Coronavirus Crisis: European Union Needs More National Flexibility

Possessing neither the cohesion of a nation-state nor the reach of a continental empire, the European Union (EU) faces the current pandemic like a tightrope walker caught midway between cliffs. Buffeted by the crosswinds of the coronavirus, it faces the temptation to move toward the seeming safety of deeper federal union. Today, that temptation appears in the form of so-called “coronabonds,” the latest attempt to mutualize European debt within the eurozone economy.

With Emmanuel Macron ensconced in the Élysée Palace, the policy of European fiscal union enjoys the passionate support of one of Europe’s two biggest powers for the first time. Just last week, Macron argued that the European Union (EU) had “no choice” but to establish a fund that “could issue common debt with a common guarantee.” On Thursday, EU heads of government will deliberate Macron’s proposal at the most consequential EU summit in years.

About the Author

Peter Rough

Peter Rough, a former director of research in the office of George W. Bush, is a fellow at the Hudson Institute.

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Possessing neither the cohesion of a nation-state nor the reach of a continental empire, the European Union (EU) faces the current pandemic like a tightrope walker caught midway between cliffs. Buffeted by the crosswinds of the coronavirus, it faces the temptation to move toward the seeming safety of deeper federal union. Today, that temptation appears in the form of so-called “coronabonds,” the latest attempt to mutualize European debt within the eurozone economy.

With Emmanuel Macron ensconced in the Élysée Palace, the policy of European fiscal union enjoys the passionate support of one of Europe’s two biggest powers for the first time. Just last week, Macron argued that the European Union (EU) had “no choice” but to establish a fund that “could issue common debt with a common guarantee.” On Thursday, EU heads of government will deliberate Macron’s proposal at the most consequential EU summit in years.