The European Union’s fondest followers are kind of thrilled with final week’s main coronavirus spending spree. Leaders of EU member states agreed to pour €750 billion into fiscally strapped members equivalent to Italy.
These followers must be warier of getting what they’ve wished for. An analogous help package deal is proving controversial within the U.S.—the fiscal union the place Europeans mistakenly consider this form of factor is simple.
Europeans have lengthy seemed throughout the Atlantic with envy. America boasts a single forex and in addition the power to redistribute tax cash and borrowed money from affluent zones of its continental financial system to those who are much less well-off. True believers within the EU argue their bloc requires the identical to operate economically and politically.
The Covid-19 pandemic has offered a possibility for European integrationists to go for broke (figuratively and in time maybe actually) in emulating what they assume is the U.S. mannequin. The European Fee will problem bonds backed collectively by all EU members, after which apportion the proceeds to governments partly as grants and partly as loans based mostly on nationwide want.