The corona crisis has led governments to take extraordinary budgetary measures to avoid an implosion of the economy. This is likely to lead to permanent increases in government debt levels. The most severely hit countries face the legacy of unsustainable debt levels that will trigger new sovereign debt crises in the future. The first best solution would be to issue Corona (Euro)bonds that aim at spreading the cost of the crisis over all member countries. If that is not possible, the ECB should step in and monetise the Corona-induced government debt. As for the legal implications: “Salus populi suprema lex”.
This debate will be held online and will be followed by a Q&A session via ZOOM.us.
Speakers: Paul de Grauwe (LSE and KUL and CEPS) and Daniel Gros (CEPS and Berkeley)
Moderated by Cinzia Alcidi. CEPS
Instructions: This webinar will be hosted by CEPS on ZOOM.us. To join, simply click on the following link when the event starts: https://zoom.us/j/284787017. You will be able to ask questions using the Q&A option in ZOOM. If you have any questions, please email info@ceps.eu.
