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#COVID19 Economic Crisis: Sharing the Burden in Europe
Plenty of liquidity is on its way. It’s time to think about the distribution of losses. In the spirit of solidarity and in the view of spillovers, burden sharing should not remain an entirely national matter.
A thread 1/12
Plenty of liquidity is on its way. It’s time to think about the distribution of losses. In the spirit of solidarity and in the view of spillovers, burden sharing should not remain an entirely national matter.
A thread 1/12
National measures have been announced to change the allocation of losses across sectors:
Households ➡️ public, eg via social safety nets
Corporates ➡️ public, eg via loan guarantees and grants
Corporates & HH ➡️ banks, eg via mortgage moratoria
2/12
Households ➡️ public, eg via social safety nets
Corporates ➡️ public, eg via loan guarantees and grants
Corporates & HH ➡️ banks, eg via mortgage moratoria
2/12
The crisis hits the corporate sector hard. We must avoid corporate-sovereign doom loops. ☠️💥☠️
Therefore, we ideally deploy European burden sharing BEFORE national losses are passed on public balance sheets.
Too little discussion is taking place on this!
3/12
Therefore, we ideally deploy European burden sharing BEFORE national losses are passed on public balance sheets.
Too little discussion is taking place on this!
3/12
