European Papers (Jan 2021)
A Critical Analysis on the European Union's Measures to Overcome the Economic Impact of the COVID-19 Pandemic
Abstract
(Series Information) European Papers - A Journal on Law and Integration, 2020 5(3), 1399-1423 | European Forum Insight of 16 January 2021 | (Table of Contents) I. Introduction. - II. The European Commission's efforts to protect the four freedoms and the internal market. - III. The European Union recovery instrument. - III.1. Negotiation of a balanced EU Recovery Agreement. - III.2. The Next Generation EU Recovery Plan. - IV. The European Central Bank's "Pandemic Emergency Purchase Programme" (PEPP). - V. A temporary increase on public deficit goals for Member States. - VI. The "Pan-European Guarantee Fund" and the "Support to mitigate Unemployment Risks in an Emergency" (SURE) programme. - VII. The 2021-2027 Multiannual Financial Framework (MFF). - VII.1. The Commission's proposal. - VII.2. Renegotiation of the MFF at the European Council Summit. - VII.3. Adjustments made by the European Parliament. - VII.4. Relevance of the MFF negotiation in the light of the pandemic. - VIII. The temporary framework for State aid measures to support the economy in the current COVID-19 outbreak. - VIII.1. The European Union's unique legislation on State Aid. - VIII.2. Notifiable State Aid measures under Art. 107 TFEU. - VIII.3. Legal basis and functioning of the temporary framework for State aid measures to support the economy. - VIII.4. Remarks on notifiable State Aid measures. - IX. Conclusions, criticism and lessons learnt from the COVID-19 crisis. - IX.1. Political tensions over NGEU's rule of law requirement and the European Parliament's necessary approval of the 2021-2027 MFF. - IX.2. The PEPP legitimacy should not be questioned by national judges in breach of the EU's exclusive competences. - IX.3. Short-term work schemes, liquidity support and the Temporary framework for State aid measures in the current COVID-19 outbreak are fostering the economic recovery. - IX.4. Solidarity: the core value for the EU's common response to the pandemic. | (Abstract) The EU has fast reacted in adopting a so-called Next Generation EU Recovery Plan (NGEU) and a 2021-2027 Multiannual Financial Framework (MFF) with the aim of overcoming the consequences of the disruptive COVID-19 pandemic for citizens' health and businesses across Europe. However, there have been several political discussions during the negotiations until an agreement was reached on 21 July 2020. A political drift made the positions not just of northern and southern but also eastern and western EU Member States differ. NGEU and the 2021-2027 MFF have posed significant challenge to the notion of solidarity in the EU. Furthermore, these mechanisms have been complemented by the European Central Bank's (ECB) Pandemic Emergency Purchase Programme (PEPP) and the temporary increase of public deficit goals for Member States. Finally, a critical analysis and lessons learnt from the EU strategy to overcome the economic slump provoked by the outbreak.
Keywords
