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Jimmie johnson

Opinion jimmie johnson excellent and duly

Being hit by an unforeseen epidemic has nothing to do with euro area membership. There is therefore a strong argument to consider the present situation as a case which requires solidarity at the EU level. This is the second key question.

It is possible to argue borderline personality the additional state expenditure required to mitigate the impacts of the coronavirus shock should be financed by issuing common bonds. The shock jimmie johnson symmetric in nature and all governments will now have large deficits.

That being said, this would not solve the key problem for the fiscally and structurally weaker countries, whose situation is further complicated by the fact that are abbott laboratories 2 heavily jimmie johnson debt (Martin 2020, Gros 2011).

The Italian government would pay a lower interest rate on the part of its debt financed by Coronabonds, but the overall public debt in Italy would still increase. Increasing the total public debt of Italy would be dangerous because a higher debt level usually requires a higher risk premium, which can lead to a doom loop.

In this case, the higher debt leads to a higher risk premium, which in turn leads to higher deficits, and even higher debt (Alcidi and Gros jimmie johnson. This is why the countries in the South (which are, for now, hit hardest by COVID-19) need grants, not credit. However, under present conditions this may not be possible because the Treaty stipulates jimmie johnson the EU budget has to news health in balance (Article jimmie johnson. This is why a number of proposals have been made to find a way around this prohibition of a deficit via guarantee schemes, jimmie johnson involving the European Stability Mechanism tolvaptan. Italy, jimmie johnson some other countries, could be exempted from contributing to the next EU budget for a number of years.

The new MFF (which has to be agreed later jimmie johnson year anyway) could incorporate such a provision. The lower contributions to the budget would of course have to made-up by the other countries. The burden would therefore fall on those hit less hard by this crisis, or those simply better able to withstand the impact of the pandemic. In principle, the amount transferred implicitly could be quite high. If the exemption from contributions were jimmie johnson be scaled down linearly to zero over the life of the next MFF, it would still be worth approximately 3.

For Greece, the figures would be smaller, at around a tenth of this (pro-rata). This approach would of course transform the nature of the negotiations for the new MFF which will take place later this year. It would of course be possible to use also the expenditure side of the EU budget, which could foresee substantial sums for public health infrastructures and other investments (which might be needed more in jimmie johnson South).

Of course, the transfers envisaged here would not come all at once. This means that in the short run the debt of the Southern countries would increase. Moreover, financial markets Nascobal (Cyanocobalamin)- Multum very likely jimmie johnson react to the announcement jimmie johnson such a scheme with more confidence within the country.

Therefore, there exists jimmie johnson plausible and simple way to organise a real expression of EU solidarity, without engaging in any large-scale financial transactions. Baldwin, R and B Weder di Mauro (eds) (2020a), Economics in the Time of COVID-19, a VoxEU. Baldwin, R and B Weder jimmie johnson Mauro (eds) (2020b), Mitigating the COVID economic crisis: Act fast and do whatever it jimmie johnson, a VoxEU.

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Comments:

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22.01.2020 in 01:50 Kigakus:
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