New publication on Next Generation EU

Next Generation EU (NGEU) is the EU’s response to deal with the economic and social consequences of the corona pandemic. In this article, we analyse how it was possible to agree on NGEU.

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04/26/2021

Read the article here (open-access)

Considering it entailed a large common EU debt. Based on an in‐depth case study analysis, we identify three main dimensions of conflict underlying the political negotiations: the fiscal dimension, the rule‐of‐law dimension and the policy dimension, especially the climate and digitalization agendas. Various coalitions of actors were able to negotiate on these aspects, keeping a balance between their main priorities, but also making concessions, to enable an agreement. Our analysis reveals that the Franco‐German alliance has been revived, enabling the grant instrument in the NGEU to be adopted; a new alliance of small rich northern states named the Frugals' has emerged as a surprisingly strong coalition, insisting on conditionality for accessing the grant; a clear Polish‐Hungarian front has appeared to be challenging the EU's commitment to the rule‐of‐law; and a weakly coordinated Spanish‐Italian front was successful in terms of securing grants as an instrument. The article also assesses that despite the agreement on the deal, there will continue to be battles in the NGEU, especially on the fiscal and rule‐of‐law dimensions. Yet, it could represent a ‘Hamiltonian moment,’ if the NGEU becomes a permanent fiscal instrument, which would advance European integration further.

 
Read the open-access article, published in the journal Social Policy & Administration in the link above.

The page was last edited by: Department of International Economics, Government and Business // 01/25/2024