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[The Future of EU Finances After COVID-19]
Michael Broer1, Klaus-Dirk Henke2, Horst Zimmermann3
1Fakultät Wirtschaft - Campus Wolfsburg, Ostfalia Hochschule für angewandte Wissenschaften, Siegfried-Ehlers-Str. 1, 38440 Wolfsburg, Deutschland.
Abstract:
The impact of COVID-19 led to changes in EU financing that pose questions about the shape of the future EU "fiscal constitution". The additional Recovery Fund, with the volume of three-fourths of the new seven year budget, will be financed by the first EU borrowing ever. Is this unprecedented fiscal magnitude necessary to compete with China? Or does the EU need to downsize in two directions: (1) in the volume and differentiation of its various tasks and (2) in the equal rights among its 27 member states (01.01.2021). In any case, the COVID-19 shakeup should be incentive for a major reform of the EU finances.
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