Rethinking the role of the European Stability Mechanism for local communities

Abstract

The Covid19-related emergency has changed our perspectives on individual and collective priorities. One of them is to invest on infrastructures at the level of local communities, where most social and economic relations take place. This note explores the possibility to use a fully fledged European Stability Mechanism for this purpose. This would provide a solution to the required transformation of the ESM from a temporary instrument for financial assistance into a growth-promoting fund.