The COVID-19 pandemic intensifies, and Europe has become one of its epicentres. This represents an unprecedented challenge for Europe’s healthcare systems and a major shock for the continent’s economy. The ECB, national fiscal authorities, and the European Commission have already started to announce plans to support the economy and avoid the current crisis turning into a depression. However, given the severity of the situation, some voices are raised among EU countries in support of a common and significant European response to deal with crisis.
Many options are currently discussed in policy and academic circles: ESM credit lines, ‘corona-bonds’, a euro-area Treasury, as well as joint expenditures. What is the best option to deal with the crisis currently unfolding and ensure that the recovery will be as quick as possible?
More information about the topic can be found in our recent blog post.