Rosalba Famà, a legal scholar and recent doctoral graduate from Bocconi University, has explored the constitutional implications of the European Union’s shift in budgetary policy following the COVID-19 pandemic and the war in Ukraine. In her research, Famà highlights how the EU’s financial response to these crises marked a significant departure from the austerity measures of the 2008 financial crisis, instead embracing solidarity through large-scale borrowing and joint financial instruments. This was the first time in EU history that the European Commission borrowed on such a scale to provide grants and loans to member states, fundamentally transforming the role of the EU budget.
Famà points out that this paradigm shift raises important legal and political questions, particularly around transparency and democratic accountability. While improvements have been made, she notes there is still room for greater clarity and oversight. Her work also references the Draghi report, which emphasizes the need for continued EU-level investment in key sectors like the green and digital transitions and defense, and suggests that the 2020 Recovery Plan could serve as a model for future collective action, despite its unique legal character.
Her research delves into historical precedents for EU-level borrowing, tracing mechanisms used during the 1970s oil crisis and drawing parallels with recent financial assistance programs. Famà’s archival work, supported by a European Court of Auditors fellowship, has enriched her academic and practical understanding of EU financial governance. She hopes her findings will inform future policy proposals on managing borrowed funds, in line with recommendations from the European Court of Auditors.
Source: European University Institute
