The opportunity in every crisis - Euro/Corona bonds

The weak should be helped and those who need help should get it as long as they stick to certain rules. The guiding principle of the European Union must be brought into focus again. States like Poland or Hungary meanwhile give the impression that they would very much like to take the funding, but want nothing to do with the basic political ideas and principles.

This cannot stay that way, because we should work on a United States of Europe in the long term if we want to keep Europe as we know it for the next few years. Every crisis also has an opportunity, because we can learn from mistakes that have already been made and, for example, bring back the domestic production of critical goods. Or we could just issue joint bonds that would make it possible for countries to bring their infrastructure and hospitals back to a better level or to boost their economy.

I am a strong supporter of the basic European idea, but basic tools such as the veto right should be abolished and simple democratic majorities should be introduced instead.

This would mean that solidarity would also come into play for all other reforms and that individual member states could not veto entire reforms with their right to veto.

Long live the principle of democratic majority, although it can of course be argued about a simple or qualified majority, but I think that a veto right as we currently practice it is fundamentally wrong. In addition, the EU must be able to consistently kick Member States out of the EU, provided that it does not adhere to measures and requirements that have been taken jointly and, at best, faster than when our British friends exit the EU. Only when such points are consistently addressed does it make sense to generalize debts later. That is why euro bonds are the right step, in the long term, but not now and in the current situation. Because the course must first be set and that this can be carried out in the current exceptional situation, I think is relatively unlikely, even wrong. The question will be whether the Netherlands, Austria and above all Germany are ready to put aside their negative attitude towards this step of generalizing debt. I mean what would be the impact. Without economic fanfare, it would look like this: The more affluent countries would have to pay a little more (or in the case of Germany at all again) for their debts. Countries like Spain, Italy, but also Eastern European countries do a lot less because the credit default risk would now be spread across the entire shoulders of the EU. In principle, the basic idea of ​​solidarity holds. There is of course a lot more to it than that. Among other things, the heads of government of the weaker member states would have to make some compromises in order to ensure long-term stability within the EU and national unilateral action would have to be prevented. But back to reality. Now we have to use the existing means to help others, possibly even save them again and help them recover from this shock, which, incidentally, absolutely nobody can do anything about. The options for doing this are, among others, with the ECB and the ESM. However, if this is done and a certain basic normality has returned, we should sit down at a table and all ask ourselves what we really want. A Europe of solidarity with all the advantages and disadvantages for each individual member country. Or a group of states in which each individual does its own thing at the national level and boasts the shadow of the European flag and its funds. As I said, there is an opportunity in every crisis.

© 2021 by Lukas Kuemmerle

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