Europe is at the cusp of an unprecedented economic situation: a standstill of many if not most European economies, potentially for a long period of time. In order to avoid permanent scars from the economic impact of the Coronavirus in Europe, a determined fiscal response will be necessary.
Lucas Guttenberg and Johannes Hemker argue that national governments will have to provide a massive stimulus and that Europe will need to build a safety net so that member states will not be subject to speculative attacks. This safety net should have three components: A commitment by member states to use ESM instruments without conditionality; a commitment by the ECB to use all its tools; and a number of flanking measures to underscore member states’ commitments.
Full policy brief
© Jacques Delors Centre
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article