Eurobonds versus Coronabonds: Same Idea, New Context, Different Outcome?

Abstract

Since the outbreak of the SARS-CoV-2 pandemic, the European Union has taken tentative steps toward the issuance of joint debt. This progress is significant but puzzling: the technical value of such instruments has never been in doubt; however, the political will to move forward has always been lacking. What changed? This short article argues that contemporary political economy research points us toward the role of ideas and identity in explaining this shift.