POLICY COMPASS

Between “Hamilton” and “Jefferson” Moment: The EU Response To Covid-19

By Brunello Rosa

12 May 2020

In this paper we discuss:

• The European Commission's latest forecasts for the EZ and the EU;
• The national fiscal policy response;
• The European response so far: ECB, EIB, SURE, ESM and regulatory easing;
• The characteristics of the upcoming "Recovery Fund";
• Why the Recovery Fund will represent a "common" but not a "joint" response; and
• The market implications of all the above.

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