Overcoming COVID-19 impact in the EU: Supranational financial aspect

Abstract

The COVID-19 pandemic has led to an acute socio-economic crisis in the world, including in Europe. Anti-crisis measures at the supranational level are considered. The pandemic, which, after the Brexit decision, became another test for European integration, led to the development of a number of anti-crisis measures by the European Commission. On May 27, 2020, the European Commission presented a draft of measures to combat the pandemic, where the main role assigned to the EU Common Budget. The crisis has demonstrated that more funds and powers at the supranational level need to respond to emergencies. The Europeans were forced to take an unprecedented step - a possible “temporary increase in the Own resources ceiling,” which is legally limited and very slowly changing. The results of the meeting of the European Council in July 2020, dedicated to the Commission project were analyzed. A comparison made between the final indicators adopted at the Council, with the figures of the current Multiannual Financial Framework and the project of the European Commission for 2018-2020. Sources of financing for the European Economic Recovery Plan presented. The modern system of own resources does not contribute to the implementation of all the most important EU strategies and initiatives in the field of sustainable economic growth and development. New own resources will not only complement traditional ones, but also demonstrate priorities in the field of environmental policy and fair taxation. The Commission new project enhances the role of the Common Budget in integration and links it closely with the implementation of the long-term strategic priorities of the EU’s economic development. The conclusion is about the multi-vector impact of COVID-19. This force majeure circumstance, if the member states effectively unite their efforts to prepare the foundations for economic recovery, may become an impetus for further deepening European integration.