You searched for: Content Type Commentary and Analysis Remove constraint Content Type: Commentary and Analysis Publishing Institution Istituto Affari Internazionali Remove constraint Publishing Institution: Istituto Affari Internazionali Publication Year within 25 Years Remove constraint Publication Year: within 25 Years Publication Year within 5 Years Remove constraint Publication Year: within 5 Years Topic Financial Crisis Remove constraint Topic: Financial Crisis
- Author: Nicoletta Pirozzi
- Publication Date: 04-2020
- Content Type: Commentary and Analysis
- Institution: Istituto Affari Internazionali
- Abstract: Every era has its symbols. In 1984, Mitterrand and Kohl held hands on the battlefield in Verdun, coming to symbolise the importance of peace in the pursuit of European integration. Today, in times of COVID-19, the so-called “Coronabonds” could have emerged as the symbol of a new Europe, one that is ready and able to do what it takes to collectively overcome the present crisis. Yet, what some member states consider an indispensable emblem of European solidarity, namely debt mutualisation to face an unprecedented symmetric crisis brought about by COVID-19, is regarded by others as an ultimate excuse for moral hazard. As a result, Europe could end up with a politically more digestible European Fund, as proposed by Commissioners Paolo Gentiloni and Thierry Breton, designed to issue long-term bonds. Or, as outlined by the Eurogroup, a Recovery Fund that is “temporary, targeted and commensurate” to the extraordinary costs of the current crisis, helping to spread them across time.
- Topic: Financial Crisis, Governance, Finance, Economy, Coronavirus
- Political Geography: Europe, European Union