Revitalizing EU Economic Governance

I recently contributed an op-ed to the Social Europe journal. A revised version of my policy brief for CESIfo in July, it delves into pressing issues of European economic governance, notably, the need for a permanent fiscal capacity and EU-level investment funds.

In my policy brief, I advocate for a paradigm shift in the EU’s economic governance, contending that the EU urgently requires a permanent debt facility to confront its myriad challenges. I also emphasize the need for fiscal rules that are fit for purpose—shifting the focus from debt reduction to strategic investment. Germany is the elephant in the room, presenting obstacles to implementing these fit-for-purpose fiscal rules and hindering EU-level investment capacity.

I underscore the significance of decentralization and democratization, particularly in the European Semester, to ensure legitimacy at the national level. I also address the dangers of populist extremism, advocating for common solutions through EU solidarity. These include EU-level debt and fit-for-purpose fiscal rules, providing a holistic approach to address the existential challenges faced by the European Union.

The full op-ed is available in Social Europe.