Unemployment and Confidence in EU

Abstract

It is held that financial integration requires a perfect market, perfect capital mobility, perfect labor mobility as well as perfect information. International crisis started in the USA and spread around the globe affecting many macroeconomic variables. Today EU has not yet recovered out of this crisis and confidence in EU is declining. In the present paper an attempt will be made to estimate how the unemployment rate affects the confidence in EU. The findings would be useful to investors as well as policy makers.