Structural core–periphery divergences in the EU: the case of responses to the COVID-19 crisis in 2020

ABSTRACT

Pandemic responses within the EU deviate from past large-scale crisis management substituting the austerity paradigm with the normalisation of generous fiscal support. Yet, traditional north-south fault lines remain. The article addresses such a puzzle systematically assessing the core-periphery divide in pandemic management and outcomes across the EU 27. The analysis highlights gaps and geographical heterogeneities across the north-south divide, refuting their sole attribution to differences in the scale of the health crisis. Conversely, we show the contribution of containment measures to heterogeneous economic outcomes across the core and periphery, which extend to the Southern Member States marginally impacted by the outbreak. Findings confirm the pandemic furthered divergences across the Member States, highlighting how the absence of austerity alone is not sufficient to enact convergence within the EU27. Supporting structural imbalances and the need for transnational solidarity, the work contributes to the debate on core-periphery relations and the future of economic integration in the context of the Conference on the Future of Europe and foreseen reform of the Stability and Growth Pact.

KEYWORDS:

• COVID-19
• coronavirus
• EU economic governance
• EMU
• Next Generation EU
• N

Disclosure statement

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

Notes

1 Usual classifications of core as Austria, Belgium, Denmark, France, Germany, Luxembourg and the Netherlands and (Southern) periphery as Cyprus; Greece; Italy; Malta; Portugal and Spain (e.g. Censolo & Colombo, 2016)