This article analyses the role of economics in voting behaviour in Greece, Portugal and Spain. First, it describes the objective economic conditions in these countries and investigates the degree to which they reflect the electorates’ economic perceptions. Second, a multilevel model of voting behaviour for Greece, Portugal and Spain is tested to determine if, as expected, economics is more important than social and political cleavages. This approach allows one to assess the effects of both individual voters’ economic perceptions and objective economic conditions to determine which are more important, and to compare their effects with social and political cleavages. With the exception of Greece, the economic voting model will also be tested under different political conditions (i.e., type of government in each country).