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Fabbrini Federico - EU Fiscal Capacity: Legal integration after Covid-19 and the war in Ukraine

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Fabbrini Federico EU Fiscal Capacity: Legal integration after Covid-19 and the war in Ukraine
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The explosion of the Covid-19 pandemic in February 2020 led to a paradigm change in the European Union architecture of economic governance. To mitigate the pandemics damage, the EU established a Recovery Fund called Next Generation EU (NGEU). Funded though resources raised on the financial markets, this special budget is worth 750bn at 2018 prices, which corresponds to 806,9bn at current prices. Disbursed to member states in the form of both loansand grants and to be repaid on a long-term basis through the introduction of new EU taxes, the NGEU has endowed the EU with borrowing, spending, and taxing powers.EU Fiscal Capacity: Legal Integration After Covid-19 and the War in Ukraine argues that the NGEU constiutes a profound overhaul in the EU architecture of economic governance. Moving away from the fiscal surveillance shown in response to the euro-crisis, the EU has adopted a strategy of fiscal federalism more akin to the United States.The return of war in Europe following 75 years of peace has caused yet more socio-economic damage for the EU. Occuring as Europe was slowly re-emerging from the pandemic, the war in Ukraine has disrupted supply chains, increased humanitarian assistance costs, and generated an energy crisis. Within the context of war, the limitations of the current EU constitutional arrangements have yet again been exposed. EU Fiscal Capacity argues that the EU needs to retain the NGEU as a permanentfeature of EMU.The first book to analyse how the Covid-19 pandemic and the war in Ukraine have affected Europes Economic & Monetary Union from an EU law and policy perspective, this book is a must read for policy makers and students of European law and politics alike.

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Great Clarendon Street, Oxford, OX2 6DP,

United Kingdom

Oxford University Press is a department of the University of Oxford. It furthers the Universitys objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries

Federico Fabbrini 2022

The moral rights of the author have been asserted

First Edition published in 2022

Impression: 1

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by licence or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above

You must not circulate this work in any other form and you must impose this same condition on any acquirer

Public sector information reproduced under Open Government Licence v3.0

(http://www.nationalarchives.gov.uk/doc/open-government-licence/open-government-licence.htm)

Published in the United States of America by Oxford University Press

198 Madison Avenue, New York, NY 10016, United States of America

British Library Cataloguing in Publication Data

Data available

Library of Congress Control Number: 2022945722

ISBN 9780198874225 (hbk.)

ISBN 9780198874232 (pbk.)

ISBN 9780198874256 (epub.)

DOI: 10.1093/oso/9780198874225.001.0001

Links to third party websites are provided by Oxford in good faith and for information only. Oxford disclaims any responsibility for the materials contained in any third party website referenced in this work.

Acknowledgements

This book is the result of research I have undertaken throughout the pandemic as a Full Professor of EU Law at the School of Law & Government of Dublin City University (DCU)and was completed in September 2022, while on sabbatical at Princeton University, as a Fellow in Law, Ethics, and Public Policy at the School of Public and International Affairs and the University Centre for Human Values. The law of Europes Economic and Monetary Union (EMU) has long been, together with Brexit and many other aspects of European integration, one of my main research interests. In fact, since 2021, I am also the Principal Investigator of the Jean Monnet Centre of Excellence REBUILD (Recovery of Europe, Budget of the Union: Integration, Law and Democracyproject: 101047922), housed within the Brexit Institute at DCU. The REBUILD project has provided the academic framework to conceive and draft this book, and I would like to thank a number of colleagues, including Michael Breen, Edoardo Celeste, Ian Cooper, Goran Dominioni, Ken McDonagh, Niall Moran, Christy Petit, Janine Silga, and Diarmuid Torney for conversations on those topics. At the same time, Princeton University offered an ideal intellectual context to fine-tune and finalize the volume, and I would like to thank, on various grounds, several colleagues, including Harold James, Kim Lane Scheppele, Melissa Lane, Sophie Meunier, Jan-Werner Mueller, and Andrew Moravcsik.

This book builds on prior scholarship of mine, which has been, however, significantly updated and reorganized. In particular, The War in Ukraine and the Future of the EU in Adam Cygan and Adam Lazowski (eds), Research Handbook on the Legal Aspects of Brexit (Edward Elgar Publishing 2022). I am also pleased to acknowledge that many of the key ideas of this book were fleshed out previously in my report Europes Economic and Monetary Union beyond Covid-19, June 2021, written at the request of the Department of Finance of Ireland and Presidency of the Eurogroup, and especially in my monograph in Italian Next Generation EU: Il futuro di Europa e Italia dopo la pandemia (Il Mulino 2022).

I want to thank my University, DCU, for granting me a sabbatical in academic year 202223, which allowed me to spend time at Princeton University, and Princeton University, for welcoming me in the United States. Also, a note of gratitude is due to my publisher, Oxford University Press: this is the eighth book I am publishing with them in eight years, and I am grateful for their continuing trust. Last but definitely not least, I would like to thank my better half Silvia, for her love, patience, and support throughout the time-consuming and draining process of writing this book. This book is dedicated to my mother Manuela, with huge gratitude for everything she has done.

Contents
European Union
European Court of Justice
European Convention on Human Rights
European Court of Human Rights
Germany
Bundesverfassungsgericht
Italy
Corte Costituzionale
United States
Supreme Court
AFSJarea of freedom, security and justice
BICCbudgetary instrument for convergence and competitiveness
CBAMCarbon Border Adjustment Tax
CFSPcommon foreign and security policy
CSDPcommon security and defence policy
ECBEuropean Central Bank
ECJEuropean Court of Justice
EDISEuropean deposit insurance scheme
EDPExcessive Deficit Procedure
EFSFEuropean Financial Stability Facility
EFSMEuropean Financial Stability Mechanism
EIBEuropean Investment Bank
EISFEuropean Investment Stabilization Function
EMUEconomic and Monetary Union
EPEuropean Parliament
EPFEuropean Peace Facility
ESMEuropean Stability Mechanism
ETSemissions trading scheme
EUEuropean Union
EURIEU Recovery Instrument
GDPgross domestic product
HRHigh Representative
IGAintergovernmental agreement
IIAinterinstitutional agreement
IMFInternational Monetary Fund
MFFMultiannual Financial Framework
NATONorth Atlantic Treaty Organization
NGEUNext Generation EU
NRRPsNational Recovery and Resilience Plans
OMTOutright Monetary Transaction
ORDOwn Resources Decision
PCSLPandemic Crisis Support Line
PEPPPandemic Emergency Purchase Programme
PSPPPublic Sector Purchase Programme
RRFRecovery and Resilience Facility
SGPStability and Growth Pact
SMEssmall- and medium-sized enterprises
SMPSecurities Markets Programme
SRFSingle Resolution Fund
TPI
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