The Financial Times picks up Lucas Guttenberg’s call to rethink the ESM in light of the current crisis.
When the pandemic hit European economies, the European stability mechanism (ESM) was equipped with cheap loans. Yet, governments across the EU are still reluctant to use them. In its current design, the ESM is hence “political unviable”, Lucas Guttenberg argues in his latest policy brief taken up by the Financial Times’ Brussels Briefing. A redesign of the mechanism should account for the “mistrust between creditor and debtor countries” - A consequence of the financial crisis during which the ESM originated.