Courage instead of money

Financing via Brussels could relieve the ECB, which is viewed critically in Germany. And yet Ursula von der Leyen’s 750 billion euro package must be criticized.

Ursula von der Leyen this Wednesday in the EU Parliament in Brussels.

Dhe Europe, whose countries suddenly kept their distance from each other in a sobering way during the Corona crisis, is to be brought together with a lot of money. Because, in the current situation, the German economy is becoming aware of the dependency on the well-being of European sales markets, which has occasionally been suppressed during the euro crisis, and because politicians recognize that a losing Europe may not be an attractive place in view of the growing tensions between America and China, There is a lot of approval in Germany for a European reconstruction program. Financing via Brussels could also relieve the ECB, which is viewed critically in Germany.

And yet Ursula von der Leyen’s € 750 billion package has to be criticized just as much as Merkel and Macron’s 500 billion project. While expansionary monetary and fiscal policies are appropriate in an acute crisis, there is no need for “reconstruction”.

Fortunately, there is no damage to housing, factories or infrastructure that is comparable to war-related destruction. At best, the aim is to finance an urgently needed modernization of the economy regardless of the epidemic, which some countries could not afford in the past and others, including Germany, did not want to.

Such a project required strict supervision of the funds used. You don’t have to be a eurosceptic to have little hope here. In addition, borrowing by Brussels would only be justifiable if the funds were passed on as loans and not as grants. When it comes to loans, it is argued that some countries are unable to repay them anyway.

But then the logical solution would be a haircut – an undoubtedly complicated undertaking not without risks, but which in the end could have a liberating effect for the countries concerned and relieve both Brussels and the ECB. In order to solve its problems together, Europe needs more courage instead of more and more money.