From the taboo of the “Transfer Union” to the goal of the “Fiscal Union”: The normalization of financial solidarity within the EU Budget

Much of the current debate concerning the future of Europe is animated by the contrast between supporters of a “fiscal Union” and opponents to any form of “transfer Union” endangering national financial independence. Over the years, the EU budgetary system has shown itself to be resistant to changes. The forceful response of the EU to the Covid-related economic crisis induced a sudden shift from the State-centered logic of the juste retour toward a truly European budget. NGEU has opened the door for something resembling a form of ‘fiscal solidarity’ because of the joint borrowing, the new massive financial transfers (grants) to member States as well the design of new own resources. Against this background, the paper explores the new paradigm shift by questioning interpretative stretching and legal acrobatics adopted by the EU Institutions in order to normalize financial solidarity within the EU constitutional framework.