Saturday, 22 January, 2022

Coronavirus: “Europe must develop common financing instruments”


For the chief economist of the OECD, European states have learned the lessons of the 2008 crisis and have each invested substantial sums to manage the economic crisis caused by the coronavirus. Laurence Boone regrets, however, the lack of coordination and calls for the creation of a common instrument to finance these new expenses in a more united manner.

Laurence Boone, OECD Chief Economist

Is the budgetary response of European states up to the economic crisis caused by the coronavirus?

States have made colossal budgetary efforts, which was highlighted in Thursday’s G20 press release, and this is particularly the case in Europe. It should be noted that the answers given are very broad, and relatively similar. Almost everywhere in Europe, there are three types of measures: those intended for health services – with additional expenditure for research but also for health personnel and the purchase of equipment – those aimed at ensuring a minimum income for a large part of the workforce and those used to keep businesses alive during this period when the economy is put into hibernation.

For the chief economist of the OECD, European states have learned the lessons of the 2008 crisis and have each invested substantial sums to manage the economic crisis caused by the coronavirus. Laurence Boone regrets, however, the lack of coordination and calls for the creation of a common instrument to finance these new expenses in a more united manner.

Laurence Boone, OECD Chief Economist

Is the budgetary response of European states up to the economic crisis caused by the coronavirus?

States have made colossal budgetary efforts, which was highlighted in Thursday’s G20 press release, and this is particularly the case in Europe. It should be noted that the answers given are very broad, and relatively similar. Almost everywhere in Europe, there are three types of measures: those intended for health services – with additional expenditure for research but also for health personnel and the purchase of equipment – those aimed at ensuring a minimum income for a large part of the workforce and those used to keep businesses alive during this period when the economy is put into hibernation.