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Crises, Immigration and the Labor Market: Learning from Past Mistakes

Anthony Edo and Camilo Umana (EconPol Europe, CEPII)

Periods of crisis increase xenophobic outbursts and anti-immigrant sentiments, which can lead policy makers to target migrant workers in the hope of quickly restoring labor demand for natives - particularly when health crises are the root cause. But curbing the rise of unemployment by restricting access to the labor market and encouraging the departure of foreign workers is ineffective. In times of crisis, macroeconomic policies to stabilize economic activity and stimulate recovery are crucial to stop the rise in unemployment.

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EU Solidarity in Exceptional Times: Corona Transfers Instead of Coronabonds

Daniel Gros (EconPol Europe, CEPS)

Does the coronavirus crisis call for solidarity within the EU, or within the euro area? Daniel Gros (EconPol Europe, CEPS) argues that being hit by an unforeseen epidemic has nothing to do with euro area membership and the present situation is a case which requires solidarity at EU level. And, he says, there's a plausible and simple way to organise a real expression of EU solidarity without engaging in any large-scale financial transactions.

This article first appeared on VoxEU.org: https://voxeu.org/article/corona-transfers-instead-coronabonds

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One Europe, One Future

António Afonso, ISEG (EconPol Europe; Lisbon School of Economics and Management, Universidade de Lisboa)

In the current context of difficult times across Europe and in the World, there are relevant issues on which many people might agree, regardless of their political, ideological or theoretical views. António Afonso examines the options available and asks for compromise.

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How Corporate Debt Burdens Threaten the Economic Recovery After COVID-19 and Why Planning for Debt Restructuring Should Start Now

Bo Becker (Stockholm School of Economics, CEPR & ECGI), Ulrich Hege (EconPol Europe, Toulouse School of Economics, ECGI), Pierre Mella-Barral (Toulouse Business School)

EconPol Europe's Ulrich Hege (Toulouse School of Economics, ECGI) and co-authors Bo Becker (Stockholm School of Economics, CEPR & ECGI) and Pierre Mella-Barral (Toulouse Business School) discuss the economic risks of COVID-19 and the increasingly plausible steep protraction, examine the mitigating support programs governments are putting into place for households and firms, and explain why planning for debt structuring should start now.

This article first appeared on VoxEU.org https://voxeu.org/article/corporate-debt-burdens-threaten-economic-recovery-after-covid-19

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This Time is Different

Daniel Gros (EconPol Europe; Director, CEPS)

A recession is now inevitable, says Daniel Gros (CEPS, EconPol Europe), but it can be followed by a vigorous recovery. The memory of the financial crisis of 2008/9 is fresh enough to ensure the combined efforts of central bankers and governments can keep financial markets working and prevent mass bankruptcies. Policymakers at every level are using every lever at their disposal to avoid a repeat of the freezing of financial markets, which was so damaging ten years ago. The lesson was learned and is now being applied at a vast scale throughout Europe and the US. Containing the virus and protecting public health is where Western societies have to learn and adapt quickly.

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