‘Next Generation EU’ in the context of the budgetary balance

The paper is a critical analysis of the new system of own resources of the European Union, established to address the consequences of the COVID-19 crisis. Under the Council Decision 2020/2053 of 14 December 2020, the Commission shall be, inter alia, empowered to borrow funds on capital markets on behalf of the Union. For the first time in the history there will arise considerable common budgetary commitments on the part of all member states, whose repayment will be spread over many subsequent years and will be charged to future generations of European Union citizens (the so-called Next Generation EU programme).

The aforementioned changes require to be confronted with the long-term financial policy of the Union based on the balanced budget rule, resulting especially from the provisions of the Treaty on the Functioning of the European Union and the Fiscal Campact, as well as to elaborate on the limits of indebtedness of societies by their representatives who form public authorities.