The socio-economic consequences of the Covid-19 pandemic on European economies and their economic responses to the crisis

Abstract

The economic crisis caused by the Covid-19 pandemic has led to a widespread recession. Its socio-economic impacts could potentially be devastating and long-lasting. Europe has been especially hit. To try to mitigate the negative economic impact, EU Member states have taken fiscal and monetary measures to an unprecedented extent. In this context, this study aims at examining the unequal impact of the pandemic across eight EU Member States. It finds that the impact in terms of GDP and unemployment has differed greatly amongst the countries examined, with southern countries being substantially more impacted, particularly in terms of GDP growth. The study then analyses the measures taken by the countries to limit the pandemic’s negative socio-economic consequences. To do so, it groups the measures into four categories depending on who they target: companies and self-employed, individuals, households or the public sector capacities. Finally, the study takes a normative turn to discuss whether the countries’ socio-economic responses have been “fair”, using Rawls’s Theory of Justice which is one of the most influential theories in the field of distributive justice. It finds that while a priori most measures can indeed be considered “fair”, it is too soon to conclude - as it depends on how they will actually be implemented.