A Fiscal Response to COVID-19: What are the Options?
EU Member States are putting place a series of extraordinary and unprecedented fiscal measures to support their economies and to combat the ravaging effects of COVID-19. In this scenario, the Florence School of Banking and Finance organised on 10 April 2020 an online debate to assess those measures and to identify their medium and long-term implications.
In this online debate, chaired and moderated by Elena Carletti (Bocconi University and Florence School of Banking and Finance, European University Institute), speakers assessed the measures implemented individually by the different national governments, analysed the coordination instruments available at the European level, and debated which new instruments for financial assistance could be considered in the EU.
The debate was opened by introductory statements by Guido Tabellini (Intesa Sanpaolo Chair in Political Economics at Bocconi University), Jean Pisani-Ferry (Tommaso Padoa Schioppa Chair holder at the European University Institute and a Senior Fellow at Bruegel, Brussels) and Clemens Fuest (President of the ifo Institute, Professor for Economics and Public Finance at the Ludwig Maximilian University of Munich), who discussed the domestic macroeconomic impact of tthe measures undertake in their respective countries, making a link between the sanitary and the fiscal and economic measures. Then, Vítor Constâncio (former Vice-President of the European Central Bank and President of the Board at the Lisbon School of Economics and Management) addressed the response at the European level.
In the discussion among speakers, participants commented on the European measures, reviewing also the Eurogroup meeting which took place on the day before, and addressing the interplay between the national and the European measures and also the potential negative effects stemming from divergences in a single market and monetary union.