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The Legal Architecture of the Economic Responses to COVID‐19: EMU beyond the Pandemic

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  • Federico Fabbrini

Abstract

This article analyses from a law and policy perspectives the measures adopted by the European Union (EU) to address the devastating economic effects of COVID‐19, assessing their implications for Europe's economic and monetary union (EMU). The article first sets the background by exploring the main features of EMU before COVID‐19. Subsequently, it examines the multiplicity of policies deployed by the EU institutions to contain the socio‐economic damages of the pandemic – including, most crucially, the EU recovery fund "Next Generation EU" – and underlines their transformative effect on the EU architecture of economic governance. As the article argues, the responses to COVID‐19 have produced a significant rebalancing of EMU, bridging the asymmetry between EU monetary and economic policy. Finally, the article considers whether the COVID‐19‐related responses are likely to be only temporary, or rather a new normal for EMU, and sheds light on further constitutional adaptations which are needed to sustain this unprecedented transfer of fiscal power to the EU level.

Suggested Citation

  • Federico Fabbrini, 2022. "The Legal Architecture of the Economic Responses to COVID‐19: EMU beyond the Pandemic," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 186-203, January.
    • Handle: RePEc:bla:jcmkts:v:60:y:2022:i:1:p:186-203
    DOI: 10.1111/jcms.13271
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    Cited by:

    1. Valerie J. D'Erman & Daniel F. Schulz & Amy Verdun & Dennis Zagermann, 2022. "The European Semester in the North and in the South: Domestic Politics and the Salience of EU‐Induced Wage Reform in Different Growth Models," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 21-39, January.
    2. Reinout Arthur van der Veer, 2022. "Walking the Tightrope: Politicization and the Commission's Enforcement of the SGP," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 81-100, January.
    3. Valerie D'Erman & Amy Verdun, 2022. "An Introduction: “Macroeconomic Policy Coordination and Domestic Politics: Policy Coordination in the EU from the European Semester to the Covid‐19 Crisis”," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 3-20, January.
    4. Ad Riet, 2024. "The rise of common public debt in Europe: a new chapter in fiscal integration?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 41(2), pages 617-638, July.
    5. Nelly Popova, 2024. "Next Generation EU and Fiscal Integration in Europe," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 46-64.

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