Intergroup Emotions and European Fiscal Integration: The Case of the Netherlands' ReArm Europe Plan Debate

Abstract

With the increasing fiscal interdependence within the European Monetary Union, proposals for advancing fiscal risk sharing and capacity building have repeatedly exposed deep divisions between Member States. While the existing literature on EMU politics focuses on negotiation dynamics, preference formation and politicisation, the role of emotions within these debates remains underdeveloped. This article explores how emotions construct group boundaries and intergroup relations in the political debate in the Netherlands on the ReArm Europe Plan, specifically focusing on the elements of the plan that touch upon increased fiscal risk sharing and capacity building. This research argues that departing from a certain social identity - the European Identity, Responsibility Identity or National Identity - emotions strengthen in-group favouritism and govern relations with out-groups, particularly reinforcing international divisions within the EMU, such as the North-South divide. Exploration of five parliamentary debates in March and April 2025 show that while empathy towards the in-group translates into positions grounded in solidarity towards other Member States, anger, fear and contempt are accompanied by positions of conditionality or rejection because of the perception that other Member States are undeserving of...