1. Home
  2. Studies
  3. European Rescue and Recovery Programmes Against the Corona Crisis
Hubertus Bardt / Sandra Parthie IW-Policy Paper No. 8 24. April 2020 European Rescue and Recovery Programmes Against the Corona Crisis

The current crisis is different from the situation 2008/2009, but again it is a tremendous challenge for the economies across Europe. The Corona-crisis is hitting the economies symmetrically, though with differences in magnitude levels, while the 2009 crisis was primarily a crisis of the banking industry and the manufacturing sector.

Download Study
European Rescue and Recovery Programmes Against the Corona Crisis
Hubertus Bardt / Sandra Parthie IW-Policy Paper No. 8 24. April 2020

European Rescue and Recovery Programmes Against the Corona Crisis

German Economic Institute (IW) German Economic Institute (IW)

The current crisis is different from the situation 2008/2009, but again it is a tremendous challenge for the economies across Europe. The Corona-crisis is hitting the economies symmetrically, though with differences in magnitude levels, while the 2009 crisis was primarily a crisis of the banking industry and the manufacturing sector.

This time, value chains are substantially affected. As the virus does not hit all countries at the same time, there will be distortions in the value chains over the next months.

The assessments on the impact on national GDPs range from a best-case scenario -5% for Germany to a worst-case scenario of -12% for Italy.

To deal with the impact of the crisis a European rescue programme is needed immediately, including bringing down infection rates and providing sufficient medical equipment and services.

Regarding the economic support, the comprehensive efforts by the ECB and the Commission, including loosening the rules concerning state aid and the provision in the context of the SURE programme for short time work are very welcome.

In a second phase, Europe will need a common recovery programme fostering economic development and coming back to sustainable growth quickly. Europe must secure open borders for goods, services and labour, which are crucial for the maintenance of the single market and for restarting cross-European value chains. Europe needs a large-scale and timely initiative to foster growth through public and private investments, focusing on health, technology, and the green economy.

The Green Deal should play a key role for the design of the economic recovery programme. The 1.5 trillion euro plan foreseen by the Commission is appropriate to address the challenge faced by European economies. However, to avoid asymmetric rebounds within the EU after the emergency, the European recovery plan must be implemented soon and in a coordinated fashion.

Download Study
European Rescue and Recovery Programmes Against the Corona Crisis
Hubertus Bardt / Sandra Parthie IW-Policy Paper No. 8 24. April 2020

European Rescue and Recovery Programmes Against the Corona Crisis

German Economic Institute (IW) German Economic Institute (IW)

More on the topic

Read the article
How to reduce electricity prices – ideas of the Affordable Energy Act
Alexander Radunz / Sandra Parthie Event 29. January 2025

Breakfast debate: How to reduce electricity prices – ideas of the Affordable Energy Act

While Member states are ultimately responsible for their energy mix; their decisions have cross-border consequences. They impact the prices at the EEX and the use and need for interconnectors. We want to take a holistic look at these dynamics and focus on the ...

IW

Read the article
Markus Demary / Vera Demary IW-Policy Paper No. 7 2. September 2024

Crypto regulation in the EU

FC Bayern Munich footballers advertise for the crypto exchange Bitpanda, Crypto.com advertised with rapper Eminem during the NBA playoffs of the Los Angeles Lakers basketball team, whose arena was renamed “Crypto.com Arena” in 2021.

IW

More about this topic

Content element with id 8880 Content element with id 9713