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Taking the challenge: A joint European policy response to the corona crisis to strengthen the public sector and restart a more sustainable and social Europe

Author

Listed:
  • Ritzen, Jo

    (UNU-MERIT, Maastricht University)

  • Lopez, Javi

    (European Parliament)

  • Knottnerus, Andre

    (Maastricht University)

  • Perez Moreno, Salvador

    (UNU-MERIT, Maastricht University, and University of Malaga)

  • Papandreou, George

    (Greek Parliament)

  • Zimmermann, Klaus F.

    (UNU-MERIT, Maastricht University, and University of Bonn)

Abstract

Towards the end of 2020 the economies of many EU countries will be in serious disarray due to the corona crisis. In the attempt to regain employment and production, EU member state governments will be tempted to fall back into the 'old normal' - over the thorny alternative of employing a policy of 'creative destruction'. Here we argue in favour of a more visionary strategy to achieve sustainability and to further a social Europe with a stronger public sector. A strong Europe is the solution and not the problem for the future of the continent. EU cooperation implies joint Euro area monetary funding (ECB) and joint Euro area borrowing (ESM or otherwise), but only conditional on strong commitments for sustainable development, an improvement of the public sector, joint taxation as well as for sound fiscal behaviour.

Suggested Citation

  • Ritzen, Jo & Lopez, Javi & Knottnerus, Andre & Perez Moreno, Salvador & Papandreou, George & Zimmermann, Klaus F., 2020. "Taking the challenge: A joint European policy response to the corona crisis to strengthen the public sector and restart a more sustainable and social Europe," MERIT Working Papers 2020-015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2020015
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    File URL: https://www.merit.unu.edu/publications/wppdf/2020/wp2020-015.pdf
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    Citations

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    Cited by:

    1. Ritzen, Jozef M., 2020. "Once the great lockdown is lifted: Post COVID-19 options for the economy," MERIT Working Papers 2020-057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Corona crisis; Europe; employment; economic development; environmental sustainability; social Europe; education; health; ECB; sovereign long-term interest rates; conditionalities; taxation;
    All these keywords.

    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • F30 - International Economics - - International Finance - - - General
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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