Transformations in the Monetary and Financial Policy of the European Union under the Influence of COVID‑19

Abstract

The article analyses institutional changes in monetary and financial policy mechanisms, including the temporary «freezing» of the Stability and Growth Pact as an extraordinary anti-crisis policy measure under the influence of the COVID‑19 pandemic. We considered the anti-crisis instruments of the operational mechanism of the unified monetary policy and their impact on the «inflation» of the ECB balance sheet. Trends and directions of strengthening the regulatory role of the ECB and the general budget of the EU in the integration processes in the European Union are analyzed. We based our research on dialectical, systemic and institutional approaches. Also, we used methods of comparative and statistical analysis. Based on our study, we revealed the features of the new approaches of the European Central Bank to the broad interpretation of the monetary policy strategy. Further, we identified transformations in the operating mechanism and tools of the unified monetary policy under the influence of the COVID‑19 pandemic. Finally, we determined and assessed the priority orientation of the EU general budget expenditures for 2021–2027 and new collective funds to tackle the crisis to promote innovation and improve the competitiveness of the European economy.