The State, the Economy, and the Regions: Theories of Preference Formation in Times of Crisis

As a response to the sovereign debt crisis, European states have carried out various reforms. In this process, they have sought to readjust the balance between free-market logics and the role of government. These reforms are often implemented—and sometimes co-decided—by regional administrations. Little is known, however, about the governance preferences of the e´lite officials directing these administrations. This is paradoxical since regional administrations play a crucial role in the recovery strategies of European states. What are the views of regional administrative e´lites on the regulation of the economy, the role of government, and that of the free market? Are these views related to (1) early-life socialization, (2) educational pathways, (3) professional interests, or (4) the capacity of their own administration? To answer these questions, we assembled a unique dataset by interviewing 742 administrative e´lites from 63 regions and 11 countries. We find some supporting evidence for all four explanations. However, while the individual characteristics of these e´lites matter, contextual factors seem to matter more.