The Stability and Growth Pact’s “Unusual Events” Clause and the Funding of the Refugee Crisis in the European Union

ABSTRACT

The European Union (EU) has been tested by three great external events, the Syrian refugee crisis, the Coronavirus, and the Russian invasion of Ukraine. Each of these events challenges the EU’s Stability and Growth Pact (SGP) that sanctions member states incurring excessive budgetary deficits. This research focuses on the application of these rules to the refugee crisis that generated a dramatic and unpredicted surge in migrants and refugees who crossed into and applied for asylum in Europe. What was critical for the member states was how they could respond to the SGP to fund the cost of aiding and housing these immigrants. These rules were later applied in 2020 and 2022 to the budgetary costs incurred by the Coronavirus and the invasion of Ukraine.

KEYWORDS:

• European Commission
• excessive deficit procedure
• refugee crisis
• stability and growth pact

Disclosure statement

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

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Notes

1. Communication with DG ECFIN officials, 22 November 2018.

2. Communication with DG ECFIN officials, 22 November 2018.

3. Communication with DG ECFIN officials, 22 November 2018.

4. Communication with DG ECFIN officials, 22 November 2018.

5. Communication with DG ECFIN officials, 22 November 2018.

6. Communication with DG ECFIN officials, 22 November 2018.

7. Communication with DG ECFIN officials, 22 November 2018.

8. Communication with DG ECFIN officials, 15 July 2022.

9. Communication with DG ECFIN officials, 1 January 2023.