Does European Union Funding Reduce Eurosceptic Voting?

Abstract

Governments redistribute ever larger shares of their budgets to enhance the economic performance of specific areas within their jurisdiction. However, there is little evidence about one of the most fundamental questions arising from such place-based policies: Do citizens reward politicians for funding that benefits their local environment? To answer this question, I turn to the European Union and leverage quasi-experimental data from an initiative that distributed vouchers to European municipalities to establish free and high-quality WiFI connectivity before the European Parliament election in 2019. Moreover, I analyze geolocated data about beneficiaries of two major European Union funds, European Parliament election results along with register data from polling stations, and a city-wide survey experiment in Denmark. The results show that European place-based policy has little to no impact on turnout and Eurosceptic voting in European Parliament elections. The findings are discussed in the light of the recently introduced European Union recovery fund to combat economic downturn caused by the COVID-19 pandemic.