Can the Recovery and Resilience Facility lay the foundations of a new European economic governance framework?

Details

Supervisors

Chantal Kegels

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [60] en sciences économiques, orientation générale

Abstract

The European Union's response to the economic challenges posed by the COVID-19 pandemic is innovative and led to the establishment of the Recovery and Resilience Facility (RRF) under the NextGenerationEU (NGEU) plan. This thesis explores whether the RRF can lay the foundations of a new European economic governance framework. The study starts by a description of the NGEU plan and by outlining the RRF's main features, highlighting the novelties of this instrument. It then critically assesses the RRF, recognizing notably its success in reviving Europe's economy and prompting structural reforms in some Member States through financial conditionality. However, the thesis also identifies significant drawbacks, such as the need for improved milestone definitions, the challenge of the European Commission's extensive role amidst growing mistrust, and the administrative burden faced by Member States. In evaluating whether the RRF represents a fundamental shift in EU economic governance, the thesis acknowledges the influence of path dependency in European integration. Potential reforms are proposed to balance the new power dynamics, including strengthening the roles of national parliaments, the Council of the European Union, and the European Parliament. These reforms aim to enhance citizen engagement and reduce the gap between European citizens and their leaders to improve the RRF.