The End of the Euro and the EU

Economists Predict Potential End of the Euro Due to Coronavirus

It is a sad testimony to the inadequate response of the EU to Italy’s plight that after being refused help they turned to Russia for emergency medical equipment.

Two economics experts have predicted that the Chinese coronavirus could lead to the end of the euro currency — and the potential end of the European Union itself.

Belgian economist Professor Paul De Grauwe said that if the European Union does not show solidarity with member-states like Italy that have been hit hardest by the coronavirus, “the whole European project will disappear.”

He went on to advocate for the creation of “coronabonds,” a financial tool previously known as eurobonds, to help share the economic risk to countries affected by the virus.

Coronabonds have been advocated by several countries, including Italy, as well as European Central Bank (ECB) president Christine Lagarde — but have been largely opposed by richer countries like Germany and the Netherlands.

According to Professor De Grauwe, countries like the Netherlands “live on another planet”, adding: “If I were Italian and if I saw that other countries are not willing to help Italy, I would question membership in the Union.”