Policy makers in the European Union’s member countries must walk a fine line between inaction and misdirection in their search for a way to combat the economic malaise wrought by the coronavirus. EU-issued debt could serve as an effective, temporary backstop to bring some degree of relief to the region’s economies. As this astute analysis from economist Guntram B. Wolff reveals, this insurance instrument should derive from EU institutions rather than from national governments. Such an approach would be more politically viable, no small feat in the rough-and-tumble obstacle course that is the European Union.
About the Author
Guntram B. Wolff is the director of Bruegel, a European think tank.
Comment on this summary
By the same author
In our Journal
2 years ago
The Revival of Keynesianism?
Is the state coming back strong and big with COVID-19? A reading list. From The Wall Street Journal to Foreign Policy, everyone seems to agree: Bidenomics contains more of John Maynard Keynes than Milton Friedman. But what does that mean? We have summarized the background and underlying theories in a reading list. John Maynard Keynes […]