The Multiannual financial framework 2021–2027 and Next Generation EU - A turning point of EU multi-level governance?

ABSTRACT

The agreements on Next Generation EU (NGEU) and the Multiannual Financial Framework 2021–2027 (MFF 2021–2027) are extraordinary milestones for the EU integration process. Not only do both regulations have important redistributive effects within a defined timeframe, but both regulations shape the hierarchy of objectives and instruments of EU budgetary policies. This is particularly true for cohesion policy, which has been characterised as the model of EU multilevel governance (MLG). Drawing on historical institutionalism and Peter Hall’s classification of policy change, this text examines the dynamics of change in MLG. In particular, this research looks at the timing and scope of changes in EU cohesion policy since the 1980s. We ask whether or not the adoption of NGEU and the MFF 2021–2027 is likely to represent a critical juncture for the MLG and to what extent both regulations modify objectives and instruments of cohesion policy.

KEYWORDS:

• EU Multilevel government
• cohesion policy
• Next generation EU
• Multiannual financial framework2021-2027
• conditionality

Acknowledgments

The authors would like to thank the editor, two anonymous referees and Johanna Schnabel who kindly reviewed the manuscript and provided valuable suggestions and comments.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. For a more in-depth analysis of the process of negotiation and adoption of the NGEU and the MFF see e.g (Martinsen and Goetz 2022);. (de la Porte and Jensen 2021).

2. Since MFF 2014–2020 Structural Funds were called European Structural and Investment Funds, there are five Funds: European regional development fund (ERDF); European social fund (ESF); European agricultural fund for rural development (EAFRD); European maritime and fisheries fund (EMFF). In our analisisanalysis we do not include the Cohesion Fund since this Funds is managed by the governments of the beneficiary member states.

3. In 1988 there were four Structural funds: the European Regional Development Fund (ERDF), the European Social Fund (ESF), European Agricultural Guidance and Guarantee Fund, Guidance Section (EAGGFGuidance); and the Financial Instrument for Fisheries Guidance (FIFG).

4. Operational Programmes (OPs) break down the general strategic objectives agreed upon in the Partnership Agreement into investment priorities, specific objectives and concrete actions.

5. The Just Transition Fund (JTF) is a new instrument of the Cohesion Policy 2021–2027 aimed to support territories most affected by the transition towards climate neutrality to avoid regional inequalities growing (European Parliament 2021b).

6. The Brexit Adjustment Reserve seeks to counteract the adverse economic and social consequences of Brexit in the Member States and sectors most affected. (European Parliament 2021a)

7. The Regional Authority Index systematically examined the level of self and shared rule by looking at direct regional participation in law-making and veto powers; executive control over the implementation of policies; fiscal control over the distribution of tax revenues across the whole state; borrowing control over national and regional borrowing levels; and impact on constitutional reform (Hooghe et al. 2016, 26–29; Hooghe, Marks, and Schakel 2008, 131–135).

Additional information

Funding

This work was supported by the European Union, project LEGITIMULT, under Grant Call Horizon CL2-2021-Democracy-01 GA No 101061550, and, the Spanish Ministry of Science and Innovation, project Institutional Reforms in Multilevel Systems: Paradigms, Constraints, Processes and Outcomes under Grant PID2020-116659GB-I00.