At the onset of the pandemic, in March 2020, there was a short period of significant stress on financial markets – reflecting the global and unexpected nature of the coronavirus shock. The decline in global GDP (gross domestic product) in 2020 happened simultaneously across the globe. This differed from the global financial crisis, which mainly affected advanced economies.
Furthermore, the need for policy-makers to foster flexibility and convergence and for national fiscal policy to act responsibly must be taken seriously. The development of new panEuropean institutions is also desirable, but as a complement to – not as a substitute for – policy action at the national level.