EU Fiscal Capacity: Legal Integration After Covid-19 and the War in Ukraine

The EU established a Recovery Fund called Next Generation EU (NGEU) to mitigate the damage of the Covid-19 pandemic. EU Fiscal Capacity: Legal Integration After Covid-19 and the War in Ukraine argues that the NGEU constitutes a profound overhaul in the EU architecture of economic governance and that the EU needs to retain the NGEU as a permanent feature of EMU.

Format: Paperback / softback
Length: 192 pages
Publication date: 08 December 2022
Publisher: Oxford University Press

The outbreak of the COVID-19 pandemic in February 2020 brought about a significant shift in the economic governance architecture of the European Union. In response to the devastating effects of the pandemic, the EU established the Next Generation EU (NGEU) Recovery Fund. This special budget, funded through resources raised on the financial markets, holds a value of 750 billion euros at 2018 prices, equivalent to 806.9 billion euros at current prices. The NGEU is disbursed to member states in the form of loans and grants, to be repaid over a long period through the introduction of new EU taxes. This unprecedented financial intervention has endowed the EU with borrowing, spending, and taxing powers, marking a profound overhaul in the EU's economic governance framework.

EU Fiscal Capacity: Legal Integration After COVID-19 and the War in Ukraine delves into the implications of the NGEU on the EU's economic governance. The book argues that the NGEU represents a departure from the fiscal surveillance measures implemented in response to the euro-crisis. Instead, the EU has adopted a strategy of fiscal federalism, more akin to the United States. This shift reflects the changing dynamics of the EU and the need to adapt to the challenges posed by the pandemic and the war in Ukraine.

The war in Europe, which occurred after 75 years of peace, has inflicted further socio-economic damage on the EU. The conflict disrupted supply chains, increased humanitarian assistance costs, and led to an energy crisis. In the context of war, the limitations of the current EU constitutional arrangements have been exposed once again. EU Fiscal Capacity emphasizes the importance of retaining the NGEU as a permanent feature of the EMU.

This first-of-its-kind book offers a comprehensive analysis of how the COVID-19 pandemic and the war in Ukraine have impacted Europe's Economic & Monetary Union from an EU law and policy perspective. It is a valuable resource for policy makers and students of European law and politics, providing insights into the ongoing challenges and opportunities facing the EU. The book sheds light on the need for continued fiscal integration and cooperation within the EU, as well as the importance of robust economic governance in navigating the complex geopolitical landscape.

In conclusion, the explosion of the COVID-19 pandemic in February 2020 and the subsequent outbreak of the war in Europe have profoundly shaped the EU's economic governance architecture. The establishment of the NGEU Recovery Fund and the adoption of a fiscal federalism strategy have been crucial in mitigating the pandemic's damage. EU Fiscal Capacity: Legal Integration After COVID-19 and the War in Ukraine highlights the importance of retaining the NGEU as a permanent feature of the EMU and emphasizes the need for continued fiscal integration and cooperation within the EU. This book is a must-read for policy makers and students of European law and politics, as it provides valuable insights into the ongoing challenges and opportunities facing the EU.

Weight: 254g
Dimension: 216 x 140 x 10 (mm)
ISBN-13: 9780198874232