However, it is not monetary or fiscal policy that will kill the virus. Economic measures, whether monetary or budgetary in nature, are absolutely necessary to mitigate the economic and social effects that will be quite large. Now the solution is beyond the economic and financial realm: it’s in the victory over the pandemic, either in its containment or by the discovery of effective therapies and vaccines.Įxp: But until then the economy has stopped. This point is relevant because in the financial and sovereign debt crisis, the solution had to be economic and financial. It’s a crisis that begins with a pandemic, which generates a crisis in the real economy, with a sudden and violent destruction of value, and then takes on financial aspects. But there is a fundamental difference: this is not a financial crisis like the one in 2008, which afterwards passed on to the real economy. José Manuel Barroso: In my opinion, this economic crisis will be even worse than the one that began in 2008. Have European leaders learned something from it, or should we prepare for a worse crisis? Former Portuguese Prime Minister - now chairman at Goldman Sachs - assesses the crisis from his 10-year experience as president of the European Commission: he’s in favor of Eurobonds, thinks there has to be a coordinated response from the European Union to this crisis, but believes that right now debt is not important: what’s important is containing the virus and responding to the humanitarian emergency.Įxpresso: You were at the forefront of the 2008 financial crisis as President of the European Commission. Closed in his London home, in self-isolation since March 13th, José Manuel Barroso spoke with Expresso this Friday by phone and video call.
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