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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.

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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

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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.

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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

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How the EU can achieve the 2030 climate targets in the road transport and building heat sectors
Roland Kube / Finn Wendland IW-Policy Paper No. 13 14. July 2021

How the EU can achieve the 2030 climate targets in the road transport and building heat sectors

o implement the European Green Deal, the European Commission is planning a comprehensive renewal of European climate protection instruments in July 2021. This study sheds light on the planned realignment of the climate policy guiding instruments.

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Sandra Parthie Event 23. June 2021

livestream debate (via Zoom): Corporate finance – How to steer the transformation after the Covid crisis?

While the precise impact varies from sector to sector, the Coronavirus generally has left a strong mark on the European economy. A broad policy response has alleviated the repercussions on European SMEs and corporates, albeit to a limited extent. Importantly, ...

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