: EU Economic policy response to the coronavirus pandemic
The policy brief describes and assesses the economic policy measures that have been adopted or are under discussion at EU level in response to the corona pandemic. The ECB has reacted quickly, massively expanded liquidity support and relaxed the rules for bond purchases. The European Commission relaxed potentially restrictive rules and started to mobilise resources at EU level to counter the immediate effects of the Covid-19 crisis. Almost all of the support measures adopted are in the form of loans, whose value to member states is limited. If the EU Commission's proposal for a recovery plan is actually implemented, however, it will mark a fundamental change in European integration. Until recently, no one could realistically imagine joint borrowing on such a scale, with considerable geographical and intertemporal distributional effects. Nevertheless, the plan also raises questions. Above all, apart from financial support for national measures, there is still a lack of genuinely European answers to the crisis: a programme for investment in European public goods, such as railways and electricity networks and in the field of public health is recommended.
EU Economic policy response to the coronavirus pandemic
IMK Policy Brief , Düsseldorf , 11 pages