The Netherlands, and more specifically its Finance Minister Hoekstra, has taken up the anger of Italy and Spain by showing too little solidarity with both of these countries, which were seriously affected by the corona crisis. The wishes for unconditional financing of debts incurred in the crisis of these countries were not met. This article indicates how EU-guaranteed corona bonds could combine solidarity and prudent debt financing in this crisis. By means of a funds which is to be regarded as kind of collective ex-post insurance with clear conditions, solidarity between EU members in the fight against the virus can be obtained without losing much of the economic rationale of prudent debt policy.
|Translated title of the contribution||Corona bonds as collective European insurance against Covid-19|
|Media of output||Online|
|Publication status||Published - 6 May 2020|