As a new recession looms in the runup of the Coronavirus crisis, Positive Money Europe’s newest report outlines why and how “helicopter money” should be deployed as soon as possible in the Eurozone.
Europe needs helicopter money to cope with the severe upcoming recession while avoiding a massive unsustainable debt burden. As soon as the economic recovery phase starts, the ECB should boost consumption in a fair way by sending money directly to all citizens.
The Eurogroup confirmed the highly needed suspension of fiscal constraints on Eurozone governments. But allowing countries to spend more does not mean all of them can afford to spend more.
If Christine Lagarde is sincere in her conviction that the European Central Bank’s strategic review should be open-minded and “turn each and every stone”, she must persuade the Governing Council to open a discussion on helicopter money.
On Monday 2 December 2019, a group of NGOs including Positive Money Europe met with the new President of the European to hand over a letter calling on the ECB to accelerate its efforts in the fight against climate change.