The NGEU – Creative Legal Engineering for a Good Cause

The EU’s post-Covid recovery plan (called NextGenerationEU or ‘NGEU’) constitutes a major shift in the EU’s macro-economic policy. It was made possible by a creative use of the ‘legal resources’ offered by the EU Treaties. The legal services of the EU institutions worked together to find the legal solutions that were needed to put the plan in operation, by endorsing a broad reading of EU competences (specifically, of Articles 122 and 175 TFEU) and a new practice in EU public finances (allowing the EU to engage in massive borrowing on the financial markets). The paper will present (and approve) this creative legal engineering.