A Critical Analysis on the European Union's Measures to Overcome the Economic Impact of the COVID-19 Pandemic
Jonatan Echebarría Fernández
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.