The dark cloud of the Omicron coronavirus variant may be plunging your plans for the New Year into uncertainty, but there are still reasons to hope that Europe can make significant progress on a range of thorny issues in 2022.
While it is clear we will have to live with COVID-19 for another while, new political constellations have been emerging since Germany’s change of government in December. These will offer the prospect of innovative solutions for long-standing problems in the European Union.
To be sure, there are several things that could go wrong: an uncontrollable surge of more deadly coronavirus variants that set back the economic recovery; a Russian military offensive against Ukraine; a Polish blockade of EU institutions in the battle over the rule of law and EU funds.
However, none of those worst-case scenarios is certain — or even likely. And there are undeniable grounds to be more optimistic about the coming year.
After years of sterile battles over the EU’s much abused fiscal rules — which were suspended at the start of the COVID-19 pandemic — a consensus is emerging that in order to avoid strangling the recovery, budget discipline regulations must be changed before they return to force in 2023.
From the frugal north to the more spendthrift south, there is widespread recognition that public investment will be key to the success of the green and digital transformations of the European economy, and that outdated debt and deficit limits must not prevent this. Along this line, French President Emmanuel Macron and Italian Prime Minister Mario Draghi have jointly called for reform to perpetuate collective EU borrowing beyond the temporary recovery fund created in 2020.
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5 reasons for the EU to be hopeful in 2022 – POLITICO
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