Addressing Coordination Issues in the COVID-19 Crisis to strengthen long-term Solidarity in the European Union - TEPSA
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Addressing Coordination Issues in the
COVID-19 Crisis to strengthen long-term
Solidarity in the European Union
Joël Christoph*1
‘Europe will not be made all at once, or
according to a single plan. It will be built
through concrete achievements which first
create a de facto solidarity.’
Abstract
– Robert Schuman, 9 May 1950
This paper examines coordination issues
in the European Union during the Introduction
COVID-19 crisis and makes seven
recommendations for policymakers to Instead of 'contributions' representing offers
strengthen long-term European solidarity. of returned assistance in comparable
First, to increase immediate fiscal space. situations, one could define solidarity as a
Second, to strengthen joint fiscal “counterfactual reciprocity”, where mutual
capabilities. Third, to coordinate aid is grounded in the conviction that if the
immediate crisis messaging. Fourth, to giver were in the same circumstances as the
establish a common European receiver, in for instance a period of
information platform. Fifth, to secure economic insecurity or humanitarian crisis,
indigenous long-term healthcare then the receiver would, if able, provide the
capabilities. Sixth, to reaffirm internal same aid. In the European Union, solidarity
European solidarity in foreign relations. may be distinguished in two forms, that of de
Finally, to build consensus in advance for
facto solidarity, a consequence of the
strategic emergency plans.
objective interdependence of Member
States resulting from increasing economic
integration, and affective solidarity, one of
* Joël Christoph is a French MA-ML Student at Johns Hopkins University SAIS and Tsinghua University. All the opinions expressed in this
briefing are the sole view of the author, and do not represent the position of the Trans European Policy Studies Association (TEPSA).
Addressing coordination issues in the
COVID-19 crisis to strengthen long-term Joël Christoph
Solidarity in the European Union
the EU’s main raisons d’être (Fabry, 2010). the export of protective equipment from the
Questioning this fundamental characteristic bloc has been banned. Moreover, the EU is
of the EU necessarily calls into question the prepared to spend over EUR 140 million on
future of European integration. The ongoing the global search for a vaccine as well as
COVID-19 crisis has brought the limits of treatment and diagnostics (European
European solidarity into careful scrutiny. Commission, 2020), the European Central
The ongoing pandemic has shut borders Bank is purchasing EUR 750 billion of
across Europe and challenged the free government debt to stimulate the economy
movement of people and of goods, two of (European Central Bank, 2020), and
the very foundations of the European eurozone budgetary rules on government
Union. Some argue that the bloc is facing an debt have been suspended to allow member
existential crisis. For instance, Jacques states to spend what is needed to survive the
Delors, the former European Commission crisis. Nevertheless, European leaders
president, warned that the lack of solidarity remain divided over how to tackle the
posed a “mortal danger to the European economic costs, and burden sharing remains
Union” (Delors, 2020). the central issue as Europe begins to recover
from the worst phase of the outbreak.
Southern states such as Italy and Spain that
are among the hardest hit by the outbreak
At no point in the past, peace or entered the crisis with higher borrowing
war, have governments put the costs and less fiscal space, a problem that will
economy in the debt-fuelled be further exacerbated by the economic
equivalent of an Intensive Care Unit fallout as longer social distancing measures
during a deliberate shutdown to reduce aggregate spending and tax revenue.
tackle a public health crisis. In contrast, domestically, states such as
Germany have suspended balanced budgets
to unveil a ‘bazooka’ of billions of euros to
stabilize the German economy. However,
European governments have been criticized Germany and other northern states have so
for initially taking uncoordinated action at far maintained traditional ‘red lines’ and it is
the national level. In the beginning, solidarity unclear how the question of joint fiscal relief
failed because states unilaterally imposed in Europe will be resolved. This is the most
border closures and export restrictions on important question facing the European
medical goods. Since then, the cross-border Union. While the coronavirus is already
delivery of assistance has increased, and EU difficult to deal with as a public health crisis,
institutions and members states have taken it is likely to be even more costly to handle
unprecedented measures to tackle the once the economics are considered. At no
public health crisis. For instance, France and point in the past, peace or war, have
Germany have sent more protective masks governments put the economy in the debt-
to Italy than China, Germany has accepted fuelled equivalent of an Intensive Care Unit
COVID-19 patients from Italy and France, during a deliberate shutdown to tackle a
medical supplies have been stockpiled and public health crisis. Many EU member states
Addressing coordination issues in the
COVID-19 crisis to strengthen long-term Joël Christoph
Solidarity in the European Union
have among the best public health necessary in future ones. Relying on the
infrastructure worldwide. However, these European Stability Mechanism, issuing joint
are becoming increasingly overwhelmed and bonds, using the EU budget or the multi-
under-resourced due to unprecedented annual financial framework, strengthening
pressure. In the face of what is likely to be the European Investment Bank, are all
the worst health and economic crisis in the elements of a temporary recovery plan. All
EU’s history, avoiding the mistakes of past options must remain on the table to ensure
Eurozone crises is not enough, and acting in a restart of Europe’s economic engine and
solidarity has never been more important. the rebound of growth and employment
Here are seven measures to overcome after this crisis, as well as in anticipation of
coordination issues arising in the COVID-19 the next. The European Commission’s state
crisis and take steps towards a common supported short-time work scheme, SURE,
European future. guaranteed by all member states, is a crucial
step in the right direction.
1. Increase immediate fiscal space
3. Coordinate immediate crisis
Governments should be allowed to borrow
substantially in excess of their current fiscal
messaging
receipts, increasing deficits as much as To prevent future outbreaks and
necessary to keep the economy afloat and humanitarian crises, European leaders must
preserve productive capacity for the post- use clear and coordinated messaging, both
pandemic period. Increasing public debt on domestically and internationally, to publicly
government balance sheets will absorb acknowledge the magnitude of the threat
widespread private sector income losses to and to implement immediate measures
protect citizens and the economy against despite the costs on individuals and the
shocks that the private sector is neither economy. Governments must avoid mixed,
responsible for nor able to absorb (Draghi, contradictory signals or uncoordinated
2020). Protecting people from the messaging that reduces the effectiveness of
permanent damage done to employment responses to the crisis.
and capacity if families and firms fail to
repair their balance sheets will build 4. Establish a common European
solidarity and trust in the ability of information platform
governments and the EU to maintain
A common European source on data and
flexibility in response to future crises.
information during this and future crises will
2. Strengthen joint fiscal capabilities prevent the fragmentation of narratives
about the situation in different member
Minimizing damage to the economy and states, which is detrimental to solidarity. This
health requires shared commitments and avoids a single government imposing a single
engaging in the most effective European interpretation of the situation and reduces
response available. Single states, whether the stigmatization or stereotyping of others
stronger or weaker, will not be able to afford through the instrumentalization of political
this project alone. A lack of solidarity amid discourse and media coverage, for instance
this crisis threatens the solidarity that will be
Addressing coordination issues in the
COVID-19 crisis to strengthen long-term Joël Christoph
Solidarity in the European Union
in terms such as ‘benefits tourism’ or deterioration of current health and
‘welfare tourism’. economic conditions. Governments must
also have a coordinated strategic plan in
5. Secure indigenous long-term place for future pandemics and other
healthcare capabilities highrisk, low probability scenarios, from
cyber, nuclear, biological and chemical error
Governments will have to alter incentives
or terror, to climate change and seismic
and mobilize fiscal resources for the medical
political shifts. This includes building
and pharmaceutical sector to take sufficient
international communication channels and
investment in diagnostics, prevention and
organizational structures to accelerate
infectious diseases in the future, instead of
responses to future crises. Governments
concentrating research into the most
must avoid waiting until the crisis occurs to
profitable and immediately lucrative
build a national and European strategy.
treatments and cures. Furthermore,
European coordination in building The Way Ahead
indigenous medical production capabilities
will reduce the cost of addressing potential The Covid-19 pandemic is the worst health
shortages of medicine and protective gear crisis in a century and has claimed over
while avoiding overreliance on imports from 545,000 deaths worldwide (Worldometer,
non-EU countries. 2020), while putting governments under
extraordinary pressure. These challenges
6. Reaffirm internal European notwithstanding, sustained, unprecedented
solidarity in foreign relations and drastic action can reduce damage to
public health and the economy before things
The EU must reaffirm its internal solidarity
return to business as usual. In the worst
when dealing with foreign partners and
cases, everything will have to change so that
suppliers, for instance by upholding its
everything can stay the same. The European
common standards, criteria, and values in Union has been through many crises in its
the negotiation of bilateral trade and
history and the present is a historic
investment agreements. This enables the EU opportunity not only to recover but, in a
to defend and export its common values in
world of continuing uncertainty, to come out
international contexts in pursuit of a better stronger and more united than before. The
regulated and fairer globalisation and
questions differ in each crisis, but the answer
international order, which is in turn remains the same. Europe, united with one
fundamental to securing internal European
voice can be heard, and its message can be
solidarity without sacrificing the
felt. This is more important today than ever
competitiveness of member states.
before.
7. Build consensus in advance for
strategic emergency plans
While preventing a worsening recession,
European leaders should build consensus in
advance for the scenarios of prolongation orAddressing coordination issues in the
COVID-19 crisis to strengthen long-term Joël Christoph
Solidarity in the European Union
Bibliography:
Draghi, M. (2020, March 25). Draghi: we face a war against coronavirus and must mobilise
accordingly. Retrieved from Financial Times: https://www.ft.com/content/c6d2de3a-6ec5-
11ea89df-41bea055720b
Delors, J. (2020, March 28). Epidemic infects Europe with 'germ of division'. Retrieved from
Institut Delors: https://institutdelors.eu/en/derniers-passages-medias/epidemic-
infectseuropewith-germ-of-division/
Fabry, E. (2010). European Solidarity: Where Do We Stand? Should We Forster It and How?
Paris: Institut Delors.
European Commission. (2020, March 6). COVID-19: Commission steps up research funding
and selects 17 projects in vaccine development, treatment and diagnostics. Retrieved from
European Commission: https://ec.europa.eu/commission/presscorner/detail/en/ip_20_386
European Central Bank. (2020, March 18). ECB announces €750 billion Pandemic Emergency
Purchase Programme (PEPP) . Retrieved from European Central Bank:
https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200318_1~3949d6f266.en .html
Worldometer. (2020, July 8). COVID-19 Coronavirus Pandemic. Retrieved from Worldometer:
https://www.worldometers.info/coronavirus/Addressing coordination issues in the
COVID-19 crisis to strengthen long-term Joël Christoph
Solidarity in the European Union
Trans European Policy Studies Association
Rue d’Egmont 11, B-1000
Brussels, Belgium
To know more about TEPSA visit: www.tepsa.eu
Follow TEPSA on:
@tepsaeu
@tepsa.eu
TEPSA – Trans European Policy Studies Association
The European Commission support for the
production of this publication does not constitute
an endorsement of the contents which reflects the
views only of the authors, and the Commission
cannot be held responsible for any use which may
be made of the information contained therein.You can also read
