https://www.nationalreview.com/2020/04/europes-moment-of-truth/
The COVID-19 crisis has pushed the euro zone to its breaking point.
O n April 16, responding to the COVID-19 crisis, French president Emmanuel Macron said Europe had arrived at its “moment of truth.” Economics is a “moral science,” he insisted. The euro zone’s financially stronger nations, therefore, have an obligation to look after their weakest partners by establishing a fund that “could issue common debt backed by a common guarantee.” It was the expected high-minded call for a technocratic solution, and it dodged the fundamental underlying political question. In a euro zone still based on nation-states, the strong, broadly speaking, ‘northern’ members have always asked why they should aid their weaker southern counterparts. Today, leaders of those northern states are being called to help the southern members on a scale never before contemplated. Not surprisingly, when they all met in a videoconference on April 23, they ignored Macron.
Europe is indeed at a moment of truth, but European politicians have yet to grasp how bleak that truth really is. All economic forecasts today are too optimistic. Even the strongest European countries will have their hands full coping with domestic economic distress. In such conditions, everyone is on his own. Cooperation is hard enough within federal states, as recent tensions in Germany and even more so the U.S. demonstrate. Cooperation on the scale required within the euro zone, based as it is on the E.U.’s confederation of nation-states, would require a remarkable political revolution.
All economic forecasts are optimistic