It is certainly true that today’s crisis is characterized by a simultaneous supply and demand shock /Wolfgang Münchau, FT, 27 April 2020/. But it is not the EU’s late and inefficient response to the crisis that matters, it is the lack of a complete U-turn of economic policies that would keep the EU out in the dark in the 2020s.
Behind the weak response we find all the earlier elements of misguided economic policies of the past decade. The lack of a complete overhaul of taxation in the member states, the missing giant EU-wide infrastructure projects, the absence of digital transformation, the shy-away attitude to reforming the Eurozone are all the real causes of the laggard position of the EU in global competition.
Governor Matolcsy, MNB, the Central Bank of Hungary