Our World-Struck by the Pandemic

STRUCK BY THE PANDEMIC
Daniel Kaddik
Executive Director of
the European Liberal
Forum
OUR WORLD | MAY 2020
during the Corona crisis. After all, it is a
question of life or death at worst, and a
question of economic survival at best.
Some national governments are exploiting
this to strengthen their position in an
unprecedented way and at the expense of
democracy. Hungarian Prime Minister Victor
Orbán has been given quasi-authoritarian
powers by the parliament for an unlimited
time, and the Polish ruling party is pushing
through presidential elections in May,
while the ban of electoral rallies hinders
opposition candidates.
In stock markets, the bidder in a hostile
takeover is called a “black knight”, an
analogy that might be fitting here in the
context of democracies. Especially when
democratic institutions are marginalised out
of “necessity” and for the sake of “efficiency”.
The question remains as to who makes the
counteroffer as the “white knight” and what
they can do to avoid the trap of crisis and
the temptation of opportunity.
Everywhere across Europe, people
have largely supported and followed the
measures introduced by the executives.
They seem to be willing to cede their civil
liberties in lockdowns that have been widely
imposed. One can witness rising approval
ratings for governments regardless of their
track record in the fight against the virus
and regardless of whether they can be
classified as “populist” or not. The positive
side effect of this is that there is currently
less support for populists that are in
opposition. However, this phenomenon
should not be taken for granted and can
only be sustained if governments can limit
the economic and societal damage caused
by the virus. Otherwise, we will see populist
forces on the left and right on steroids at a
time when hardships for citizens become
overburdening.
For the EU, the current crisis is doubtlessly
existential. Corona has struck the core of the
EU’s economic project, the Single Market,
like an earthquake. National governments
responded by taking unilateral measures.
Within a few weeks, border controls were
reinstated across the Schengen area, the
free movement of persons was restricted,
and supply chains crumbled.
Despite the attack on the de facto core
of European integration, European leaders
have not been able to identify a way out of
the crisis yet. The visionary approach needed
for the EU to stick together must connect
the different strands of individual measures
to a bigger whole. This is especially important,
as there is a considerable risk that
diverse national reactions to the crisis will
increase divergence in the Euro area. In the
past, national decisions were often taken
without considering the cross-border impact.
The same is already happening in this
crisis, which poses the tremendous risk that
countries which are already strong could assume
a dominating position after the crisis.
At the same time, it is useless to lament a
lack of support for measures that would turn
the EU upside down. Nobody can expect
from the frugal governments of Northern
Europe to throw their principles overboard
from one day to another. Leadership
means exploiting what is possible, trying to
do the impossible, but not attempting the
illusionary.
The EU now needs a clear roadmap
for reconstruction. It is of little importance
whether it is called the Marshall Plan or the
Michel Plan. But it is vital to act decisively
and quickly. The roadmap also needs builtin
flexibility; it must avoid centralisation and
respect the principle of subsidiarity. Surely
the unemployment reinsurance SURE can
have a sunset clause in five years, giving
member states the chance to opt-out.
Beyond that, the EU’s remedy cannot be just
patching up holes – it is time to finally decide
what the EU should look like in the future.
It is hard to lead if you do not know where
you are going. Perhaps the Conference on
the Future of Europe could be a first – albeit
rather late – step in this direction, if it does
not end up as a mere communication tool.
Although the reputation of the EU and
of intra-European cooperation has already
been damaged considerably in Italy and
Spain, it is not too late. Is there a white knight
in sight? The fragmented polycentricity of
power between the European Commission,
the European Council and the Franco-
German tandem makes it seem unlikely
that a single white knight will be found.
But European cooperation could itself still
be the white knight for all member states,
especially those most hit by the Coronavirus
pandemic.
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