If the European Union’s new recovery fund is to achieve its aim, the soft money it promises should come with hard standards designed to prevent rule-of-law breaches and ineffective government spending by member states. Unfortunately, this looks unlikely to happen.
PARIS – Back in July, the announcement of the European Union’s new €750 billion ($918 billion) recovery fund, dubbed Next Generation EU, was widely (and rightly) regarded as revolutionary. Never before had the EU borrowed to finance transfers and cheap loans to help member states recover from a major economic shock. By breaking longstanding taboos, the initiative may even pave the way to a fiscal union.
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