, Columnist
Christine Lagarde's $186 Billion Coronavirus Fear
The euro zone’s economy exports a lot to China and is too weak to cope with a new crisis. Unfortunately, the ECB has already used much of its firepower.
Stopping the spread.
Photographer: ATTILA KISBENEDEK/AFPThis article is for subscribers only.
An infection typically hits the vulnerable hardest — and in the new coronavirus outbreak this might apply economically too. For all the geographical distance between Europe and China, the euro zone has much to fear from its spread.
The disease is another challenge to the export-driven model of the monetary union, which was already struggling with the global lurch towards protectionism. It could be the first big test for Christine Lagarde, the European Central Bank’s new president, who has been a tad too optimistic about the euro area’s prospects.