Die Schuldenfinanzierung von NextGenerationEU: Gekommen, um zu bleiben?

With NextGenerationEU (NGEU), macroeconomically significant debt has been incurred via the European Union (EU) budget for the first time. It is controversial whether this marks the start of continuous EU debt. This article analyses the interests of the Member States and European institutions with regard to a possible perpetuation. The analysis differentiates in accordance with the NGEU structure between EU debt that is used (i) for loans to Member States, (ii) for grants to Member States and (iii) for EU programs. It shows that the unexpectedly high financing costs of the EU make the first two uses less attractive. The financing costs also speak against the third option, as does the Member States’ focus on reflows and the rather declining consensus on desirable European public goods. The analysis concludes that new EU debt on an NGEU scale is unlikely without the catalyst of an acute crisis.

Heinemann, Friedrich (2024), Die Schuldenfinanzierung von NextGenerationEU: Gekommen, um zu bleiben?, integration 47(4) , 294-312