The economic effects of coronavirus are second only to the medical impact. However, members of the Eurozone struggle to agree on a common approach to the incoming recession: whether Eurobonds, policies for recovery or funding social protection, the future of the Euro will be defined by the outcome of the crisis.
Since policymakers realised about the size of the crisis, the debate between Member States has focused on the euro-area level fiscal response, with a reflection in national debates a way we haven’t seen since the Greek crisis: is it time for debt mutualisation, an additional step of fiscal transfers? Strong disagreement remains.
The role of the ECB is also proving to be fundamental, as it was during the previous crisis. They acted promptly and swiftly to mitigate the effects of the pandemic. Is it risky to rely so heavily on the ECB? Could these decisions face legal and political backlash (especially in Germany)?
The European Commission has reduced competences to tackle the (economic) effects of the pandemic but it has taken action on traditional fields – by relaxing state aid rules – and in new ones like the SURE programme with 100 billion to fund member state employment programmes. Bu does the Commission need to radically rethink its policy priorities for this mandate?
Listen to the debate with:
Marta Domínguez, Research Assistent at Bruegel. Guest editor.
Michele Chang, Professor at College of Europe, European Political and Governance Studies Department.
George Pagoulatos, Professor of European Politics and Economy at the Athens University of Economics and Business (AUEB).
Moderation: Carlos Carnicero Urabayen.
Technical production and edition: Franco Delle Donne.
An OpenEUpodcast produced by Agenda Pública.
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