Schmidt’s Vision for Revitalizing EU Economic Governance
On October 5, 2023, Vivien Schmidt, Jean Monnet Professor of European Integration and Professor of International Relations and Political Science, contributed a compelling op-ed to the Social Europe journal. This thought-provoking essay, a revised version of her policy brief for CESIfo in July, delves into pressing issues of European economic governance.
In her policy brief, Professor Schmidt advocates for a paradigm shift in the EU’s economic governance. She contends that the EU urgently requires a permanent debt facility to confront its myriad challenges. Furthermore, she emphasizes the need for fiscal rules that are fit for purpose—shifting the focus from debt reduction to strategic investment. Germany, according to Professor Schmidt, stands as the elephant in the room, presenting obstacles to implementing these fit-for-purpose fiscal rules and hindering EU-level investment capacity.
The op-ed underscores the significance of decentralization and democratization, particularly in the European Semester, to ensure legitimacy at the national level. Professor Schmidt’s comprehensive analysis also addresses the dangers of populist extremism, advocating for common solutions through EU solidarity. These include EU-level debt and fit-for-purpose fiscal rules, providing a holistic approach to address the existential challenges faced by the European Union.
Rooted in her extensive expertise, notably showcased in her book “Europe’s Crisis of Legitimacy: Governing by Rules and Ruling by Numbers in the Eurozone,” Professor Schmidt presents a nuanced approach to economic governance. The op-ed explores her proposals for a permanent fiscal capacity and EU-level investment funds, showcasing her indispensable role in shaping the discourse on the future of EU economic governance.
For a detailed exploration of Professor Schmidt’s key arguments, the full op-ed is available in the Social Europe journal.
Vivien Schmidt is a Professor of International Relations and Jean Monnet Professor of European Integration at the Frederick S. Pardee School of Global Studies and was the first Director of BU’s Center for the Study of Europe, housed at the Pardee School. Schmidt’s research focuses on European political economy, institutions, democracy, and political theory—in particular on the importance of ideas and discourse in political analysis. Read more about Professor Schmidt on her faculty profile.