21 April 2020

Social Europe: Only a ‘New Deal’ can rescue the European project (7th April 2020)

The combined sanitary and economic crisis that the new coronavirus brings upon us may in the short term seem one that affects some European Union member states more than others. But it will soon become a systemic crisis for the EU as a whole and not just for the eurozone. [...]

This is not the time to reopen a discussion on the responsibilities of the member states, or for a beauty contest among the more or less virtuous. Comparisons with the 2008 financial crisis are inherently misleading. This is an exogenous shock, and it hits all member states. Some of them might be able to put on their own recovery plan, with national budgets. But this will not save them. If some countries face, in the coming months, a structural crisis of their public health services and a deep and long-lasting recession, all member states will, at some point, be affected. [...]

The European Union must seize this opportunity to overcome its divisions and mobilise the necessary resources both to help the Member States and to develop its own European action. Issuing a specific kind of European bonds to complement the gigantic effort already made by member states to strengthen their health systems and their economies is the smartest and cheapest way to prevent a violent destruction of human lives and of millions of jobs.

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