A Framework for a European Economic Recovery After COVID-19

To slow the spread of COVID-19, European governments have adopted stringent containment measures. These have led to a severe recession, and policymakers in European Union countries are providing ample support to help companies cope with the immediate consequences. The basic approach has been to provide generous and indiscriminate emergency support to help cash-strapped firms meet their immediate liquidity needs. But even as economies tentatively reopen, countries face deep recessions and a more comprehensive strategy for the future needs to be designed.