Article 51ZJH The coronavirus crisis has exposed the truth about the EU: it's not a real union | Simon Jenkins

The coronavirus crisis has exposed the truth about the EU: it's not a real union | Simon Jenkins

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Simon Jenkins
from Economics | The Guardian on (#51ZJH)

The arguing over a financial rescue package for hard-hit states shows that even member states don't trust Europe

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The European Union has scraped through its latest crisis by the skin of its teeth. The past week has been a disgrace. When ministerial talks collapsed on Thursday over the plan for a "coronabond", the reaction seemed terminal. Germans and Dutch insulted Italians and Spaniards. Italy's prime minister, Giuseppe Conte, said his country faced an "economic and social emergency", and the EU appeared not to care. The Danes spoke of "a financial crisis on steroids". The European commission's vice-president, Frans Timmermans, predicted "the EU as we know it will not survive this".

Finally a last-minute package was agreed, for a500bn of emergency loan finance. This was little more than an extension of the existing European stability mechanism, designed to help individual countries in short-term emergencies. Even then, it was a mere third of what the European Central Bank had said was needed, a1.5tn euros. What was specifically not agreed was any sharing of the economic burden of the pandemic across European treasuries in general. It was mostly more loans.

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