Macroeconomic Governance and Dissensus over Liberal Democracy

This chapter explores the ideational and institutional dynamics taking place at the EU level behind the adoption of the new economic governance framework (EGF). Such a framework, which replaced the previous Stability and Growth Pact (SGP), represents a comprehensive reform aimed at enhancing the EU’s financial sustainability and growth while addressing contemporary challenges, particularly following the COVID-19 pandemic. The new EGF was formally proposed by the European Commission in April 2023 and approved in April 2024 after a political agreement by the Council and European Parliament. The chapter discusses the inter-institutional EU negotiations leading up to the adoption of the new EGF, illustrating dynamics of dissensus and contestation over aspects of liberal democracy. To do so, it focuses on ideas about EU economic governance put forward by the European Commission, Council, European Parliament, European Council, and European Central Bank at three distinct levels—philosophical, programmatic, and policy—and concludes by considering the role of discourse in reaching political compromises and in safeguarding democratic legitimacy in EU economic governance.