Europe acts together to boost economies

Europe, so often derided as lumbering and divided, seems to be finding its voice in the pandemic.

A powerful new dose of stimulus by the European Central Bank on Thursday, and a German emergency spending package that defied stereotypes of stingy Prussians, were the latest evidence that policymakers are responding to the pandemic with far more muscle than anyone would have predicted a few months ago.

The central bank announced it would nearly double a de facto money printing program to 1.35 trillion euros ($1.5 trillion) to ensure a steady flow of cheap credit to eurozone consumers and businesses. And the government of Chancellor Angela Merkel of Germany, only a few months ago a fortress of fiscal conservatism, announced a package of tax cuts, aid to small business, cash payments to parents and other measures worth 130 billion euros.

Those measures come a week after the European Commission unveiled a plan to raise 750 billion euros for pandemic recovery by selling bonds that would be backed by all 27 members of the European Union, a first for the bloc on such a large scale. Individual countries such as France also have exceeded expectations.

The speed of Europe’s response has come as a surprise, especially after the infighting and procrastination that marked leaders’ response to the eurozone debt crisis that began in 2010. This time, the ECB and governments have been acting in concert.

“Looking at what happened in the last two weeks; this is huge,” said Carsten Brzeski, chief eurozone economist at ING Bank. “It looks as if Europe finally got the message.”