Between 22 – 24 January 2024, the Brexit Institute and the Dublin European Law Institute (DELI) launched a significant new initiative, the Jean Monnet Network PROSPER .

The first panel, titled “Growth and Competitiveness,” was chaired by Prof. Federico Fabbrini, Full Professor of EU Law at Dublin City University and founding director of both the Brexit Institute and DELI.

The first speaker was Prof. Stefania Baroncelli, Professor of EU Law at the Free University of Bozen-Bolzano. She delivered a presentation on the future of the EU’s Economic and Monetary Union (EMU). Baroncelli highlighted the EU’s centralised monetary policy, managed by the European Central Bank, alongside a decentralised fiscal policy, which has encountered compliance challenges, particularly in high-debt Member States. The 2020 Next Generation EU (NGEU) programme marked a significant step towards greater integration compared to the Euro crisis. It addressed pandemic-related challenges through six key pillars: green transition, digital transformation, smart, sustainable and inclusive growth, social and territorial cohesion, health, economic and institutional resilience, and policies for the next generation. Baroncelli noted that the NGEU established a precedent for a more unified EU approach to crises. However, structural changes – such as the war in Ukraine, the rise of global competitors like the US and China, and the EU’s quest for strategic autonomy – have reshaped the Union’s priorities. These developments form the foundation of the 2024 Draghi Report, which advocates a “refocus” of EU resources and institutional structures towards strategic priorities, reducing reliance on Member States and multi-level constitutionalism. The Draghi Report begins with a fundamental assertion: the EU, in its current design, is not globally competitive due to its limited capacity for collective investment at the EU level. For instance, defence remains fragmented and nationally managed, despite the need for it to be treated as a European public good – funded and governed at the EU level. Key recommendations from the Draghi Report include reducing reliance on unanimity in decision-making, centralising defence funding and governance, streamlining EU rules, and reallocating resources to focus on strategic priorities. These proposals require significant efforts from the European Commission and substantial systemic changes, achievable only through treaty amendments.

The second speaker was Prof. David Howarth, Professor of Political Science at the University of Luxembourg, who examined the EU’s financial system as a driver of growth and innovation. He highlighted the importance of completing the Capital Markets Union (CMU), a long-standing EU goal. Despite various initiatives – such as the Commission’s 2021 relaunch, the 2023 Franco-German roadmap, and the Letta and Draghi reports in 2024 – the EU’s financial system remains fragmented, comprising 27 distinct national systems alongside the EU’s supranational dimension. Key issues include the limited impact of securitisation and financial products, the inadequate development of pan-European Pension Products (PEPP), and ongoing criticism of disclosure requirements. To address these challenges, the Draghi Report proposes: standardising financial products across the EU to increase efficiency and accessibility; reforming the European Securities and Markets Authority (ESMA) into a centralised regulator similar to the US Securities and Exchange Commission; strengthening the European Investment Bank (EIB) to focus on sustainable finance and green innovation. However, most Member States, apart from France and Germany, oppose reforms that would expand ESMA’s regulatory powers. Additionally, conceptual issues persist within the CMU framework, particularly concerning the desired degree and nature of financial market integration. A fully functional CMU would inevitably create winners and losers among Member States and firms. Howarth emphasised the need for the EU to rethink linked policy areas, such as pension and social policy, and to implement comprehensive legislative proposals to lay the groundwork for deeper integration and achieve a genuine CMU.

The third speaker was Prof, Eva G. Heidbreder, Professor of Multilevel Governance in Europe at the Otto von Guericke University of Magdeburg, who discussed good governance and economic policy coordination within the EU. She argued that the challenge is not only about improving policy-making but also about ensuring the EU’s ability to steer policy effectively at a political level. Heidbreder noted that the EU stands at a critical fiscal policy crossroads and must make decisive choices about which policy areas to prioritise and how best to allocate resources. In the complex and interconnected phase described in the Draghi Report, a thorough restructuring of the agenda is essential, with a clear focus on investments and resource allocation. To meet emerging challenges, the EU must decide whether to redirect cohesion funds or explore new funding mechanisms. Heidbreder warned that failure to adapt could risk rendering the EU irrelevant, as Member States are unable to address the complexity of cross-border issues on their own due to a lack of both capacity and financial resources. The added value of the EU lies in its ability to provide solutions that individual nations cannot. If it fails to deliver, what then? Heidbreder stressed that the EU must rise to the occasion or risk obsolescence. Stronger and more decisive political leadership within the EU is imperative.

The fourth and final speaker was Prof. Fabian Amtenbrink, Professor of European Union Law at Erasmus University Rotterdam, who examined the analytical framework of stability, growth, and legitimacy within the European Monetary Union (EMU). While the EMU’s primary objective – the creation of an economy that delivers tangible benefits to ordinary citizens – is clear, its conceptual underpinnings remain vague. Amtenbrink questioned the framework’s practical implications: benefits for citizens compared to what alternatives? And under what specific conditions can the EU’s economic governance framework be said to truly serve ordinary citizens? He stressed the importance of defining key concepts more precisely. First, prosperity: Beyond GDP growth, the concept should address societal challenges such as environmental sustainability and economic equality. Second, economic resilience: This should focus on ensuring fiscal and monetary stability, coupled with mechanisms for supranational shock absorption. Third, democratic legitimacy: Achieving this requires tangible benefits for citizens, anchored in transparent and accountable decision-making processes. Amtenbrink concluded that realising these goals demands coordinated action across multiple policy domains. This includes the introduction of a digital euro, reforming the Stability and Growth Pact, and aligning industrial policy with the EU’s broader strategic objectives.

Davide Genini is a PhD candidate at the School of Law and Government of Dublin City University.

The views expressed in this blog post are the position of the author and not necessarily those of the Jean Monnet Network PROSPER.