After the failure of the European Council, a dynamic compromise between Germany and the 9 states calling for "coronabonds" is urgently needed.
On 26 March, a dramatically divided European Union emerged from the European Council dedicated to the measures to be taken to manage the most serious crisis from 1929 to today, much worse than the crisis of 2012-2017. The coronavirus pandemic and the economic and social crises that are emerging place Europe in front of an extraordinary opportunity: to decide to advance towards a deeper unity or to embark on an irreversible decline. The way forward will naturally depend on the decisions of governments in the European Council and in the other institutions of the Union; but also, and above all, by the mobilization of citizens and public opinion in each of the Member States. Measures that correspond to the values, traditions and major global responsibilities of the European Union? The application for the Europe is as follows: is the European Union a community of destiny, a Schicksalsgemeinschaft, or is it just an instrumental association of national egoisms, where the blind choice of each for himself clearly prevails over the ability to meet historical challenges? Is there still a common sense of belonging based on strong common interests?
The disintegration forces from the right and far right, victorious against Brexit but temporarily defeated in the elections for the European Parliament on 26 May last year, are here, ready for a new, relentless attack on the euro and the European Union. And this time these forces could even win, cynically exploiting the widespread popular feeling of disconnection with the European Union, caused in part by the enormous sufferings endured during this health crisis and by the social and economic tragedy that awaits us, but also by political inaction and morality of the pro-European elites.
The European Parliament has clearly spoken out in favor of a leap forward in European integration. The European Commission, however, despite having launched the great visionary and identity project of the "Green New Deal" in 2019, carries a part of responsibility in the current stagnation. The reason lies in a lack of leadership, both in the case of the multiannual budget and in the case of measures to manage this health crisis and its economic consequences. Contrary to the crisis of 2012-2017, this time we are not facing an asymmetric shock: it is symmetrical and affects all countries, even if at this moment it affects with particular harshness those of the South, which have already had to bear the greatest weight during the crisis migration. An exceptional emergency situation requires exceptional remedies.
The decision of the ECB to commit 750 billion euros on the bond market is important, but it is not decisive, because in the past, during minor crises, Eurotower had committed between 50 and 80 billion euros per month for several years. (quantitative easing). Furthermore, the ECB cannot be expected to act alone: its measures must be accompanied by national and European policies. The suspension of the Stability Pact may allow national governments to respond to this emergency as they would respond "to a war", to quote Draghi's words in the Financial Times: to finance the maximum efforts to save our industry and our economy, which then would have an impact on employment.
But all this is dramatically insufficient in the face of enormous needs and budget deficits, which in the context of the expected recession will only increase, between 2 and 6 per cent of GDP according to estimates. It is therefore imperative that the European Union combines a manifestation of solidarity against the virus with concrete financial solidarity.
The situation in the European Union has never been so threatening and political decisions can push millions of citizens towards Euroscepticism and nationalism with unpredictable consequences, as sadly demonstrated by the Hungarian case.
Mutual accusations are more severe than ever. On the one hand there is the theme of "moral hazard" dear to the German and Dutch right: Eurobonds, that is, the mutualisation of national debts, would encourage immoral practices and budget laxity in indebted countries. On the other hand, the Northern countries are accused not only of a lack of solidarity in a situation that sees almost 1,000 deaths a day in Italy and Spain, growing social unrest and an important growth of the pandemic in France and Belgium, but also, and more seriously, of wanting to take advantage of the looming financial crisis to enrich and change the balance of power in Europe. These mutual accusations, strongly mediated, this collapse of trust are destabilizing even the most convinced Europeanists, they are sinking the very core of the European consensus built with such confidence in the past seventy years. The damage to our democracies could soon become irreparable.
The European Council on 26 March failed miserably in finding a compromise. Even more disastrously, he delegated the search for a solution to the Eurogroup, despite the latter having in turn delegated the matter to the Council. A stall that absolutely must be resolved in the next decisive days.
We are convinced that not only within the 9 Member States whose governments have compiled and sent to Charles Michel the letter asking for coronabonds, but also in the public opinion of Germany, Holland, Austria and Finland, there is broad consensus for:
(a) a negotiation on the conditions for an emergency access to the MES (the European Stability Mechanism, which includes 430 billion euros), the loans of which are currently tied to a protection under the Member State in crisis;
(b) the creation of a European group of qualified experts, able to propose new and urgent tools with all the necessary technical details. Obviously, the 9 States concerned must not focus exclusively on Eurobonds, as if they represented the only viable solution, but on the basic objective. However, the Eurobond proposal is efficient (unity in front of world markets) and symbolic (towards citizens). It cannot therefore be dismissed as cheap propaganda.
Basically, two important messages must be sent:
The first message, a message of hope, must speak to the ordinary citizen, to the peoples of Europe shocked by the coronavirus crisis and worried about their future: the European Union is here to help. It is facing this health, social and economic crisis head-on, with greater unity and a major project of economic and social recovery.
The second message must be addressed to the world in general: the European Union guarantees the unity, strength and stability of the Eurozone, ensuring our "common sovereignty" (Macron dixit) in the face of world markets and in the face of powers seeking to divide and destroy the Union.
The European Union has a global responsibility towards the human race. The United States has underestimated the current pandemic and its central government has shown that it no longer has the political and moral authority necessary to effectively coordinate the world battle against coronavirus, nor has it launched the new economic policies necessary in this period of primaries. and in this phase of self-isolation. Only the European Union, in a context of multilateral cooperation, can intervene effectively and pave the way for the management of this unprecedented health crisis and its social and economic consequences.
The time has come for a new European patriotism. New because it must absolutely be rooted in national communities mobilized on the theme of solidarity, as well as on transnational networks. The millions of committed citizens, volunteers, health workers and civil society associations, active in the fields essential for the survival of our society, are united: this is the solid human basis for a new phase of the idea of Europe, this is the way to connect the fundamental values of Europe with technical and political capacity in an innovative way, this is the way to offer the world a message of hope and strength against this unprecedented crisis.
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