Regional disparities in Europe: The economic impact of Covid-19

Speakers: Gergely Hudecz (European Stability Mechanism) Discussants: Cinzia Alcidi (Centre for European Policy Studies, Brussels); Christian Odendahl (Centre for European Reform); Jeffrey Franks (International Monetary Fund) Chair: Kalypso Nicolaidis (St Antony's College, Oxford) The economic impact of the coronavirus is likely to differ from region to region, depending on their sectoral specialisation, and may exacerbate regional disparities. This paper provides an overview of how regional disparities have evolved since the euro’s inception with an aim to help policymakers develop appropriate policy responses to support recovery following the economic shock caused by the coronavirus, and maintain the convergence process. Modes of regional support and policy intervention are crucial to helping adjustment and boosting productivity to ensure long-term sustainability and income convergence.