‘Revisiting EU’s economic governance framework – economic necessities and legal options’

Based on a CEPR study he co-authored, this paper by Armin Steinbach (professor at HEC Paris) puts forward an ambitious yet feasible blueprint for reforming the European macroeconomic policy system. It highlights three key policy fields for reform: the relationship between the monetary and the fiscal pillars, fiscal rules, and potential follow-ups to the Next Generation EU Initiative (NGEU) launched in response to the Covid crisis. More particularly, the paper focuses on the legal feasibility of reforms in the area. Based on an insightful and forward-looking analysis of relevant Treaty provisions, the paper argues that primary law leaves much room open for reforms and policy improvements.