Whither Coronabonds? The Past and Future of the EMU in the Coronavirus Pandemic

Herzog, Bodo

doi:10.1007/s10272-020-0887-z

Cited by 9 publications

(7 citation statements)

References 18 publications

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“…General agreement in this matter might have been a result of the fact that northern states have experienced the pandemic too creating the feeling of unity instead of the divergence between creditors and debtors. However, one should note that the agreement on debt mutualization took place despite the lack of fiscal union, which might cause even deeper misunderstandings in the future (Herzog, 2020).…”

Section: The Dilemmas Of European Solidarity Principlementioning

confidence: 99%

The puzzle of post-pandemic recovery, transatlantic relations and European solidarity

Czech

2022

EiP

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Motivation: The coronacrisis has highlighted the fragility of the highly interdependent world economic order. The economic recession following numerous lockdowns weakened the position of the West in the geopolitical arena. Thus economic recovery is a must, though its significance for the US and the EU differs considerably. Aim: The paper aims to discuss the state and prospects of transatlantic relations in the era of new challenges posed in front of the US and the EU. We have selected two main issues: the incremental rivalry between the US and China, and the solidarity principle within the EU. The departure point for the analysis is the assumption that the tightening of economic cooperation between the US and the EU seems desired, but it might also lead to socioeconomic consequences questioning European solidarity in the long term. We employ the perspective of institutionalist political economy to understand the interplay between actors and the rules they create. We assume thus that actors pursue their goals, but must take various limitations into account. We also refer to the literature on economic policymaking and economic systems. Results: Under possible regionalization of the world economy after the COVID-19 pandemic, transatlantic relations will be under pressure to generate growth. As far as the US is willing to embrace this imperative, the EU might face the dilemma between struggling for better economic performance and rebuilding solidarity between member countries.

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Section: The Dilemmas Of European Solidarity Principlementioning

confidence: 99%

The puzzle of post-pandemic recovery, transatlantic relations and European solidarity

Czech

2022

EiP

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“…The mutual debt option or the principle of pooling national public debts (Eurobonds, or corona bonds) is a common debt instrument to jointly issue public debt across all MS (Blanchard et al 2017). There is an ongoing heated debate between proponents and opponents of this ambitious possible budget option (Herzog 2020).…”

Section: Corona Bonds: the Proponentsmentioning

confidence: 99%

“…A second argument against the use of a common debt instrument is that the eurozone is not a state. 7 There is no European fiscal sovereignty and hence no right to issue public debt (Herzog 2020).…”

Section: Corona Bonds: the Opponentsmentioning

confidence: 99%

Towards a more resilient European Union after the COVID-19 crisis

et al. 2021

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The pandemic crisis constitutes an unprecedented challenge for the European Union and for the Euro Area. Indeed, the European institutional architecture can be viewed as being halfway between an association of sovereign states (like the United Nations) and a politically integrated federation (like the United States). In this original construction, competences on several matters (such as economic, political, social and health issues) are shared at the European level, but also at the national and local levels, in more complex ways than in fully integrated federations. To improve the European Union's resilience to violent external shocks, the main objective of this paper is to determine to what extent these competences should be transferred to the federal level. In this respect, we will consider whether a federal leap is necessary in several areas, namely (i) monetary and fiscal policy (rules), (ii) labor markets policy and social models, migratory flows and skill shortages, and cooperation policy and (iii) renewed industrial policy and exchange rates. Despite a highly uncertain context, we outline some perspectives for the future of the European Union.

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“…The mutual debt option or the principle of pooling national public debts (Eurobonds, or corona bonds) is a common debt instrument to jointly issue public debt across all Member States of the eurozone (see Blanchard et al 2017; Benassy-Quéré et al 2018). Among economists and politicians, regardless of their ideology, there is an ongoing heated debate between proponents and opponents of this ambitious possible budget option (Herzog 2020).…”

Section: Debating Corona Bonds: the Proponentsmentioning

confidence: 99%

“…Despite the growing support for corona bonds by economists across the political spectrum, a number of economists have also called for the non-introduction of common instruments that don't provide fiscal support to Member States (see Herzog 2020).…”

Section: The Opponents: Inadequacy Of Corona Bondsmentioning

confidence: 99%

Towards a More Resilient European Union after the COVID-19 Crisis

et al. 2020

View full text Add to dashboard Cite

The pandemic crisis constitutes an unprecedented challenge for the European Union and for the Euro Area. Indeed, European institutional architecture can be viewed as being half-way between an association of sovereign states (like the United Nations, for example) and a politically integrated federation (like the United States for example). In this original construction, competences on several matters (such as economic, political, social and health issues, etc.) are shared at the European level, but also at the national and local levels in more complex ways than in fully integrated federations. To improve the resilience of the European Union to violent external shocks, the main objective of this paper is to determine to what extent these competences have to be transferred to the federal level. In this respect, we will consider whether a federal leap is necessary in several areas namely (i) monetary and fiscal policy (rules), (ii) labor markets policy and social models, migratory flows and skill shortages, and cooperation policy and (iii) renewed industrial policy and exchange rates. Despite a highly uncertain context, we outline some perspectives for the future of the European Union.

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Whither Coronabonds? The Past and Future of the EMU in the Coronavirus Pandemic

Cited by 9 publications

References 18 publications

The puzzle of post-pandemic recovery, transatlantic relations and European solidarity

The puzzle of post-pandemic recovery, transatlantic relations and European solidarity

Towards a more resilient European Union after the COVID-19 crisis

Towards a More Resilient European Union after the COVID-19 Crisis

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