Pandemic recovery
European governments are turning their attention to recovery from the COVID-19 pandemic. Many EU orthodoxies are being challenged: the role of the European Central Bank, the bloc’s fiscal rules, and its principles of free movement, free trade and limited state aid. The recovery fund offers an opportunity to strengthen the EU economically and politically, but its success depends on implementation by the member-states. Meanwhile, China is eyeing the strategic advantage it can gain from the haphazard response in the West.
Coronavirus tests Europe’s cohesion, alliances and even democracy
Matters will get worse with the economic impact of the crisis, Mr. Grant said. “The euro crisis could return, because there are too many bad debts in banks,’’ especially in Italy, “and there is still no proper bank resolution regime and no eurozone deposit insurance.’’
The populists, he said, “will make hay with that.’’