Overcoming COVID-19 Impact in the EU: Supranational Financial Aspect

DOI: 10.20542/0131-2227-2021-65-1-24-32
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences, 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation

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.

Keywords: COVID 19, EU Common budget, New Generation EU, reforms, European Taxes


  1. Khudyakova L.S., Kulakova V.K., Sidorova E.A., Nozdrev S.V. Global’naya reforma regulirovaniya finansovogo sektora: pervye itogi i novye vyzovy [Global financial sector regulatory reform: first results and new challenges]. Den’gi i kredit, 2016, no. 5, pp. 28-38.
  2. Bobrov A. Razvitie evropeiskoi ehkonomicheskoi integratsii v usloviyakh dolgovogo krizisa [European economic integration development amidst the debt crisis]. Doklady Instituta Evropy, 2018, no. 351, pp. 26-31.
  3. Trofimova O.E., ed. Migratsionnye protsessy v Evrosoyuze: sovremennye problemy i vyzovy [Migration processes in European Union: problems and challenges]. Moscow, IMEMO, 2019, pp. 30-50.
  4. “World order: the structural transformation” The first online session of “Primakov Readings” (In Russ.) Available at: https://www.imemo.ru/news/events/text/onlayn-sessiya-primakovskih-chteniy (accessed 28.08.2020).
  5. Statistics on Small and Medium-sized Enterprises. Available at: https://ec.europa.eu/eurostat/statistics-explained/index.php/Statistics_on_small_and_medium-sized_enterprises#General_overview (accessed 28.08.2020).
  6. Europe’s Moment: Repair and Prepare for the Next Generation. European Commission, 27.05.2020. 18 . Available at: https://ec.europa.eu/info/sites/info/files/communication-europe-moment-repair-prepare-next-generation.pdf (accessed 28.08.2020).
  7. Adjusted Commission Work Programme 2020. European Commission, 27.05.2020. Available at: https://ec.europa.eu/info/sites/info/files/cwp-2020-adjusted_en.pdf (accessed 28.08.2020).
  8. Council Agrees to Start Lifting Travel Restrictions for Residents of Some Third Countries from 1 July 2020. Available at: https://www.consilium.europa.eu/en/policies/coronavirus/ (accessed 28.08.2020).
  9. European Coordinated Response on Coronavirus. European Commission, 13.03.2020. Available at: https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_458 (accessed 28.08.2020).
  10. COVID19: Commission Sets out European Coordinated Response to Counter the Economic Impact of the Coronavirus. European Commission, 13.03.2020. Available at: https://ec.europa.eu/commission/presscorner/detail/en/ip_20_459 (accessed 28.08.2020).
  11. Europe’s Moment: Repair and Prepare for the Next Generation. European Commission, 27.05.2020. Available at: https://ec.europa.eu/commission/presscorner/detail/en/IP_20_940 (accessed 28.08.2020).
  12. White Paper on the Future of Europe Concerning EU Finances. Available at: https://ec.europa.eu/commission/future-europe/white-paper-future-europe/white-paper-future-europe-five-scenarios_en (accessed 28.08.2020).
  13. Europe’s Moment: Repair and Prepare for the Next Generation. Identifying Europe’s Recovery Needs. European Commission, 27.05.2020. 53 p. Available at: https://ec.europa.eu/info/sites/info/files/economy-finance/assessment_of_economic_and_investment_needs.pdf (accessed 28.08.2020).
  14. Europe’s Moment: Repair and Prepare for the Next Generation. Brussels, European Commission, 27.05.2020. 17 p. Available at: https://ec.europa.eu/info/sites/info/files/communication-europe-moment-repair-prepare-next-generation.pdf (accessed 28.08.2020).
  15. EU Budget for Recovery: Questions and Answers on REACT-EU, Cohesion Policy Post2020 and the European Social Fund+. European Commission, 28.05.2020. Available at: https://ec.europa.eu/commission/presscorner/detail/en/QANDA_20_948 (accessed 28.08.2020).
  16. Fund for European Aid to the Most Deprived (FEAD). Available at: https://ec.europa.eu/social/main.jsp?catId=1089 (accessed 28.08.2020).
  17. Solvency Support Instrument Helping Kick-start the European Economy. Available at: https://ec.europa.eu/info/sites/info/files/economy-finance/ssi-factsheet.pdf (accessed 28.08.2020).
  18. Commission Welcomes European Parliament’s Position on InvestEU. European Commission, 16.01.2019. Available at: https://ec.europa.eu/commission/presscorner/detail/en/IP_19_444 (accessed 28.08.2020).
  19. The InvestEU Programme: Questions and Answers. European Commission, 06.2018. Available at: https://ec.europa.eu/commission/presscorner/detail/en/MEMO_18_4010 (accessed 28.08.2020).
  20. Darvas Zs. Three-quarters of Next Generation EU Payments Will Have to Wait until 2023. 10.06.2020. Available at: https://www.bruegel.org/2020/06/three-quarters-of-next-generation-eu-payments-will-have-to-wait-until-2023/ (accessed 28.08.2020).
  21. How EU Member States Reacted to the Commission’s Recovery Fund Proposal. 04.06.2020. Available at: https://www.euractiv.com/section/politics/news/how-eu-member-states-reacted-to-the-commissions-recovery-fund-proposal/ (accessed 28.08.2020).
  22. Ministerial Committee on EU Affairs Outlined Finland’s Positions on the Financial Framework Package and the Recovery Instrument. Government Communications Department, 04.06.2020. Available at: https://valtioneuvosto.fi/-/10616/eu-minva-linjasi-suomen-kantoja-rahoituskehyskokonaisuuteen-ja-elpymisvalineeseen?languageId=en_US (accessed 28.08.2020).
  23. Komissarova Zh.N., Sergeev E.A. Fiskal’noe regulirovanie ES i konsolidatsiya byudzheta v stranakh Vishegradskoi gruppy [EU fiscal governance and budget consolidation in Visegrád countries]. Vestnik MGIMO-Universiteta, 2019, no. 3 (66), pp. 131-158. DOI: 10.24833/2071-8160-2019-3-66-131-158
  24. European Council Conclusions, 17–21 July 2020. European Council, 21.07.2020. 67 p. Available at: https://www.consilium.europa.eu/media/45109/210720-euco-final-conclusions-en.pdf (accessed 28.08.2020).
  25. Zubașcu F. Budget Deal Shrinks EU Ambitions in Technology and Innovation Programmes. Science|Business, 21.07.2020. Available at: https://sciencebusiness.net/framework-programmes/news/budget-deal-shrinks-eu-ambitions-technology-and-innovation-programmes (accessed 28.08.2020).
  26. Bayer L., Busquets Guàrdia A. The EU Budget and Recovery Deal in Charts. Politico, 25.07.2020. Available at: https://www.politico.eu/article/the-eu-budget-and-recovery-deal-in-charts/ (accessed 28.08.2020).
  27. Klinov V.G., Sidorov A.A. Ehkonomicheskaya kon’yunktura [Market situation]. Moscow, Ekonomika, 2019. 425 p.
  28. Krenek A., Schratzenstaller M. Tax-based Own Resources to Finance the EU Budget. Intereconomics, 2019, vol. 54, no. 3, pp. 171-177.
  29. The EU Budget Powering the Recovery Plan for Europe. COM(2020) 442 final. European Commission, 27.05.2020. Available at: https://ec.europa.eu/info/sites/info/files/about_the_european_commission/eu_budget/1_en_act_part1_v9.pdf (accessed 28.08.2020).
  30. Financing the Recovery Plan for Europe. European Commission, 27.05.2020. Available at: https://ec.europa.eu/info/sites/info/files/about_the_european_commission/eu_budget/factsheet_3_v22.pdf (accessed 28.08.2020).
  31. Valero J. France Proposes a Fund of EU’s 3% GDP against Virus. Euractiv, 22.04.2020. Available at: https://www.euractiv.com/section/economy-jobs/news/france-proposes-a-fund-of-eus-3-gni-against-virus/ (accessed 28.08.2020).

Registered in System SCIENCE INDEX

For citation:
Sidorova E. Overcoming COVID-19 Impact in the EU: Supranational Financial Aspect. World Eonomy and International Relations, 2021, vol. 65, no. 1, pp. 24-32. https://doi.org/10.20542/0131-2227-2021-65-1-24-32

Comments (0)

No comments

Add comment






Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies


Current Issue
2024, vol. 68, No. 5
Topical Themes of the Issue:
  • Are There Any Ways to Break Through the Korean Nuclear Impasse?
  • Contemporary U.S. Taiwan Policy: Balancing on the Edge
  • The Gulf Monarchies’ Vision of the Global Order Transformations and the Russian Place in It
  • At Post-Soviet Space
Submit an Article
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.