A new look for Europe after Covid… We are all facing tough times and situations with a pandemic in our daily life. Some of us have to cancel travels, others struggle with executing their daily plans our plans interrupted, most of the people won’t even go out of their homes. It’s now clear the Covid-19 pandemic will have major, long-term consequences. In the European Union, the very foundations of European integration are being questioned. 

New look for Europe after Covid

 In the series- “The World after Coronavirus” Ms. Vivien Schmidt shares her opinion on what Europe might look like in the near future. 

So, what would the world look like, or what would Europe look like (Ms.Schmidt speaking) after the Coronavirus. Actually, I have 3 scenarios: 

1. Bright scenario: The EU does more and very well the things that it has already been doing. 

2. Darker scenario: It would be that the EU does very little and does it badly which I hope will not happen. 

3. Grey scenario: This is where it does just enough, the muddling through. 

So, many might think that the “grey scenario” is what will happen and this is most likely, yes. But I prefer to look on the bright side, and what would that be? It would be that the EU deepens its integration even more in all the necessary ways without deepening too much, because issues of national sovereignty, democracy remain in play. But it needs to integrate more to fight the pandemic, but not to justify the “death” pandemic.

It also needs to address the other challenges it faces. There is still the refugee migrant crisis, where nothing much has been done yet. Security – the EU is in a very bad neighborhood and that also links to the migrant and refugee crisis. Because not only can we talk about wars in the Middle East but we have also got the continent of Africa, where it is predicted of exploding demographics and issues of water, of desertification which leads to climate change. And climate change remains the biggest crisis facing not just Europe, but the world. 

What else can you share with us on the subject?

Finally, the pandemic on its own leaving aside these other things is going to bring with it this massive economic crisis. Fortunately, or unfortunately, this is a symmetrical shock. All countries are affected by the pandemic in terms of physical health, but also economic health. And so, the question becomes how do they emerge better? How the EU solves the problem of the pandemic economic crisis and also pulls itself out of the Eurozone crisis, which has continued. 

 The European Central Bank, which has gone very far with the Eurozone crisis was seen as “the hero” essentially of the crisis, could do more. ECB (European Central Bank) is doing quantitative easing now; it could do even bigger easing or “helicopter money”. It is a term that people use which is essentially printing money and sending it out to people. 1200 euros to every citizen in need. National governments are already doing this, but that money is going to run out and that is when ECB would need to step in. The problem is that, so far, the major responses have been at the national level and there is a resistance. 

What about the “darker side”, Vivien? (New look for Europe after Covid)

  – There is a security crisis. If a national focus trumps the EU and EU common response, we have already seen that in terms of closed borders on medical emergency supplies. Italy asked for ventilators and Germany and France said: “Sorry guys, we need them for ourselves”. 

So, if the ECB doesn’t act, if the Commission bungles the response with what few responses it has, because of popular citizen anger in different countries. If you get populist, nationalist elected which is quite possible, then it is even worse. Because the economic crisis that will be a recession could become depression. If Italy goes bankrupt, it reneges on its loans, it is out of the Eurozone. And minute Italy is out of the Eurozone, the Eurozone is most likely to break apart because it is a major player in that. And then, the EU could fall apart. 
 

Is this your worst fear? 

        I would like to hope that it is a more functional and effective EU, but given recent history, I fear that it is going to be a “gray scenario”. That requires leadership, and unfortunately, we haven’t had enough of it lately. 

This was an interview with Ms. Vivien Schmidt, going through some major problems about the future of Europe in the run of Coronavirus. We have to agree with her that Europe and in particular the European Union has to do more than before, to fight the disease together, we need the ECB to act and resolve this major problem once and forever. In Europe, we have to integrate more and more to overcome the crisis. We need to act together, be strong together, and emerge as winners at the end.