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The Eurogroup fails Europe once again. Brace for a hideous EU recession

Summary:
The Eurogroup met yesterday, Monday 16th March, to hammer out its coordinated fiscal response to the massive recession already in progress following the lockdown of much of Europe’s society. The task they faced is enormous: If sales, tourism, services etc. fall by 50% for just one month (which is certain), and then by 25% for only two more months (i.e. the best-case scenario), then annual growth will be -10%. Across Europe! So, what was the Eurogroup’s duty to announce? An immediate massive fiscal boost, its purpose being to reassure people that they will not be poorer. E.g. the government of Hong Kong that ploughed billion immediately into the economy by ordering the tax office to credit every household’s

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Yanis Varoufakis
An accidental economist Let me begin with a confession: I am a Professor of Economics who has never really trained as an economist. But let’s take things one at a time.

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