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Table 1 The role of Corona-related policy practices/suggestions in combatting economic polarisation in the Eurozone based on Kapeller et al. (2019)

From: Pandemic pushes polarisation: the Corona crisis and macroeconomic divergence in the Eurozone

Policy area Policy suggestions Relation to actual policies induced by the Corona crisis
Strengthen European Values Reduce competition and increase cooperation between EU member states Not yet, but potentially lurking in the background of current discussions
Base trade policies on human rights considerations (“civilised trade”) None
Achieve greater equality in earned incomes Partly visible efforts on domestic level (increased unemployment benefits, suspension of dividends)
Thinking the Eurozone through Common monetary and fiscal policy Creation of new credit lines in ESM, discussion of joint financing procedures
Reorient monetary policy towards greater prosperity Failure to do so significantly limits instruments and impact of the ECB
Reregulating financial markets None
Ending the European race for the best location Promoting sustainable industries and regional development by industrial policies Unspecific references to green and digital transitions and building “European industrial champions”
Coordinate tax policy and combat tax avoidance None
Avoiding permanent current account imbalances None
Rethinking the Economy Progress vs. GDP: new concepts of prosperity None
Actively govern future socio-economic challenges (climate, ecology, automatisation etc.) Unspecific references to green and digital transitions
Explore the trade-off between welfare in time and welfare in goods to foster a sustainable transformation None