During the Corona pandemic comes an idea ‘on the table’ again: Euro bonds. With modifications, it is currently discussed as Corona bonds. What is the idea behind? Which arguments may convince to introduce this type of common bonds? What do scientists say and who rejects Corona bonds?
“Corona bonds are feasible and important to preserve the European project. We set out a number of principles that might serve as a blueprint for the European institutions. Importantly, Corona bonds could be issued through a new public law entity and include all the safeguards required for the protection of the fundamental values of the EU.”
This is said by authors of the Leibniz Information Center for Economics who published the paper “The case for Corona bonds“.
Pierino Postacchini, on the contrary, says in his article from 16/04/2020 “Corona Bonds are not the Solution. We need faster Measures that only the ECB can Implement”. They should be implemented after the virus crisis. Read his thoughts on Brave New Europe.
However, even authors from a think-tank which is known as being more conservative argue pro Corona bonds, see the article “European instruments against the Corona crisis incomparison“.
Corona bonds are mainly rejected by the German government. Andreas Becker explains in his article “Coronabonds and the idea of European financial unity” aspects of this old EU dispute on financial solidarity.