Business & Leadership

Further EU integration reliant on joint Covid-19 effort, says Italian central bank

It is vital that EU member states co-ordinate their response to the Covid-19 crisis in order to develop solidarity and ensure the possibility of deeper economic and political integration in the future, according to the Italian central bank.

© Leaders League

It is vital that EU member states co-ordinate their response to the Covid-19 crisis in order to develop solidarity and ensure the possibility of deeper economic and political integration in the future, according to the Italian central bank.


In an article entitled ‘The case for coordinated COVID-19 response: No country is an island’, reserachers from Banca D’Italia said: “In the absence of coordinated containment measures, the most likely outcome is the worst of both worlds: preventable loss of lives and of GDP. Lack of coordination [between EU member states] might also lead to erosion of trust between countries, precipitating a persistent reduction in economic openness far in excess than that implied by short-term coordinated reductions in activity and mobility.”


Italy has suffered from the coronavirus more than any other European nation, with more than 74,000 cases and more than 7,500 fatalities.


The Banca D’Italia article argued that a Europe-wide – or, at least, an EU-wide – simultaneous lockdown was the only option. “Business-as-usual policies, all human cost aside, would not be politically sustainable in democracies where information is free, the article said. “The case for containment is equally urgent everywhere and the apparently different case-fatality rates across demographically comparable locations should not mislead policymakers.” The article said medical literature shows that, this early into an outbreak, this [apparently different case fertility rates] is, in part, a “statistical effect due to onset-to-outcome delay, i.e. the time lag between falling ill and either recovery or death, as well as to wide differences in the extent of testing being conducted and, as a result, of contagion underreporting.”


The article concluded that, if EU member states manage to unite their efforts in avoiding a “common bad”, their cooperation “might gain momentum and they might then be able to endow the Union with the crucial common good of a more complete and effective governance”. It continued: “If instead they fail on the first basic front, hopes for a deeper economic and political integration might be doomed for a long time.”


Earlier, this week it was reported that the German region of Saxony is offering the services of its hospitals to Italian coronavirus victims.

 

To read the Banca D’Italia article, click here

interview

Accenture's CEO and CFO interview by Leaders League Group

About us

Download