2021 •
Borrowing : a New Resource for the European Union in the Period of COVID-19 Epidemic
Authors:
Loïc Levoyer
Abstract:
After more than two years of difficult negotiations, marked by a withdrawal of the United Kingdom from the European Union and an eruption of the COVID-19 health crisis, the European Union has succeeded in adopting a multiannual financial framework for the years 2021–2027. The agreement reached at the European Council of 17 and 21 July 2020 constitutes a turning point in the construction of the European Union insofar as it transforms the multiannual financial framework into an instrument of a macroeconomic stabilization by backing it with a ne (...)
After more than two years of difficult negotiations, marked by a withdrawal of the United Kingdom from the European Union and an eruption of the COVID-19 health crisis, the European Union has succeeded in adopting a multiannual financial framework for the years 2021–2027. The agreement reached at the European Council of 17 and 21 July 2020 constitutes a turning point in the construction of the European Union insofar as it transforms the multiannual financial framework into an instrument of a macroeconomic stabilization by backing it with a new recovery instrument called “Next Generation EU”. This change is linked to a new EU’s own resources decision for 2020, which establishes borrowing as a temporary resource for the European Union. Recourse to borrowing is strictly limited. However, for member states, recourse to borrowing could be a factor in accelerating the creation of other own resources in order to avoid using member states’ budgets (in a complementary manner) to repay the loan. (Read More)
We have placed cookies on your device to help make this website and the services we offer better. By using this site, you agree to the use of cookies. Learn more