Unravelling Next Generation EU As A Transformative Moment: From Market Integration To Redistribution

Abstract

This article aims to understand the extent to which Next Generation EU (NGEU) can truly be considered a substantive change without a constitutional amendment. It draws on the concept of “constitutional transformation” to unravel what kind of informal change NGEU has introduced and how this affects the interpretation of formally unaltered provisions. To this end, given the crucial importance of Article 125 TFEU in the distributive pattern of resources within the EU and its role in the ideological construction of EU intervention in the economy, the article assesses NGEU against this provision, claiming that forms and objectives of Union financial assistance have changed thanks to a new politically-accepted interpretation of Article 125 TFEU. It is submitted that this new meaning of Article 125TFEU reflects a deeper change in the fundamental political telos of the Union, namely a shift from Member States’ integration through the market to redistribution through public intervention, with material implications for Member States’ financial liabilities.