The Changing Role of the State in Post-COVID Economic Life

Abstract

During the pandemic – similarly to crises of other nature – the role of the state became more important in many economies. However, there is a question over whether this increased importance will be sustainable. In this paper, the author examines one of the most important fields related to this question – the development of public finances. The analysis focuses on the member states of the European Union (EU). The preliminary conclusion is that in many EU member states, there is more acceptance (and even more claim) for stronger public action (and related public finances), however, the picture is far from monochromatic. The specific issue of supranational (EU) public action is also tackled. The steps induced by the pandemic look promising (and in some aspects, even (evolutionary), however, for the time being, the direction and speed of the new processes (potentially leading to more EU-level public action) remain unclear in the long run. Both member state-level and EUlevel changes are important in shaping the future of European integration.