Economic consequences
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The European Stability Mechanism will impact regional stability
The ESM was created after 2008 to provide loans to member states in financial crisis. However, the extremely high interest rates mean unless every state chooses to apply for these loans, interstate resentment will grow and destabilise Europe.
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Context
The global impact of the spread of the COVID-19 virus has heavily impacted the economies of all EU member states. The national lockdowns starting in mid-march have not only tested the crisis response of all EU member states but due to the unavailability of labour, the closure of most international borders and the crash of the stock markets, all national economies have been highly impacted.
The Argument
After the 2008 crisis, European nations wanted to put measures in place to guard against a similar disaster in the future. In response, the European Stability Mechanism was created. Now, world leaders are looking to the ESM to help Europe get back on its feet. In all likelihood, however, the ESM will fail to properly address their concerns.
The ESM will most likely be lending money to the countries that need it most. However, countries like Italy will still have to pay this money back. Thus, they may find themselves plunged into a severe debt crisis. Furthermore, the theoretical loans would likely either not impact the economy, or make it worse by bringing down the government. Thus, ESM's loans look like a bad idea.[1]
Countries will likely turn to the ESM to help them. However, the ESM will likely have to rethink its strategy. If not, its policies will have no effect, or perhaps even negative repercussions. That is the last thing Europe needs after its period of lockdown.
Counter arguments
The article cited in the argument claims that the ESM's projected plan would be a misguided endeavor. However, its alternative also involves help from the ESM, just of a different kind. It is undeniable that however Europe improves in the coming year, ESM will play a key part in it. The exact nature of their aid is still up in the air, but with the right approach, the ESM will help suffering countries like Italy greatly.
Proponents
Framing
Uneven debt distribution amongst EU member states will impact regional stability.
Premises
[P1] If a supranational debt is not equally distributed on member states, inequality amongst them will rise.
[P2] Regional stability is impacted by socio-economic factors.
Rejecting the premises
[P1] If a supranational debt is not equally distributed on member states, inequalities will not necessarily increase.
[P2] Regional stability is not mainly impacted by socio-economic factors.