Reforms of the Financial System in the European Union –Towards a New Legal-Institutional Order

Abstract

The combination of the legal documents including the 2021-2027 EU long-term budget, NextGenerationEU, andthe Own Resources Decision (3) (Decision of 14 December 2020 on the system of own resources of the EuropeanUnion, repealing Council Decision 2014/335/EU, Euratom of 26 May 2014 on the system of own resources of theEuropean Union) has been praised as a groundbreaking achievement and political success of the EU authorities,one whose importance is no lesser than that of the establishment of the EU’s common market. The package hasmarked a powerful turn in EU’s politics, in that it helps move the debts of the countries receiving funds fromNextGenerationEU as well as within National Recovery and Resilience Plans (NRRPs) outside their national budgetarysystems. As is emphasised in a number of EU documents, the increases in EU Member States’ deficits anddebts have been due to the financial and health crisis. However, how or in what ways the new own resources andnew outside-Treaty financial engineering might contribute to the funding and eventual repayment of NextGenerationEUdebt, has not been explained.In parallel, the aforementioned success has given the basis for further action in view of in-EU integration, as expressedin the project to amend EU Treaties. Work on the amendment will continue during the present EuropeanParliament’s term. Analysis of the directions of change in the Treaty provisions covering EU fiscal and monetarypolicies and the gradually remoulded model of EU funding form t he core of this present paper.