having the euro is good for the EU (96%), compared with nine in ten of those who think it is bad for the EU (90%). Q3a.1 When you pay cash, would you say that it is: very easy, rather easy, rather difficult or very difficult to distinguish and handle.. Euro bank notes (% - EURO AREA) Very easy Rather easy Rather difficult Very difficult Total 'Easy' Total 'Difficult' EURO AREA 59 35 2 1 94 3 Age 15-24 68 30 1 0 98 1 25-39 63 32 2 1 95 3 40-54 61 33 2 1 94 3 55 + 52 40 3 2 92 5 Education (End of) 15-44 46 4 2 90 6 16-19 57 37 3 1 94 4 20+ 64 32 2 0 96 2 Still studying 62 36 0 1 98 1 Having the euro for the country A good thing 64 33 1 0 97 1 A bad thing 51 39 4 3 90 7 29

III. THE IMPACT OF THE EURO ON PRICES AND OTHER MACROECONOMIC ASSESSMENTS This section of the report begins with a focus on Latvia and Lithuania (the two most recent Member States to have adopted the euro currency) and the perceived impact the euro had on prices during the currency changeover period. It then examines the whole of the euro area in terms of the perceived impact the euro has had. 1 The impact of the euro on prices a. Prices change in the changeover period in Latvia and Lithuania On 1 January 2014, Latvia joined the euro area, becoming the 18th country within the 28 EU Member States to adopt the euro as its currency; followed by Lithuania which adopted the euro currency on 1 January 2015. Respondents were asked whether they thought that there was an impact on prices during the changeover period when the coins and banknotes were physically introduced 17. More than three-quarters of respondents in Latvia, and almost all respondents in Lithuania, think that there were price increases during the changeover period More than three-quarters (77%) of respondents in Latvia think that there were price increases during the changeover period. Just under two-fifths (38%) say that all prices were increased, with a similar proportion (39%) thinking that prices increased only in some categories. Just under a fifth of respondents (18%) think prices stayed more or less the same, with a very small minority (2%) saying prices decreased in some categories. Q7 When the euro coins and banknotes were physically introduced in (COUNTRY), do you personally think that the euro introduction had any impact on prices during this changeover period? (% - LV) 90% 80% 73 70% 71 72 77 TOTAL 'PRICES INCREASED' 60% 50% 40% 30% 21 20% 23 23 18 NO, PRICES MORE OR LESS STAYED THE SAME 10% 4 0% 10/2014 (EU18) 2 2 3 DON'T KNOW 10/2015 (EU19) 10/2016 (EU19) 10/2017 (EU19) Base: all respondents in Latvia (N=1,001) 17 Q7 When the euro coins and banknotes were physically introduced in [COUNTRY], do you personally think that the euro introduction had any impact on prices during this changeover period? (ONE ANSWER ONLY) 30

In Lithuania, almost all respondents (94%) think that there were price increases during the changeover period. Two-thirds (67%) say that all prices were increased, with just over a quarter (27%) thinking that prices increased in some categories. Only one in twenty respondents (5%) think prices stayed more or less the same, with very few (<0.5%) thinking prices decreased in some categories. Q7 When the euro coins and banknotes were physically introduced in (COUNTRY), do you personally think that the euro introduction had any impact on prices during this changeover period? (% - LT) 100% 90% 87 80% 95 94 TOTAL 'PRICES INCREASED' 70% 60% 50% 40% 30% 20% 9 10% 3 0% 10/2015 (EU19) 3 10/2016 (EU19) 5 1 10/2017 (EU19) NO, PRICES MORE OR LESS STAYED THE SAME DON'T KNOW Base: all respondents in Lithuania (N=1,001) 31

b. The impact of the euro on travelling abroad All respondents in the euro area were asked about the impact of the euro on travelling abroad, in terms whether it has made travelling easier and less costly 18. Half of respondents think the euro has made travelling easier and less costly Half of respondents (50%) say that the euro has made travelling easier and less costly, with more than a third (36%) saying it has not. A sizeable share of respondents (14%) are not able to say whether or not the euro has made travelling easier and less costly. Between 2010 and 2017, the proportion of respondents reporting that the euro has made travelling easier and less costly has remained relatively stable, at around half, with the lowest level recorded in 2016 (47%). The current figure of 50% is just below the highest level (51%) in the series, seen in 2015. Q8.1 Do you think that the euro...? Has made travelling easier and less costly (% - EURO AREA) 70% 60% 50% 48 50 48 48 50 51 47 50 YES 40% 30% 37 37 40 38 35 34 40 NO 36 20% 15 13 12 14 15 15 13 14 DON'T KNOW 10% 0% 09/2010 (EU16) 11/2011 (EU17) 10/2012 (EU17) 10/2013 (EU17) 10/2014 (EU18) 10/2015 (EU19) 10/2016 (EU19) 10/2017 (EU19) Looking at the national picture in 2017, there are 12 euro area countries in which the majority of respondents think that the euro has made travelling easier and less costly, with this view most widespread in Ireland (89%), Latvia (69%), Estonia (67%) and Finland and Germany (both 63%). It is least likely to be a view held in Italy (33%), in Slovenia (40%) and in Slovakia (41%). 18 Q8.1 Do you think that the euro...? Has made travelling easier and less costly (ONE ANSWER ONLY) 32

Italy is the only country where the majority of respondents (52%) say that the euro has not made travelling easier and less costly. Respondents were also asked if they thought that the euro has reduced banking charges when travelling in different EU countries (e.g. when withdrawing money from an ATM) 19. Opinion is evenly split between those who think the euro has reduced banking charges when travelling abroad and those who think it has not Opinion is evenly divided on whether the euro has reduced banking charges when travelling in different EU countries. Just over a third (35%) of respondents say charges have reduced, with a similar proportion (36%) saying charges have not reduced. Three in ten respondents (29%) are unable to express a view on this. Looking at the longer-term picture, the proportion of respondents who say that the euro has reduced banking charges has remained stable, at around three in ten, between 2010 and 2015. Since then it has increased slightly, both in 2016 and 2017 to the current level of 35%, with the proportion unable to express a view decreasing somewhat over this period. 19 Q8.2 Do you think that the euro...? Has reduced banking charges when travelling in different EU countries (e.g. when withdrawing money from an ATM) (ONE ANSWER ONLY) 33

Q8.2 Do you think that the euro...? Has reduced banking charges when travelling in different EU countries (e.g. when withdrawing money from an ATM) (% - EURO AREA) 50% 40% 37 34 30% 29 35 34 31 36 36 35 35 29 29 36 36 34 34 30 30 38 32 30 36 NO YES 35 DON'T KNOW 29 20% 10% 0% 09/2010 (EU16) 11/2011 (EU17) 10/2012 (EU17) 10/2013 (EU17) 10/2014 (EU18) 10/2015 (EU19) 10/2016 (EU19) 10/2017 (EU19) Looking at the national picture in 2017, there are only three countries in which the majority of respondents think that the euro has reduced banking charges when travelling in other EU countries: Malta (64%), Ireland (62%) and the Netherlands (52%). It is least likely to be the view held in Estonia and Lithuania (both 23%). There is even more marked national variation in the proportion of respondents unable to say whether the euro has reduced banking charges, with those in Estonia (62%) and Lithuania (50%) particularly likely to say that they don t know, compared with a low of 11% of respondents in Luxembourg. 34

Socio-demographic and key variable analysis This section focuses on the last two measures discussed in the report (the perceived impact of the euro on travelling and on banking charges when in other EU countries), looking at differences between socio-demographic and key variable groups. The most notable differences are: Men are more likely than women to think that the euro has made travelling easier and cheaper (54% compared with 47%), and to think that the euro has reduced banking charges when travelling in other EU countries (40% vs. 30% respectively); 15-24 year olds are more likely than other age groups to think that the euro has made travelling easier and cheaper (61% vs. 48%-49% across the three age bands), and to say that the euro has reduced banking charges (48% vs. 28%-40%); Linked to the above, those still studying (61%) and those who finished their full-time education aged 20 or over (55%) are more likely to think that the euro has made travelling easier and cheaper, particularly when compared with those who finished their full-time education aged 15 or under (35%). Similarly, those still studying (50%) and those who finished their full-time education aged 20 or over (42%) are more likely than those who finished aged 15 or under (19%) to think that the euro has reduced banking charges; Employees (42%) are more likely than other groups, particularly manual workers (27%), to think the euro has reduced banking charges; employees, along with self-employed people (both 53%), are also more likely than manual workers (43%) to think that the euro has made travelling easier and cheaper; People who think that having the euro is good for the country are more likely than those who think it is bad for the country, to say that the euro has made travelling easier and less costly (62% vs. 27%), and that the euro has reduced banking charges (42% vs. 22%); People who think that having the euro is good for the EU are more likely than those who think it is bad, to say the euro has made travelling easier and less costly (58% vs. 28%), and that the euro has reduced banking charges (40% vs. 23%). 35

Q8.1 Do you think that the euro...? Has made travelling easier and less costly (% - EURO AREA) Yes No Don't know EURO AREA 50 36 14 Gender Man 54 34 12 Woman 47 38 15 Age 15-24 61 26 13 25-39 49 40 11 40-54 48 41 11 55 + 49 34 17 Education (End of) 15-35 42 23 16-19 47 39 14 20+ 55 34 11 Still studying 61 27 12 Respondent occupation scale Self-employed 53 38 9 Employee 53 37 10 Manual workers 43 46 11 Not working 48 35 17 Having the euro for the country A good thing 62 26 12 A bad thing 27 60 13 Having the euro for the EU A good thing 58 30 12 A bad thing 28 62 10 36

Q8.2 Do you think that the euro...? Has reduced banking charges when travelling in different EU countries (e.g. when withdrawing money from an ATM) (% - EURO AREA) Yes No Don't know EURO AREA 35 36 29 Gender Man 40 35 25 Woman 30 37 33 Age 15-24 48 27 25 25-39 40 37 23 40-54 34 40 26 55 + 28 35 37 Education (End of) 15-19 34 47 16-19 28 39 33 20+ 42 35 23 Still studying 50 26 24 Respondent occupation scale Self-employed 37 36 27 Employee 42 36 22 Manual workers 27 46 27 Not working 30 34 36 Having the euro for the country A good thing 42 31 27 A bad thing 22 48 30 Having the euro for the EU A good thing 40 33 27 A bad thing 23 52 25 37

c. Converting prices in euro to old national currencies Respondents were asked whether, when they are buying things today, they tend to convert prices from euro to their old national currency 20. More than three-fifths of respondents do not convert prices into their old national currency The majority of respondents (63%) say that they do not convert euro to their former national currency when they are buying things. Just fewer than one in five respondents (18%) say they convert euro to their former currency when making common purchases, such as day-to-day shopping, and around one in seven (15%) say they do so when making exceptional purchases, such as the purchase of a car or a house. Q6 Today, when you are buying things, do you tend to convert from the price in euro to the (OLD NATIONAL CURRENCY) when it concerns: (% - EURO AREA) It depends (SPONTANEOUS) 3 You don't remember the value of the previous currency (SPONTANEOUS) 1 Yes, for common purchases such as day-to-day shopping 18 No, not at all 63 Yes, for exceptional purchases such as the purchase of a car or a house 15 20 Q6 Today, when you are buying things, do you tend to convert from the price in euro to the [OLD NATIONAL CURRENCY] when it concerns: 38

Focusing on the national picture in 2017, it is perhaps not surprising that respondents in Lithuania (the most recent Member State to adopt the euro) are the most likely to say that they convert prices from euro to their old currency, with half (50%) compared with the euro area average of 33% saying that they do this. Respondents are also particularly likely to say that they convert prices to their former currency in Belgium (44%) and Austria (41%) Respondents from Ireland (9%), Slovenia (15%), Finland and Estonia (both 16%), Cyprus (18%) and, despite the relatively recent adoption of the euro currency, Latvia (also 18%) are least likely to convert from euro to their old national currency. In terms of the type of purchase: For common purchases (such as day-to-day shopping), the proportion of respondents saying that they convert prices from euro to old currency ranges from a high of 33% in Lithuania (notably higher than levels reported elsewhere) to a low of 4% in Finland. For exceptional purchases (such as the purchase of a car or a house), proportions range from a high of 23% of respondents in Belgium and Austria to just 4% of respondents in Finland. Socio-demographic and key variable analysis There are not many notable differences between socio-demographic and key variable groups. The main pattern can be found when looking at age, where respondents aged 40 or over are more likely to convert the price in euro to their old national currency (21%-22%) than those aged 15-24 (4%) and 25-39 (13%). Likewise, respondents aged 25 or over are more likely to do the same for exceptional purchases (16%-17%) than those aged 15-24 (5%). 39

For common purchases only, respondents who are more likely to convert euro prices to their former currency are: Those who finished their full-time education aged 15 or under (27%) and aged 16-19 (23%), compared with those who finished their full-time education aged 20 or over (14%); Manual workers (27%), particularly when compared with employees (14%) and the selfemployed (15%); People who think that having the euro is bad for the country (35%), compared with those who say that the euro is good for the country (10%); People who think that having the euro is bad for the EU (34%), compared with those who say that the euro is good for the EU (13%); People who do not think the euro has made travelling easier and less costly (25%), compared with those who think the euro has made travelling easier and less costly (12%); People who do not think that the euro has reduced banking charges when travelling in other EU countries (21%), compared with those who think banking charges have reduced (12%). Q6 Today, when you are buying things, do you tend to convert from the price in euro to the (OLD NATIONAL CURRENCY) when it concerns: (% - EURO AREA) Yes, for common purchases such as day-to-day shopping Yes, for exceptional purchases such as the purchase of a car or a house No, not at all EURO AREA 18 15 63 Age 15-24 4 5 81 25-39 13 16 68 40-54 21 17 58 55 + 22 16 58 Education (End of) 15-27 13 55 16-19 23 17 56 20+ 14 16 67 Still studying 4 4 82 Respondent occupation scale Self-employed 15 14 69 Employee 14 17 66 Manual workers 27 15 53 Not working 20 14 62 Having the euro for the country A good thing 10 15 71 A bad thing 35 15 45 Having the euro for the EU A good thing 13 15 68 A bad thing 34 15 48 Travelling is easier/less costly Yes 12 15 70 No 25 15 56 Banking charges have been reduced Yes 12 15 69 No 21 15 60 40

2 Economic policy coordination in the euro area Respondents were asked whether they thought that the degree to which economic policy, including budgetary policies, is coordinated in the euro area is appropriate, or whether there should be more or less coordination among euro area governments 21. Two-thirds of respondents think there should be more coordination of economic policy Two thirds of respondents (67%) say that there should be more coordination on economic policy among euro area governments, while one in eight respondents (12%) think that the degree of policy coordination is appropriate and 7% say that there should be less coordination. One in seven respondents (14%) are unable to express an opinion. Since 2016, there has been no change in the proportion thinking more coordination is needed, a small drop (-3 percentage points) in the proportion thinking less coordination is required, and a corresponding increase (+3 pp) in the proportion saying that there is the appropriate degree of policy coordination among euro area governments. Looking at the longer-term picture, the proportion of respondents who say that there should be more coordination on economic policy among euro area governments has gradually decreased, from three-quarters of respondents (76%) in 2011 to two-thirds of respondents in 2016 and 2017 (67% in each year). Q9 Do you think that the degree to which economic policy, including budgetary policies, is coordinated in the euro area is appropriate? Should there be more or less coordination among euro-area governments? (% - EURO AREA) 90% 80% 76 70% 60% 74 72 69 70 67 67 THERE SHOULD BE MORE COORDINATION 50% 40% 30% 20% 13 14 14 10 11 11 12 DON'T KNOW 10 12 APPROPRIATE 10% THERE SHOULD BE LESS COORDINATION 9 9 6 7 8 8 7 0% 11/2011 (EU17) 10/2012 (EU17) 10/2013 (EU17) 10/2014 (EU18) 10/2015 (EU19) 10/2016 (EU19) 10/2017 (EU19) 21 Q9 Do you think that the degree to which economic policy, including budgetary policies, is coordinated in the euro area is appropriate? Should there be more or less coordination among euro area governments? (ONE ANSWER ONLY) 41

Looking at the national picture in 2017, there are 13 countries where the majority of respondents say that there should be more economic policy coordination among euro area governments, with this view most widespread in Greece (80%), Italy (77%) and Portugal (75%). It is least likely to be a view held in Estonia (34%), Finland (35%), Ireland (42%), Lithuania (43%) and Malta (46%). The proportion of respondents thinking that there should be less economic policy coordination among governments ranges from a high of 18% of respondents in Finland, to a low of 1% in Spain. Countries of the euro area in which respondents are most likely to say that there is the appropriate level of coordination on economic policy among governments are Ireland and Finland (both 28%), Malta (24%), the Netherlands (23%) and Austria (21%). 42

Comparing the results with those from 2016, the proportion of respondents who agree that there is the appropriate level of coordination on economic policy among euro area governments has increased in 16 countries, with the largest increase observed in Ireland (+10 percentage points), followed by the Netherlands and Cyprus (+6 pp in each). In the three remaining countries, respondents are now only slightly less likely than they were in 2016 to agree that there is the appropriate level of economic policy coordination among euro area governments: Lithuania (-2 pp), Slovakia (-1 pp) and Latvia (-1 pp). Socio-demographic and key variable analysis Again, there are not many notable differences between socio-demographic and key variable groups. Respondents who think that there should be more coordination on economic policy among euro area governments are more likely to be: Men (70%), compared with women (64%); Respondents aged 25 or over (66%-69% across the three age bands), compared with the 15-24 year olds (55%); Those who finished their full-time education aged 20 or more (72%), particularly when compared with those who finished their full-time education aged 15 or under (60%). Respondents who think that there is the appropriate level of economic policy coordination are more likely to be: Aged 15-24 (24%), compared with those aged 25 or over (9%-12%); Linked to the above, those who are still studying (22%); 43

People who think that having the euro is good for the country (15%), compared with those who say that the euro is bad for the country (7%); People who think that having the euro is good for the EU (14%), compared with those who say that the euro is bad for the EU (6%); People who think that the euro has made travelling abroad easier and less costly (15%), compared with those who do not (9%). Q9 Do you think that the degree to which economic policy, including budgetary policies, is coordinated in the euro area is appropriate? Should there be more or less coordination among euro-area governments? (% - EURO AREA) Appropriate There should be more coordination There should be less coordination EURO AREA 12 67 7 Gender Man 12 70 8 Woman 12 64 7 Age 15-24 24 55 8 25-39 12 66 9 40-54 11 69 8 55 + 9 69 7 Education (End of) 15-9 60 7 16-19 12 65 8 20+ 11 72 7 Still studying 22 57 7 Having the euro for the country A good thing 15 68 6 A bad thing 7 65 12 Having the euro for the EU A good thing 14 69 6 A bad thing 6 65 16 Travelling is easier/less costly Yes 15 68 6 No 9 68 10 44

Respondents were then asked whether they thought that the EU economic policy coordination among euro area countries has been strengthened, weakened or remained unchanged in recent years 22. Less than one in four respondents think economic policy coordination has been strengthened in recent years, with around one in three saying it has been weakened Respondents are most likely to say that EU economic policy coordination has been weakened in recent years (34%). Just under one in four respondents (23%) say EU policy coordination has been strengthened, with a slightly larger proportion (26%) thinking EU policy coordination has not changed in recent years. A notable proportion of respondents (17%) are unable to express an opinion. The proportion of respondents thinking that EU economic policy coordination has been weakened in recent years increased between 2015 and 2016, from 38% to 46%, before dropping back again to 34% in 2017. Q10 Do you think the EU economic policy coordination among euro area countries in recent years (% - EURO AREA) 60% 50% 46 40% 38 30% 24 22 24 20% 18 14 14 10% 34 HAS BEEN WEAKENED 26 HAS NOT CHANGED HAS BEEN STRENGTHENED 23 DON'T KNOW 17 0% 10/2015 (EU19) 10/2016 (EU19) 10/2017 (EU19) 22 Q10 Do you think the EU economic policy coordination among euro area countries in recent years (ONE ANSWER ONLY) 45

Focusing on the national picture in 2017, minorities of respondents across all euro area countries think that EU economic policy coordination has been strengthened in recent years, with this view being most widespread in Germany (35%), the Netherlands (34%) and Ireland (32%), and least widespread in Greece (11%), Italy (12%) and Cyprus (12%). The most marked national variation on this measure is linked to the proportion of respondents who think that EU economic policy coordination has been weakened. Countries where respondents are most likely to hold this view are Greece (63%), Portugal (46%), Italy (45%) and Cyprus (43%). Those where this view is least likely to be held are Estonia (14%) and Austria, Germany and Malta (all 18%). The proportion of respondents who are unable to say whether EU economic policy coordination has changed in recent years also shows quite marked national variation, with the highest proportions reported in Estonia (45%), Lithuania (37%) and Malta (35%), and the lowest in Greece (8%). Socio-demographic and key variable analysis The groups who are more likely to think that EU economic policy coordination has been strengthened in recent years are: Those aged 15-24 (29%), particularly when compared with those aged 55 or over (18%); Those who finished their full-time education aged 20 or more (26%), particularly when compared with those who finished their full-time education aged 15 or under (14%); Employees (29%), particularly when compared with manual workers (18%) or those not working (19%); People who think that having the euro is good for the country (28%), compared with those who say having the euro is bad for the country (15%); People who think that having the euro is good for the EU (26%), compared with those who think that the euro is bad for the EU (15%); People who think that the euro has made travelling abroad easier and less costly (28%), compared with those who do not (18%); People who think that the euro has reduced banking charges when travelling in other EU countries (30%), compared with those who do not (21%). 46

Q10 Do you think the EU economic policy coordination among euro area countries in recent years (% - EURO AREA) has not changed...has been strengthened has been weakened EURO AREA 26 23 34 Gender Man 29 25 34 Woman 24 21 34 Age 15-24 26 29 28 25-39 28 26 32 40-54 26 24 35 55 + 26 18 36 Education (End of) 15-24 14 38 16-19 28 20 34 20+ 27 26 34 Still studying 26 31 27 Respondent occupation scale Self-employed 27 23 35 Employee 26 29 32 Manual workers 32 18 33 Not working 26 19 35 Having the euro for the country A good thing 28 28 30 A bad thing 22 15 44 Having the euro for the EU A good thing 28 26 32 A bad thing 24 15 46 Travelling is easier/less costly Yes 28 28 30 No 25 18 42 Banking charges have been reduced Yes 28 30 31 No 27 21 40 47

3 Expectation for this year s inflation rate Respondents were asked whether they expected the inflation rate this year to be higher, lower or the same compared with last year s. 23 Opinion is evenly divided between those who think inflation will be higher and those who think it will remain the same Two-fifths of respondents (40%) expect this year s inflation rate to be higher than last year, with a similar proportion (40%) saying they expect it to remain the same. One in ten respondents (10%) expect this year s inflation rate to be lower than last year s, and a similar proportion (10%) are unable to express a view. Respondents are more pessimistic about the inflation rate than they were in 2016: the proportion that thinks this year s rate will be higher has increased (+4 percentage points), while the proportions that think the rate will be lower or will stay the same have dropped (-2 pp for each). Q13 What is your expectation regarding the inflation rate this year? Compared to last year, will it be: (% - EURO AREA) Don't know 10 (=) Higher 40 (+4) The same 40 (-2) Lower 10 (-2) ( - October 2016) 23 Q13 What is your expectation regarding the inflation rate this year? Compared to last year, will it be: (ONE ANSWER ONLY) 48

Focusing on the national picture in 2017, in most countries a minority of respondents think that this year s inflation rate will be higher than last year s inflation rate. There are four countries where at least half of respondents think this year s rate will be higher: Austria (57%), Estonia (53%), Latvia (51%) and Lithuania (50%). Countries where respondents are least likely to say that the inflation rate this year will be higher are Cyprus (26%) and Portugal (28%). The proportion of respondents who think that this year s inflation rate will be lower than last year s ranges from a high of 18% in Greece to a low of 4% in Latvia. Across all the euro area countries, at least one in four respondents think this year s inflation rate will remain the same as last year s. Luxembourg is the only country where this view is held by the majority of respondents (57%). Socio-demographic and key variable analysis The most notable differences between socio-demographic and key variable groups are: Men are more likely than women to think the inflation rate will be higher (43% vs. 37%); Those aged 40 or over are more likely to think the inflation rate will remain the same, particularly when compared with 15-24 year olds (41%-43% vs. 34%); Those who finished their full-time education aged 15 or under (34%) are less likely than those who finished their full-time education aged 16 or over (41%) to think the inflation rate will remain the same; Those who are self-employed are more likely than others, particularly manual workers, to think the inflation rate will be higher (42% vs. 37%); People who think that having the euro is good for the country are more likely than those who say it is bad for the country to think the inflation rate will remain the same (43% vs. 36%); People who think that having the euro is good for the EU are more likely than those who think that the euro is bad for the EU to think the inflation rate will remain the same (41% vs. 35%) 49

Q13 What is your expectation regarding the inflation rate this year? Compared to last year, will it be: (% - EURO AREA) Higher Lower The same EURO AREA 40 10 40 Gender Man 43 9 40 Woman 37 12 39 Age 15-24 43 12 34 25-39 40 12 37 40-54 38 11 43 55 + 40 8 41 Education (End of) 15-38 11 34 16-19 38 11 41 20+ 41 10 41 Still studying 42 10 35 Respondent occupation scale Self-employed 42 11 39 Employee 40 11 41 Manual workers 37 11 39 Not working 39 10 39 Having the euro for the country A good thing 39 10 43 A bad thing 41 12 36 Having the euro for the EU A good thing 40 10 41 A bad thing 44 11 35 50

IV. ECONOMIC REFORMS AND OTHER SECTORIAL REFORMS TO BOOST GROWTH AND EMPLOYMENT The final chapter of the report examines respondents views in relation to the need for economic reforms; and the importance of introducing reforms in specific public services and utility services to help increase growth and employment 24. 1 Economic reforms in euro area countries The interviewer explained to the respondent that governments in all euro area countries are implementing various economic reforms such as labour market reforms, reforms to pensions, social security, healthcare and education systems, and market reforms to open sectors to competition. The interviewer then read out a series of four statements about such reforms, and asked the respondent to what extent they agreed or disagreed with each. The majority of respondents agree that there is a need for significant reforms to improve economic performance or that there is a need to save more money to prepare public finances for the ageing population Eight in ten respondents (79%) agree that there is a need for significant reforms to improve the performance of the national economy, with around two in five (39%) saying that they totally agree. Three-quarters of respondents (75%) agree that governments need to save more today in order to prepare public finances for the ageing populations, with almost half (48%) saying that they totally agree. Opinion is more evenly divided on whether successful reforms in other euro area countries have facilitated reforms in the respondent s own. Just over two-fifths of respondents (42%) agree, with around one in eight (12%) saying they totally agree. 24 Q11 Governments in all euro area countries are implementing various economic reforms, such as labour market reforms, pension, social security or healthcare reforms, reforms of education systems or market reforms to open sectors to competition. Would you agree or disagree with the following statements related to such reforms? (ONE ANSWER ONLY) 51

The majority of respondents (73%) disagree that the retirement age should be increased to ensure the sustainability of the pension system, with more than half (54%) saying they totally disagree. Just under a quarter of respondents (24%) agree that the retirement age should be increased, but only one in ten (10%) say they totally agree. Opinions on government implementation of these economic reforms vary between countries, with the most marked differences linked to views on whether the retirement age should be increased and whether successful reforms elsewhere in the euro area have enabled reforms in the respondent s own country. 52

Taking each of the four statements in turn: At least two-thirds of respondents in all countries of the euro area agree that there is a need for significant reforms to improve the performance of their economy. This view is most widespread in Lithuania (90%), Italy (88%) and Cyprus and Luxembourg (both 88%). There are seven countries where at least half of respondents totally agree there is a need for significant reforms: Cyprus (70%), Lithuania (61%), Italy and Slovenia (both 56%) and Greece, Malta and Portugal (all 50%). Over two-thirds of respondents across all countries agree that governments need to save more today in order to prepare public finances for the ageing populations, with this view most widespread in Ireland (92%), Malta (90%), Portugal (89%) and Luxembourg (85%). There are seven countries where the majority of respondents totally agree that governments need to save more today to prepare public finances for the ageing populations: Malta (72%), Portugal (69%), Ireland (65%), Spain and Cyprus (both 61%), Lithuania (54%) and Slovenia (51%). 53

There are only six euro area countries where the majority of respondents agree that successful reforms in other euro area countries have facilitated reforms in their own country: Ireland (60%), Luxembourg (59%), Malta (55%), Portugal (54%), Belgium (53%) and the Netherlands (52%). Respondents are particularly likely to totally agree with this view in Malta (29%) and Cyprus (24%), compared with the euro area average of 12%. There are only two countries where the majority of respondents disagree that successful reforms in other euro area countries have facilitated reforms in their own: Greece (59%) and Italy (55%). Only a minority of respondents in all countries of the euro area agree that the retirement age should be increased to ensure the sustainability of the pension system, with this view most widespread in Ireland (44%), Austria, Luxembourg and France (all 36%) and Belgium (33%). The countries where respondents are most likely to say that they disagree that the retirement age should be increased are Latvia (86%) and Italy (85%). There are seven countries, including Latvia and Italy, where at least six in ten respondents totally disagree that the retirement age should be increased to uphold the pension system: Cyprus (71%), Italy (68%), Greece and Malta (both 65%), Latvia (63%) and Spain and Portugal (both 60%). 54

Socio-demographic and key variable analysis The most notable differences in opinion between socio-demographic and key variable groups in relation to each statement concerning government implementation of economic reforms are as follows. Those who are particularly likely to agree that successful reforms in other euro area countries have facilitated reforms in their own are: Men (46%), compared with women (40%); Those aged 15-24 (57%), compared with those aged 25 or over (40%-43%); Linked to the above, those who are still studying (58%), compared with the sub-groups who have left education (37%-42%). Q11.2 Governments in all euro-area countries are implementing various economic reforms, such as labour market reforms, pension, social security or healthcare reforms, reforms of education systems or market reforms to open sectors to competition. Would you agree or disagree with the following statements related to such reforms? I think successful reforms in other euro-area countries have facilitated reforms in our country (% - EURO AREA) Total 'Agree' Total 'Disagree' EURO AREA 42 46 Gender Man 46 45 Woman 40 45 Age 15-24 57 34 25-39 43 48 40-54 40 50 55 + 40 44 Education (End of) 15-37 43 16-19 41 47 20+ 42 48 Still studying 58 33 Respondent occupation scale Self-employed 43 47 Employee 44 47 Manual workers 37 50 Not working 42 43 Having the euro for the country A good thing 50 39 A bad thing 29 60 Having the euro for the EU A good thing 48 42 A bad thing 28 63 55

Those who are particularly likely to agree that the retirement age should be increased to ensure sustainability of the pension system are: Men (28%), compared with women (21%); Those aged 55 or over (28%), particularly when compared with those aged 40-54 (20%); Those who finished their full-time education aged 20 or more (29%), compared with those who finished their full-time education at an earlier age (19%-20%); The self-employed (29%) and those who are not working (27%), particularly when compared with manual workers (14%). People who agree that the euro has been good for the country, along with those who agree that the euro has been good for the EU, are more likely than those who think that the euro has been bad, to agree with each of the four statements. 56

Q11.4 Governments in all euro-area countries are implementing various economic reforms, such as labour market reforms, pension, social security or healthcare reforms, reforms of education systems or market reforms to open sectors to competition. Would you agree or disagree with the following statements related to such reforms? The retirement age should be increased to ensure sustainability of the pension system (% - EURO AREA) Total 'Agree' Total 'Disagree' EURO AREA 24 73 Gender Man 28 70 Woman 21 76 Age 15-24 24 74 25-39 23 75 40-54 20 78 55 + 28 68 Education (End of) 15-19 76 16-19 20 77 20+ 29 69 Still studying 26 73 Respondent occupation scale Self-employed 29 69 Employee 21 77 Manual workers 14 85 Not working 27 69 Having the euro for the country A good thing 30 68 A bad thing 16 82 Having the euro for the EU A good thing 27 70 A bad thing 17 82 57

2 Evaluation of sectorial reforms Respondents were asked how important it is for their government to introduce reforms in six public services and the utility sector to help boost growth and employment 25. Most respondents think that it is important for their government to introduce reforms in each of the six public service sectors and the utility sector to boost growth and employment Across the seven different specific sectors asked about, the majority of respondents think that it is important for their government to introduce reforms to boost growth and employment. Around nine in ten respondents hold this view in relation to: the health system and the education systems (both 91%), the labour market (90%) and the pension system (89%). Respondents are somewhat less likely to think it is important for the government to introduce reforms in the areas of social security (87%) and tax (82%). They are least likely to think it is important for the government to introduce market reforms to help boost growth and employment (63%). 25 Q12 In your opinion, how important is it that the government in [OUR COUNTRY] should introduce reforms in each of the following areas to help increase growth and employment? (ONE ANSWER ONLY) 58

Country level analyses are reported for each of the seven areas in turn. Across all euro area Countries, more than eight in ten respondents think that it is important that their government introduces health system reforms to help increase growth and employment. This view is most widespread in Ireland (97%), Portugal (96%) and the Netherlands (95%), and least likely to be the view held by respondents in Finland (86%) and Estonia and Malta (both 89%). Across almost all countries of the euro area (17), more than eight in ten respondents think that it is important that the government introduces reforms to the education systems to help increase growth and employment, with this view most widespread in Portugal (94%) and Germany and Spain (both 93%). Furthermore, in these 17 countries, the majority of respondents say that it is very important that the government introduces such reforms, with the highest proportions reported in Spain (76%) and Luxembourg and Malta (both 75%). 59

In almost all countries (18), more than eight in ten respondents also think that it is important that the government introduces reforms to the labour market to help increase growth and employment, with this view again most widespread in Portugal (95%), followed by Belgium (94%) and Luxembourg and Italy (both 93%). The majority of respondents in all but two of these 18 countries say that it is very important that the government introduces such reforms 26, with the highest proportions reported in Italy (79%) and Spain and Malta (both 70%). In 17 countries, more than eight in ten respondents think that it is important for the government to introduce reforms to the pension system to help increase growth and employment. This view is, again, most widespread in Portugal (93%), followed by Spain (92%) and Belgium, Ireland and Slovenia (all 91%). In almost all of these 17 countries, the majority of respondents say it is very important that the government introduces pension system reforms, with the highest proportions in Malta and Spain (both 69%), Lithuania (67%) and Italy (66%). 26 The exceptions are Finland and Germany, where 49% and 47% respectively say it is very important 60

Across all countries of the euro area, at least eight in ten respondents say it is important that the government introduces reforms in the social security system. This view is, again, most widespread in Portugal (92%), followed by Spain (90%), and least widespread in Estonia (80%) and Germany (81%). In 13 countries, the majority of respondents think that it is very important for the government to introduce such reforms, with the highest proportions reported in Spain (65%), Malta (63%) and Slovakia and Greece (both 62%). There are eight countries of the euro area where more than eight in ten respondents think that it is important for the government to introduce taxation reforms to help increase growth and employment, with this view most widespread in Italy (90%), Latvia (86%) and Lithuania (85%). There are only three euro area countries where the majority of respondents think that it is very important for the government to introduce reforms in the area of taxation: Italy (66%); Lithuania (60%) and Greece (55%). 61

There is only one country where eight in ten respondents think that it is important for the government to introduce market reforms: Malta (80%). This is also the only country where the majority of respondents (57%) think that the introduction of such reforms is very important. There are further four euro area countries where at least three-quarters of respondents say that it is important for the government to introduce market reforms: Portugal (79%), Cyprus (78%), Greece (76%) and Spain (75%). It is least likely to be the view of respondents in Austria (49%). 62