How Cohesion Became the EU’s Vehicle for Economic Policy

Abstract

In Brussels, something remarkable has happened in the last four years. Cohesion policy—which had heretofore been a policy backwater, aimed at addressing regional disparities—has emerged as the EU’s primary vehicle for reshaping economic and related fiscal policies in the Member States. As a result, any economic or fiscal policy measure that can be plausibly described as a structural reform (primarily an area of Member State competence, subject to Union coordination) can now be reframed as a measure of EU cohesion policy (a shared competence) that can be supported by EU funds to incentivize compliance. How did this happen?

Keywords

• Cohesion, Council, emu, European Economic and Monetary Union, Legal Service, NextGenerationEU, NGEU