Chair of the panel: Zina Nimeth

Speakers: Pascal McDougall, Balász Szechy, Marco Bevilacqua.

Economic inequality is a prominent concern in contemporary European societies. The European Union tries to narrow them by means of instruments like the structural funds, while navigating accusations of actually increasing inequality through its market-oriented policies. 

Firstly, Balász Szechy discussed the recent evolution of Cohesion Policy, which is deployed through the EU’s structural funds, and its challenges ahead of the next budgetary period. Besides fostering economic and social convergence, the structural funds are currently used towards promoting a competitive economy and enhancing the Single Market. However, this “sea of objectives” has attracted criticism, opening a period of reflection on what the funds should be used for and whether they achieve their initial aim of narrowing economic inequalities. 

Following Szechy’s presentation, Pascal McDougall explored the legal foundations that could justify the Union’s obligation to reduce unemployment. McDougall defended that academic scholarship has not sufficiently explored the array of legal arguments that could be posed against Euro-crisis austerity measures. His presentation posited that the construction of the European and Monetary Union, and Member States’ relinquishing of competences on monetary policies, conferred on the EU an obligation to use all tools at its disposal to secure full employment and refrain from decisions that could harm it.

Lastly, Marco Bevilacqua explored the EU economic governance framework in the light of the latest changes introduced in 2023. Based on a top-down model in which the national governments have to show compliance the principle of structural budgetary balance, the new reform will give more margin for negotiation between the Commission and Member States based on the national plans’ targets and milestones. Bevilacqua explored how this new system affects the balance between different institutions and between different views on public finances. 

After these presentations, the chair of the panel Zina Nimeth opened the floor for discussion and reflected on how different dimensions of inequality interacted with each other in the European setting.