COVID-19: Lessons from the 'euro crisis': EPC's Emmanouilidis and Zuleeg

17 April 2020

The paper takes some lessons from the ‘euro crisis’ for the EU’s response to the COVID-19 crisis.

 In a nutshell, it comes to the following conclusions:

 

• First, the EU and its members stand and fall together. No country can isolate itself from the effects of the COVID-19 crisis and unconditional solidarity guided by the principle of enlightened self-interest will have to light the Union’s way out of the crisis.

 

• Second, it is economically and politically wise to act early and forcefully if the EU27 want to get ahead of the curve and pre-empt the crisis from spiraling out of control. The Union should thus now (i) jointly set up and finance a common COVID-19 recovery and growth fund; and (ii) agree on and then implement a coordinated European ‘exit management strategy’.

 

• Third, EU leaders in all member states must recognise that taking absolutist positions will undermine the search for an effective European strategy to manage and eventually overcome the COVID-19 crisis – disunity, fragmentation and distrust will result in failure.