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Corona Pandemic Responses – Compilation of information materials and sources

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Governments, policy institutions, government agencies, authorities and regulators have taken many actions at various levels – often simultaneously, often different, often uncoordinated – to urgently address the economic and financial effects of the Coronavirus pandemic. To shed light on related measures and provide some information on the topic we listed below some first links to various sources such as information, publications and assessments for some orientation and as a basis for research and opinion building.

Financial Risk and Stability Network
19 May 2020
Coronavirus pandemic – information sources

CORONAVIRUS PANDEMIC REACTIONS
Compilation of information materials, publications and online coverage
(at present > 80 links)

Please not that these information materials are a current random choice and not meant to be a comprehensive overview. The sources and links listed below are not a preference or bias to any of the information providers. In additon, these information are only a snapshot at the present juncture – we may update the information regularly in the next months. The information provided is intended as an indication for all those who are doing research or other scientific as well as editorial and political work on this topic and related impacts and effects. To this end, we refer as well to the FSC Research Workshop and the Call for Policy Contribution Proposals.


A source of helpful materials is available on the websites of the Yale School of Management Program on Financial Stability
YSOM Progam on Financial Stability
YSOM Progam on Financial Stability – COVID-19 crisis
YSOM Progam on Financial Stability – Systemic Risk Blog


Better Markets
Tracker of Regulatory Agencies Coronavirus Emergency Responses
21.04.2020 (launch of the tracker)
The financial regulators have taken so many actions in response to the economic and financial impacts of the coronavirus crisis that it is hard to keep up. That is why Better Markets has created the Tracker of Regulatory Agencies Coronavirus Emergency Responses. The tracker is intended to catalogue every Coronavirus-related action taken by the financial regulatory agencies in the United States.

All posted information in chronological order (latest first)

European Commission
European Commission’s action on coronavirus
Corona crisis EU economic response
The European Commission says that its first priority is the health of our citizens. At the same time, the coronavirus outbreak is a major shock for the European and global economies. Member States have already adopted or are adopting budgetary liquidity and policy measures to increase the capacity of their health systems and provide relief to those citizens and sectors that are particularly impacted.


European Parliament Think Tank

19.05.2020
Briefing: The economy and coronavirus: Weekly Picks (pdf)
The paper provides a summary of some recent analyses of the macroeconomic effects of the coronavirus and some policy recommendations made in the public domain to mitigate these negative effects.

European Parliament Think Tank
15.05.2020
Briefing: Banking Union: Corona crisis effects (pdf)
The corona crisis has significant effects on many banks in the Banking Union. To support the Members of the Banking Union Working Group, the following briefing reports on observations made and actions taken by supervisory authorities, credit rating agencies, banking federations, or other industry experts, in order to point to relevant developments in the banking sector. The briefing will be updated on a bi-weekly basis, unless relevant developments require otherwise.

European Parliament Think Tank (Reserach Service)
15.05.2020
Which ‘new normal’ after coronavirus? [What Think Tanks are thinking] (pdf)
Many countries are now beginning to relax their strict confinement measures as the infection, hospitalisation and death rates from the coronavirus all fall. However, the impact of such moves is being monitored very closely, in order to try to forestall any second wave of infection. Meanwhile, debate intensifies about whether people’s previous life-styles and working practices, especially in richer industrialised countries, will be radically changed and/or remain sustainable in the emerging ‘new normal‘.

ESRB
14.05.2020
The General Board of the European Systemic Risk Board takes first set of actions to address the coronavirus emergency at its extraordinary meeting on 6 May 2020
The Board discussed a first set of actions in five priority areas identified to address the impact of the coronavirus (COVID-19) emergency on the financial system from a macroprudential perspective.

BIS
13.05.2020
Green Swan 2 – Climate change and Covid-19: reflections on efficiency versus resilience
by Luiz Awazu Pereira da Silva, based on remarks at the OECD Chief Economist Talk Series, Paris, 23 April 2020 and a Research Webinar at the BIS, 13 May 2020.

European Parliament Think Tank
12.05.2020
Briefing: The economy and coronavirus: Weekly Picks (pdf)
The paper provides a summary of some recent analyses of the macroeconomic effects of the coronavirus and some policy recommendations made in the public domain to mitigate these negative effects.

European Commission
11.05.2020
Based on the Eurogroup report of 9 April 2020, the Commission has prepared a draft Response Plan template which responds to Articles 13(3) and 14(2) of the ESM Treaty. It includes the standardised terms that would be applicable to all euro area Member States that would access the Pandemic Crisis Support.
Draft Template for the Response Plan pursuant to Articles 13(3) and 14(2) ESM Treaty of 11.05.2020 (pdf)
Pandemic Crisis Support – Eligibility assessment of 07.05.2020 (pdf)

European Council
08.05.2020
Eurogroup Statement on the Pandemic Crisis Support

European Commission
08.05.2020
State aid: Commission expands Temporary Framework to recapitalisation and subordinated debt measures to further support the economy in the context of the coronavirus outbreak
Amendment to the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak (pdf)

European Parliament Think Tank (Research Service)
Coronavirus: From lock-down to de-confinement, and beyond [What Think Tanks are thinking] (pdf)
06.05.2020
A number of European countries have started relaxing the lock-downs put in place to slow the spread of the lethal coronavirus. The goal is to begin the process of reviving their economies, which have been hit very hard by the crisis, without prompting a further upsurge in the pandemic. While still assessing the immediate impacts of the crisis and actively examining various ‘exit strategies’, analysts are also shifting their focus towards identifying the medium- and long-term legacy of the crisis, the likely shape of the ‘world after coronavirus’, and the best policies for the future. The note offers links to recent commentaries and reports from international think tanks on coronavirus and related issues.

Deutsche Welle
05.05.2020
Top German court says ECB bond buying scheme partially contravenes the law
Germany’s constitutional court has ruled that the European Central Bank’s stimulus program partly contravenes German law, because neither the German government nor parliament signs off on the spending.

BBC
05.05.2020
German court criticises European Central Bank crisis bond-buying
Germany’s top court has ruled that the European Central Bank’s mass bond-buying to stabilise the eurozone partly violates the German constitution.

Bloomberg
05.05.2020
ECB Must Justify QE Bond Purchase Program, German Judges Rule

ECB
30.04.2020
ECB announces new pandemic emergency longer-term refinancing operations
Series of additional longer-term refinancing operations to ensure sufficient liquidity and smooth money market conditions during the pandemic period. Operations allotted on a near monthly basis maturing in the third quarter of 2021.

European Parliament Think Tank (Reserach Service)
Coronavirus: Implications for the EU [What Think Tanks are thinking] (pdf)
28.04.2020
The coronavirus pandemic poses a serious challenge to the European Union, arguably testing at once its solidarity, resilience, capacity and even relevance. Some analysts see the current crisis as an ‘existential’ threat to the Union, whilst others sense it to be a significant opportunity to assert the need for collective solutions and to build greater systemic strength for the future. A lively debate has broken out among thinkers and commentators about the implications of the crisis for the future of European integration, the policy priorities of the Union, and the capabilities and resources of its institutions. The note offers links to commentaries and reports from international think tanks on the challenges of the coronavirus for the EU and related issues. The papers gathered have been written before the European Council video-conference of 23 April 2020.

European Commission
28.04.2020
Banking package to facilitate lending to households and businesses in the EU
The European Commission adopted a banking package aimed at facilitating bank lending to support the economy and help mitigate the economic impact of the Coronavirus. The package encourages banks and supervisory bodies to apply the EU’s accounting and prudential rules more flexibly, and proposes targeted amendments to EU banking rules (CRR).

European Parliament Think Tank (Research Service)
27.04.2020
Briefing: The economy and coronavirus: weekly picks (pdf)
The paper provides a summary of some recent analyses of the macroeconomic effects of the coronavirus and some policy recommendations made in the public domain to mitigate these negative effects.

CEPR policy portal VOX
25.04.2020
Corona and Financial Stability 4.0: Implementing a European Pandemic Equity Fund
by Arnoud Boot, Elena Carletti, Hans‐Helmut Kotz, Jan Pieter Krahnen, Loriana Pelizzon, Marti Subrahmanyam
The involvement of the EU in fighting the detrimental consequences of the Covid crisis has to be increased. This column expands on an earlier proposal for a European Pandemic Equity Fund – a programme of government assistance for firms hurt by the crisis in the EU – and discusses the principles and conditions relevant for the operationalisation of such a fund.

BBC
23.04.2020
Coronavirus: Huge economic rescue plan agreed by EU leaders
A plan for injecting billions of euros of emergency aid into Europe’s battered economies has been agreed by EU heads.

Reuters
23.04.2020
EU lays out trillion euro escape route from coronavirus pandemic
European Union leaders agreed on Thursday to build a trillion euro emergency fund to help recover from the coronavirus pandemic, avoiding another all-night bust-up but leaving divisive details until the summer.

Politico
23.04.2020
EU leaders back budget reboot for coronavirus recovery
European Commission tasked with drawing up economic rescue plan but big questions remain unresolved.

New York Times
23.04.2020
Merkel Open to Big EU Recovery Fund but Needs More Clarity First

The Guardian
23.04.2020
Coronavirus delivers a ‘moment of truth’ on the meaning of the EU
The issue of recovery funds shapes up as an acid test of commitment to the union

Financial Times
23.04.2020
A bluffer’s guide to the EU’s coronavirus response

Deutsche Welle
23.04.2020
Coronavirus latest: EU leaders want large recovery fund, stall on details
An EU summit made previously “unthinkable” progress on the economic response to the COVID-19 crisis, according to Italy’s PM. But the leaders are still at odds over several details.

European Commission
22.04.2020
Coronavirus: Commission proposes 3 billion Euro macro-financial assistance package to support ten neighbouring countries

European Banking Authority
22.04.2020
EBA provides further guidance on the use of flexibility in relation to COVID-19 and calls for heightened attention to risks
Following up on its strategic communications of 12th, 25th, 31st March and 2nd April, the European Banking Authority provides today further clarity on how additional flexibility will guide supervisory approaches in relation to market risk, the Supervisory Review and Evaluation Process, recovery planning, digital operational resilience and ICT risk and securitisation.

European Parliament Think Tank (Reserach Service)
21.04.2020
Briefing:  The economy and coronavirus: weekly picks (pdf)
Ahead of the Heads of State and Government meeting on 23 April, the ‘Weekly Picks’ provides a selection of positions taken by EU institutions (or their representatives) on an EU recovery fund. It covers as well other recent proposals made in the public domain related to the COVID 19 crisis.

CEPS
21.04.2020
How is EU cooperation on the Covid-19 crisis perceived in member states?
by Sophia Russack and Steven Blockmans
Even the most optimistic of observers recognise the coronavirus pandemic as one of the greatest challenges the EU has ever faced to its capacity to manage crises, muster solidarity and demonstrate supranational added value. Drawing on the expertise of researchers in the EPIN network, Sophia Russack and Steven Blockmans asked how EU cooperation was perceived in their respective national contexts, via an expert poll. Nineteen institutes from 15 different countries, plus Iceland, responded to their call. The introduction and analysis below reflects the unique insights that were gleaned from this exercise.

International Monetary Fund
20.04.2020
Kristalina Georgieva: A Global Crisis Like No Other Needs a Global Response Like No Other

Bloomberg
20.04.2020
Europe’s Revived Idea of Bad Bank Faces German-Led Resistance

Irish Times
20.04.2020
ECB pushes for euro zone bad bank to clean up soured loans
Move is expected to be resisted in some quarters as it breaches state aid rules

Financial Times
19.04.2020
ECB pushes for eurozone bad bank to clean up soured loans
Brussels opposes idea despite fears the pandemic will trigger new NPL surge

European Parliament news
17.04.2020
COVID-19: MEPs call for massive recovery package and Coronavirus Solidarity Fund
MEPs want to see a massive recovery package to support the European economy after the COVID-19 crisis, including recovery bonds guaranteed by the EU budget.

European Commission
17.04.2020
State aid rules and coronavirus
The outbreak of a novel virus infection has a significant economic impact. Several Member States are considering or have already announced support measures for citizens or companies. Some support measures may entail State aid within the meaning of Article 107(1) TFEU.

European Banking Authority
17.04.2020
EBA agrees with the European Commission’s amendments to standards on risk weights to specialised lending exposures
The European Banking Authority (EBA) published an Opinion in response to the European Commission’s intention to amend the EBA’s final draft regulatory technical standards on assigning risk weights to specialised lending exposures before endorsing them.

Bruegel
16.04.2020
Is the United States reneging on international financial standards?
by Nicolas Véron
The new Fed rule is a material breach of Basel III, a new development as the US had hitherto been the accord’s main champion. This action undermines the global order without being ostensibly justified by narrower considerations of US national interest.

European Central Bank
16.04.2020
ECB Banking Supervision provides temporary relief for capital requirements for market risk

Financial Stability Board
15.04.2020
Report on international cooperation to address the financial stability implications of COVID-19

SAFE
14.04.2020
Research-based policy advice in the corona crisis – the SAFE Pandemic Policy Team
In the publication series “Corona and financial stability”, a team of international financial economists around the Leibniz Institute SAFE deals with the effects of the corona virus on financial stability. In three policy publications so far they have concluded that, in addition to national measures, a coordinated approach at the European level is essential in order to ensure confidence in the stability of the financial markets.
Policy Letter No. 78:  The Coronavirus and Financial Stability
Policy Letter No. 79:  Corona and Financial Stability 2.0: Act jointly now, but also think about tomorrow
Policy Letter No. 81:  Corona and Financial Stability 3.0: Try equity – risk sharing for companies, large and small

Politico
13.04.2020
Inside the global race to prevent another depression
by Ben White, Victoria Guida and Matthew Karnitschnig
The coronavirus crisis could transform economic behavior for decades.

World Economic Forum
10.04.2020
The EU has agreed a coronavirus rescue plan worth half a trillion euros

Bloomberg
10.04.2020
EU Finance Chiefs Dodge Coronabonds in $590 Billion Rescue

Council of the European Union
09.04.2020
Report on the comprehensive economic policy response to the COVID-19 pandemic

European Commission
09.04.2020
Commission Statement on consulting Member States on proposal to further expand State aid Temporary Framework to recapitalisation measures

NY Times
09.04.2020
E.U. Backs Half-Trillion Euro Stimulus, but Balks at Pooling Debt
While E.U. finance ministers approved a plan to spend 540 billion euros to lift their economies, they couldn’t agree to take the unprecedented step of issuing joint bonds.

European Commission
08.04.2020
Coronavirus: Commission and European Investment Fund (part of EIB Group) unlock 8 billion Euro in finance for 100,000 SMEs
The European Commission has unlocked €1 billion from the European Fund for Strategic Investments (EFSI) that will serve as a guarantee to the European Investment Fund (EIF), part of the European Investment Bank Group.

European Commission
08.04.2020
Coronavirus: Commission announces SURE proposal and mobilises all of its resources to protect lives and livelihoods
The Commission announced on 2 April that it is further increasing its response to the coronavirus by proposing to set up a 100 billion Euro solidarity instrument called SURE.

ECB
07.04.2020
ECB announces package of temporary collateral easing measures
ECB adopts an unprecedented set of collateral measures to mitigate the tightening of financial conditions across the euro area. Temporary increase in the Eurosystem’s risk tolerance in order to support credit to the economy. ECB eases the conditions for the use of credit claims as collateral. ECB adopts a general reduction of collateral valuation haircuts. Waiver to accept Greek sovereign debt instruments as collateral in Eurosystem credit operations. ECB will assess further measures to temporarily mitigate the effect on counterparties’ collateral availability from rating downgrades.

European Parliament Think Tank (Reserach Service)
06.04.2020
Briefing:  The economy and coronavirus: weekly picks (pdf)
The paper provides a summary of some recent analyses of the economic and financial effects of the coronavirus and some policy recommendations made in the public domain to mitigate these negative effects.

European Commission
06.04.2020
Policy measures taken against the spread and impact of the coronavirus (pdf)
Overview of the measures taken so far at the national level, presented by Member State

Institut Montaigne
06.04.2020
Preventing a Euro Crisis on Top of the Coronavirus Ordeal
by Eric Chaney and Lorenzo Codogno
The Covid-19 pandemic is sweeping around the globe. In most countries  governments had to impose lockdowns to allow healthcare infrastructures to cope with the disease and save lives, albeit  with dire economic consequences. It is too early to accurately evaluate the full economic impact of such policies, although estimates made by economists from private and public institutions suggest that the GDP of the euro area is likely to be about 10% lower this year than it would have been otherwise. At best, a gradual but significant recovery will follow, with downside risks depending on how effective confinement exit strategies are, and how resilient the supply side of economies has been during the lockdown.

CEPR policy portal VOX
05.04.2020
Sharing the fiscal burden of the crisis: A Pandemic Solidarity Instrument for the EU
by Sebastian Grund, Lucas Guttenberg, Christian Odendahl
To ensure that all EU countries can do what is necessary to fight the economic fallout of the pandemic, the fiscal costs of this crisis must be shared. This column proposes that the EU give member states €440 billion in grants to support health care, liquidity to the private sector, short-time work schemes and stimulus packages. The EU should raise the funds in bond markets backed by guarantees. It also shows how this is could work under EU law.

CEPR policy portal VOX
05.04.2020
COVID-19: OMT is second-best, but still welcome
by Lorenzo Codogno, Paul van den Noord
The emergency measures in place to absorb the COVID-19 shock need to be supplemented by OMT unless leaders agree to create a euro area safe asset and fiscal capacity. This column employs an empirically calibrated model to show that OMT is second-best to the creation of a safe asset and fiscal capacity at the centre, but would still be a powerful means to mitigate the economic impact of the crisis.

Bank for International Settlements
03.04.2020
Basel Committee sets out additional measures to alleviate the impact of Covid-19
Measures to reflect the impact of Covid-19

CEPR policy portal VOX
03.04.2020
Coronavirus and financial stability 3.0: Try equity – risk sharing for companies, large and small
by Arnoud Boot, Elena Carletti, Hans‐Helmut Kotz, Jan Pieter Krahnen, Loriana Pelizzon, Marti Subrahmanyam
COVID-19 is a disaster for many firms – especially small and medium-sized ones. This column proposes a scheme that could bring funding to firms quickly without increasing their leverage or default risk. The plan combines outright cash transfers with a temporary, elevated corporate profit tax at the firm level as a form of conditional payback. The implied equity-like payment structure has positive risk-sharing features for firms, without impinging on ownership structures. The proposal should be implemented at the European level to strengthen euro area resilience.

Financial Risk and Stability Network
02.04.2020
CORONA CRISIS: Solidarity Action Appeal
On the backdrop of the Corona crisis, Financial Risk and Stability Network drafted a solidarity action appeal letter to call for common bold support measures at EU and Euro area levels. The non-profit organisation calls scientists, experts and citizens to sign the appeal.

European Commission
02.04.2020
Proposal for a Decision of the European Parliament and of the Council on the mobilisation of the Contingency Margin in 2020 to provide emergency assistance to Member States and further reinforce the Union Civil Protection Mechanism/rescEU in response to the COVID-19 outbreak (pdf)

Council of the European Union
02.04.2020
Proposal for a Council Regulation amending Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 (pdf)

Irish Times
02.04.2020
Patrick Honohan: Preparing for post-pandemic financial reckoning
Governments will likely take control of some large firms to avoid disruption

ECB
02.04.2020
ECB extends review of its monetary policy strategy until mid-2021

Florence School of Banking and Finance
April 2020
Online lectures and seminars in the context of economic policy responses to the Coronavirus pandemic
To provide an in-depth assessment of the economic and financial impact of the COVID-19 epidemic, the Florence School of Banking and Finance is organising a series of online lectures, seminars and debates, aimed particularly at reviewing Europe’s economic policy response to the virus.

SUERF
April 2020
The range of different opinions and moods in Germany on collective ‘corona bonds’
Policy note by Ingobert Waltenberger

European Banking Authority
31.03.2020
EBA provides additional clarity on measures to mitigate the impact of COVID-19 on the banking sector

European Commission
30.03.2020
Coronavirus Response Investment Initiative adopted

European Commission
27.03.2020
Coronavirus: Commission Statement on consulting Member States on the proposal to extend State aid Temporary Framework

Bank for International Settlements
27.03.2020
Governors and Heads of Supervision announce deferral of Basel III implementation to increase operational capacity of banks and supervisors to respond to Covid-19

CEPR policy portal VOX
24.03.2020
Covid Perpetual Eurobonds: Jointly guaranteed and supported by the ECB
by Francesco Giavazzi, Guido Tabellini
This war-like shock will require very large fiscal support. Its financing cost should be distributed over several generations. This can be achieved by issuing irredeemable or very long maturity Eurobonds. They should be backed by the ECB to keep the financing burden low. This column argues that no institutional or legal constraints prevent this policy response. Prompt action is critical since allowing one crisis to morph into many could disrupt the European project, with far-reaching and unpredictable political implications.

CEPS
21.03.2020
ECB needs to finance coronavirus budget deficits
by Paul De Grauwe

CEPR policy portal VOX
21.03.2020
A proposal for a Covid Credit Line
by Agnès Bénassy-Quéré, Arnoud Boot, Antonio Fatás, Marcel Fratzscher, Clemens Fuest, Francesco Giavazzi, Ramon Marimon, Philippe Martin, Jean Pisani-Ferry, Lucrezia Reichlin, Dirk Schoenmaker, Pedro Teles, Beatrice Weder di Mauro

European Central Bank
20.03.2020
ECB Banking Supervision provides further flexibility to banks in reaction to coronavirus

European Commission
20.03.2020
Communication from the Commission to the Council on the activation of the general escape clause of the Stability and Growth Pact (pdf)

European Commission
19.03.2020
State aid: Commission adopts Temporary Framework to enable Member States to further support the economy in the COVID-19 outbreak

PIIE
18.03.2020
Coronavirus is no excuse for repeating errors of financial crisis
by Patrick Honahan

European Central Bank
18.03.2020
ECB announces €750 billion Pandemic Emergency Purchase Programme (PEPP)

INET economics
16.03.2020
Coronavirus Means Zero Hour for the European Union
by Thomas Ferguson and Edward J. Kane
If the European Central Bank does not jump to the aid of peripheral countries weakened by the pandemic, the Eurozone could collapse.

SUERF
March 2020
A “European Capitalization and Development Fund” (ECDF) to facilitate Europe’s post-corona recovery
Policy note by Ernest Gnan

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