Journal article: The Covid-19 health crisis is plunging our economies into a crisis of unprecedented proportions. To finance the emergency measures, EU Member States are rapidly increasing their debt levels by borrowing on the bond markets, while the ECB is launching new purchase programmes and further easing bank refinancing conditions. But increasing public debt and relying on bank credit to boost the real economy is not an adequate solution to the problem; to avoid recession and reduce the social costs of the crisis, Europe needs an innovative monetary policy that is as coordinated as possible with fiscal aid packages.