Embedded Bilateralism, Integration Theory, and European Crisis Politics: France, Germany, and the Birth of the EU Corona Recovery Fund*

Abstract

What explains the creation of the EU corona recovery fund? Why did the Union agree on a large-scale financial response to the corona pandemic, despite member states' very different immediate reactions to the crisis and their opposing attitudes towards common debt? This article argues for the decisiveness of France and Germany's role within the Union and their tight bilateral political cooperation. The ‘embedded bilateralism’ approach to European integration and EU politics explains how and why France and Germany, starting from different poles, came together and established joint positions, paving the way for an overall European compromise. Focusing on these two countries' particular leadership role advances the theoretical debate about the actors most crucial for driving European integration, especially in times of severe crisis.