Economic ideas, party politics, or material interests? : explaining Germany's support for the EU corona recovery plan

Abstract

Why did the German government champion a debt-financed and grants-based EU corona recovery plan, despite the country’s traditional aversion towards greater fiscal risk-sharing in Europe? To elucidate this question, this article critically assesses different explanatory factors cited in the academic literature and public debate to determine a country’s response to pressing challenges. Tracing Germany’s approach to the corona pandemic within the EU context, it finds that national material interests rather than (new) economic ideas or party politics were decisive. The timing, scope, as well as the limits of the German-inspired recovery plan for the fight against the corona crisis suggests at least as much continuity as change in Germany’s position on EU fiscal policy. Yet, the findings also highlight Germany’s enduring, and in fact reinforced, commitment to European integration and its preparedness to provide stability in moments of deep crisis for the EU.