Abstract: Existing literature on the impact of economic changes on governmental trust presents mixed and contradicting findings. These contradicting outcomes of objective economic performance on...Show moreAbstract: Existing literature on the impact of economic changes on governmental trust presents mixed and contradicting findings. These contradicting outcomes of objective economic performance on trust can be partially explained by an asymmetrical bias. When economy is bad, trust will be affected, if economy is good then trust will not be affected. The credit and sovereign debt crisis changed the economic situation in the eurozone countries. In order to examine these contradicting claims, this research investigated the changes in governmental trust during the sovereign debt crisis. Which factors can be related to governmental trust is examined at aggregated and individual level. Trust in EU and national government is examined in order to see if they are influenced by the same factors. During the sovereign debt crisis trust levels in the eurozone dropped considerably. At aggregated country level, governmental trust is related to unemployment before and during the crisis. A general trend of decline in governmental trust was not found. Positive and negative trend lines were found for different countries. Trust in national government and EU government is strong and positively correlated to each other, yet the direction of causality was not examined. At individual level trust can be best explained by crisis performance and by objective and subjective economic indicators. Finally, problem solving capacity, economic uncertainty, social status and life satisfaction are of significant, but weak influence on trust in national and EU government.Show less
