Europe? A shared home? At the time of Covid-19, EU countries were quite isolated. The house is still standing, but tenants are locked in their apartments.
Heads of state and government wanted to fight the crisis together, they promised a summit in mid-March. The next day Austria closed its borders, then the Czech Republic and then Poland. After a few days, Germany also closed the borders, even though Chancellor Merkel was against this measure for a long time. The Merkel government wanted to keep protective clothing instead of banning exports. The freedom to travel, operate and work from Athens to Dublin ended overnight. It is unclear whether freedom will return. The situation is "as serious as ever and dangerous for the European Union," said international affairs expert Norbert Röttgen (CDU).
The EU was seen as an anchor in a crisis-ridden world. "The world is looking for more Europe," Ursula von der Leyen said after being elected head of the EC last summer. What protects us against an unpredictable US president? More Europe! What helps against the growth of China and India? More Europe! ‘More Europe’ was seen as a broad-spectrum antibiotic.
But not against Covid-19. Everyone is fighting the virus differently. Spain with police. In the Czech Republic only those wearing masks are in circulation, Sweden allows up to 50 people to gather together. The fact that countries act so differently is not a failure for Brussels. Health policy is an issue for federal states. But in the fight against the virus, the nation-state remained exposed. In Italy, only a third of people believe that Europe is helping them, supermarkets in France advertise 100 percent French vegetables, in Hungary Victor Orbán stopped parliament.
What about Europe? The EU was a success story. He made peace, brought prosperity to the countries that were left behind. Thanks to EU regulations, we make free calls everywhere. If Apple, Facebook or Google have restrictions, it's only because of EU competition commissioners like Margrethe Vestager.
But the success story has its dark chapters. Help for Greece, the euro crisis, mass immigration, Brexit. The East is fighting the West because it will not accept refugees. North against South, because the South, as former Dutch Finance Minister Jeroen Dijsselbleom said, could not spend "money on drinks and women" and then reach out. Europe, a divided union.
The virus is also changing Brussels. Place de Schumanm, where you once saw soldiers and tanks during EU summits, is now empty. The powerful meet through videoconferencing. Ursula von der Leyen has hardly left the city in recent weeks, her family sees her via Skype. She even sleeps in Berlaymont, the headquarters of the commission, and goes out there just to run.
It wants to reduce the tendency to be national. She had drafted guidelines for border controls so that goods and passengers could move more freely. It threatened countries with lawsuits if they banned exports, planned billions in structural funds, and aimed to create unemployment benefits across Europe. "Europe is here for each other, not for everyone to think for themselves," she told the EU Parliament. That needs to change.
Terrified by their failure, countries are now carefully changing course. Export bans were relaxed. Germany sends masks to Italy, Bundeswehr ambulances take seriously ill patients from Italy and France to German clinics. But distrust remains. "The EU will either do what it has to do or say it is over," said Portuguese Prime Minister António Costa.
The decisive argument is still pending. How to distribute costs fairly? Italy and Spain not only mourn the deaths of thousands, but both countries will find it difficult to heal the economy. Italy has been struggling with huge debts since before the crisis. Spain suffers from severe unemployment, one in three young people is unemployed. These countries cannot benefit from the 1.4 trillion euro aid package, as the Germans can. The EU must therefore share the burden. Italy, Spain, France and six other countries come up with an old idea - coronabond, formerly called eurobond, but with the change being unique and time-limited. Instead of bonds from each of the countries, a common bond is proposed. Quantity: 1 trillion euros. Italy, Spain and Greece can borrow almost as much free money as Germany. For a ten-year federal agreement, we have a negative interest rate of 0.5 percent, for Italian government bonds the interest rate is plus 1.6 percent!
The Netherlands and Germany are opposed. "Unique debt cannot be the solution," said CDU General Secretary Paul Ziemiak. The European Rescue Fund (ESM), which can distribute up to 410 billion euros in loans, will help. But the south is against it because the ESM has a flaw. It only helps bankrupt candidates and seeks reforms such as cutting pensions and social spending, which is not a good idea at the moment.
The situation is more difficult due to the fact that politicians are under internal pressure. Emmanuel Macron fears Marine Le Pen's right-hand man Giuseppe Conte from populist Matteo Salvini. Dutch Prime Minister Mark Rutte fears a run-off election. Angela Merkel saw another increase in AfD. Right-wing extremists have launched as an anti-European party. On the other hand, Germany will only recover if Europe recovers. 60 percent of its exports go to the EU. "If we help Italy recover quickly, we will help ourselves," said Gabriel Felbermayr of the Kiel Institute for World Economics.
In the end, the money is likely to flow from many channels. The EU Commission wants to borrow 100 billion euros so that all countries can pay short-term labor benefits; The European Investment Bank will provide up to 200 billion euros in loans to companies; The ESM can give states 100-200 billion euros without much demand. Heads of state and government want to decide at their next summit in April. And maybe one day there will be a coronabond. Giuseppe Conte has made it clear that "Germany should not pay a single euro for Italy's debt." It just requires "favorable market conditions." / Der Stern
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