How will the coronavirus affect the European Union?

Encyclopedia of Opinion

Question: How will the coronavirus affect the European Union?
Position1 of 3›: Economic consequences

This position examines the economic consequences of coronavirus for the EU. It argues that the pandemic is devastating economies, and that the bloc's cohesion will turn on its financial response — the Stability Mechanism and the ECB — even as divergent national responses heighten divisions.

Supporting arguments · 3

National economic responses are heightening divisions
The absence of a mechanism to allow EU countries to respond jointly, means policies are being enacted that are completely at odds with one another. These differences are widening differences between Eurozone economies.
The European Stability Mechanism will impact regional stability
The ESM was created after 2008 to provide loans to member states in financial crisis. However, the extremely high interest rates mean unless every state chooses to apply for these loans, interstate resentment will grow and destabilise Europe.
The actions of the European Central Bank will determine outcomes
Following the 2008 crisis, the ECB was a stabilising influence for Eurozone nations, which reduced the impact of the crash. If it can do the same after the coronavirus, it will bring the region closer together.