Dogma and realism

During the recent debt crisis in Europe, there was plenty of scope for moralizing on fiscal issues that allowed austerity to be imposed even when it made no economic sense, even when that was done for with disciplinary purposes in mind.

However, things are different with the current crisis. The coronavirus pandemic is in full swing and there is no room for such excuses. Now the crisis has spread everywhere, it is unpredictable and has rendered the policies of individual member-states as irrelevant.

That is why the objections to the issuance of a so-called “corona bond” are simply dogmatic. If this dogma prevails, it may prove to be even more devastating for Europe than the virus itself.