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23 September, 2024 | Andrea Capati, Maria Giusti and Mark Thatcher

Devising Multi-Level Strategies of Post-Crisis Recovery and Resilience

 

The Covid-19 pandemic has fundamentally challenged governance, democracy, and international cooperation across the globe. In Europe, the crisis exposed vulnerabilities within the European Union (EU) and its member states, prompting a reassessment of policies and institutional structures. This article summarises the REGROUP policy paper “Devising Multi-Level Strategies of Post-Crisis Recovery and Resilience” in which we put forward a set of recommendations for EU policymakers on how to handle future crises in a more effective and democratic way. Our advice regards three main areas: 1) EU governance and policies; 2) democracy and legitimacy in the EU; 3) EU actorness on the global stage. In the remainder of the article we look at each in greater detail.

 

EU Governance and Policies

The pandemic highlighted the need for robust governance structures capable of responding swiftly and effectively to crises. Our policy paper outlines recommendations to strengthen EU governance and policy frameworks, primarily looking at two aspects:

Enhancing fiscal resilience. To better prepare for future economic crises, the EU should consider adopting innovative fiscal tools. This could include creating a permanent European Stability Fund, introducing a Digital Euro, and implementing counter-cyclical fiscal policies as well as the more politically controversial issuance of Eurobonds. These measures aim to improve economic stability, foster growth, and enhance the EU’s ability to respond quickly to crises.

Supporting precarious workers. The pandemic revealed significant gaps in social security systems, particularly for professionals on short-term contracts, such as those in the cultural and creative sectors. Member states should ensure they have dedicated units to effectively mitigate the adverse effects experienced by professionals who rely on short-term contracts during crises and emergencies. These units should manage the smooth flow of data and information crucial for emergency responses, such as the number, condition, and income of affected workers, and adopt a forward-looking approach to developing tools and procedures, such as inclusive and adequate unemployment benefits, to effectively mitigate adverse effects.

 

Democracy and Legitimacy in the EU

The pandemic also tested democratic processes and legitimacy across the EU, as many governments concentrated power in the executive branch to manage the crisis. The REGROUP policy paper recommends several strategies to safeguard democracy and enhance legitimacy:

Rebalancing decision-making powers. During the pandemic, the European Council took on a quasi-legislative role, potentially overstepping its mandate and limiting the involvement of other EU institutions. To avoid this in future crises, the European Council should focus on its agenda-setting functions, allowing the European Commission, Council, and Parliament to negotiate and develop policy measures while retaining discretion over final decisions. This approach would help maintain a balance of power and ensure more democratic participation in crisis management.

Strengthening parliamentary involvement. National governments often relied on emergency powers during the pandemic, centralizing decision-making in the hands of national executives. In the future, national governments should consider involving to some greater extent national parliaments in the elaboration, definition and implementation of policy measures to strengthen the democratic legitimacy of the political process. For instance, this could be achieved by streamlining national legislative procedures, so that parliamentary action can also take place in a timely manner and policy response measures can be thoroughly discussed by parliaments before the final approval.

Improving communication and transparency. The legitimacy of emergency measures often depends on how well leaders communicate their decisions to the public and other stakeholders. EU and national leaders should adopt more transparent communication strategies, such as regular public statements, parliamentary hearings, and media interviews, to explain and justify their actions during crises. This would help build trust and secure public support for emergency measures.

 

EU Actorness on the Global Stage

The REGROUP policy paper also explores how the EU can strengthen its role in global governance and better respond to international crises:

Persist in adopting anticipatory governance. To enhance its framework for crisis governance, management, and response, the EU should continue adopting anticipatory governance tools and promote international cooperation for employing such strategies. To improve the collective capacity to identify emerging and long-term trends and proactively manage crises before they evolve into systemic global shocks, the EU could foster a global network for sharing knowledge and resources. For instance, it could promote the utilization at the international level of platforms that enable more effective and comprehensive data collection and implement advanced monitoring systems and predictive analytics.

Fostering internal cohesion. The COVID-19 crisis underscores the urgent need for policies that bridge national disparities and align member states with the EU’s overarching objectives. For this reason, the EU should prioritize developing tools and procedures to align member states’ priorities to strengthen its ability to project its values and safeguard its interests on the international stage during crises and emergencies.

 

This article highlights some of the findings in the REGROUP paper “Devising Multi-Level Strategies of Post-Crisis Recovery and Resilience“.