Borrowing: a new resource for the European Union in the period of COVID-19 epidemic
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 th...
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| Format: | Article |
| Language: | English |
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Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika
2021-03-01
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| Series: | Prawo Budżetowe Państwa i Samorządu |
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| Online Access: | https://apcz.umk.pl/czasopisma/index.php/PBPS/article/view/PBPS.2021.002/29056 |
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| Summary: | 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. |
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| ISSN: | 2300-9853 2353-7086 |