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COVID-19: Why the EU is haunted by the euro crisis divisions

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The coronavirus does not recognise borders. But as the EU struggles with the catastrophe, the ideological borders of the euro crisis are back: north-south, creditor-debtor.

This time the stakes are higher. The problem during the financial crisis was the stability of banks, and the doom-loop created by banks being saddled with ever riskier sovereign debt which in turn threatened to push banks under.

The crisis was eventually alleviated by the ECB's pledge to do "whatever it takes" through bond-buying. This time around the pandemic is not just hitting banks.

It is devastating economic activity across the board. Whereas back in 2010 creditor countries could, with varying degrees of justification, blame bailout countries for their plight,

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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