The EU Recovery Instrument and the constitutional implications of its expenditure

Abstract

In a decisive determination to support economic recovery in the aftermath of the Covid-19 pandemic, the EU formulated an ambitious countercyclical fiscal expansionary policy. The pandemic coincided in time with the elaboration of the new 2021-2027 Multiannual Financial Framework, and this allowed the shaping of the entire financial programming process on the pattern of the intended fiscal expansion. The EU Recovery Instrument was adopted in December 2020 as an exceptional, one-off initiative allowing increased budgetary payments until December 2026.