The issue of recovery funds shapes up as an acid test of commitment to the union
Graham Watson's insight:
I can't believe I missed this earlier in the week. It's a reflection on the future of the EU which wonders whether coronavirus is its ultimate test of unity. For many years, many people have wondered whether for the EU to remain unified there would need to be fiscal transfers from richer to poorer states.
In this case, the question is about whether the issue should attempt to mitigate the crisis by issuing so-called coronabonds. However, rich states, like the Netherlands, Germany, Austria and Finland are opposed to the scheme because they feel that they are picking up the tab for less prudent members such as Italy and Spain.
In many respects, it's a re-run of the debate over fiscal transfers from the core to the periphery that was a feature of the Greek crisis.
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