From deregulatory pressure to laissez faire: the (moderate) social implications of the EU recovery strategy

Abstract

This article assesses the impact of the EU recovery strategy in (re)aligning the EU with the pursuit of its social objectives, including those defined in the Porto Declaration. First, the focus is on the major innovations introduced by the NextGenerationEU (NGEU) plan and SURE (a temporary instrument aimed at mitigating unemployment risks during the pandemic) in relation to the social dimension of EU integration. Elements such as the incentive for public investments, softer forms of macroeconomic and fiscal conditionality, and the valorisation of the European Pillar of Social Rights constitute fundamental differences from the approach that had characterised the euro crisis. Subsequently, however, the article shows that this greater openness of EU governance towards social and labour protection policies does not translate into a tangible strengthening of safeguards in the national recovery and resilience plans. The article then argues that achieving the EU's social objectives requires the establishment of more effective incentives, and concludes by proposing a roadmap for future reforms.