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Corona-Bonds und EU-Verschuldung: Zukunftsvision oder Europäische Naivität?

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  • Herzog Bodo

    (Professor für Volkswirtschaftslehre, insbes. Europäische Makroökonomik und Geldtheorie, ESB Business School, Hochschule ReutlingenAlteburgstr. 150, 72762ReutlingenDeutschland)

Abstract

This article studies the current debate on Coronabonds and the idea of European public debt in the aftermath of the Corona pandemic. According to the EU-Treaty economic and fiscal policy remains in the sovereignty of Member States. Therefore, joint European debt instruments are risky and trigger moral hazard and free-riding in the Eurozone. We exhibit that a mixture of the principle of liability and control impairs the present fiscal architecture and destabilizes the Eurozone. We recommend that Member States ought to utilize either the existing fiscal architecture available or establish a political union with full sovereignty in Europe. This policy conclusion is supported by the PSPP-judgement of the Federal Constitutional Court of Germany on 5 May 2020. This ruling initiated a lively debate about the future of the Eurozone and Europe in general.

Suggested Citation

  • Herzog Bodo, 2020. "Corona-Bonds und EU-Verschuldung: Zukunftsvision oder Europäische Naivität?," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 69(2), pages 148-165, August.
    • Handle: RePEc:lus:zwipol:v:69:y:2020:i:2:p:148-165:n:2
    DOI: 10.1515/zfwp-2020-2032
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    Citations

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    Cited by:

    1. Agnieszka Gehringer & Jörg König, 2021. "Recent Patterns of Economic Alignment in the European (Monetary) Union," JRFM, MDPI, vol. 14(8), pages 1-23, August.

    More about this item

    Keywords

    Eurobonds; Corona Pandemic; European Monetary Union; EU Debt; European Central Bank; Court of Justice of European Union; Federal Constitutional Court;
    All these keywords.

    JEL classification:

    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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