European Commission President Ursula von der Leyen has announced that Europe will need about €1 trillion (US$1.1 trillion) to fight the COVID-19 pandemic. This money could be used to establish a European Recovery Fund. But where will the money come from?

I propose that the European Union should raise the money needed for the Recovery Fund by selling “perpetual bonds” on which the principal does not have to be repaid (although they can be repurchased or redeemed at the issuer’s discretion). Authorising this issue should be the first priority for the forthcoming European Council summit on 2...