The Coronavirus crisis as a test to the EU’s fiscal and banking policy reforms
The reforms in the EU’s economic and financial governance structure in response to the Euro crisis have been put to the test by the Coronavirus pandemic. While the resurfacing of the sovereign debt crisis has highlighted the inadequacies of the Union’s fiscal policy reforms, the relative stability of the banking system so far hints at a partial success of the banking union. Philipp Lausberg argues that the EU recovery fund is a step in the right direction, while a completion of the banking union needs priority to prevent a banking crisis should the EU face a post-pandemic recession period.
Post-Crisis Democracy in Europe blog, 28 July 2020
Ironically, an uncompleted banking union risks causing a new banking crisis, which could then in turn lead to the necessary institutional reforms. Photo: EC Vice-President Valdis Dombrovskis, European Union 2017.