Investing in the single market? Core-periphery dynamics and the hybrid governance of supranational investment policies
Résumé
This article examines the impact of supranational investment policies on the resilience of the common market project and its impact on core-periphery dynamics. Reconstructing the hybrid governance processes around the Investment Plan for Europe (2015–2020) and its geographical distribution, it finds that these policies were effective in channelling funds to the Southern periphery after the Eurozone crisis, but aggravated the core-periphery dynamic for Eastern Europe. This fact stems from the differential presence of national public financing institutions as well as unevenly developed capital markets, two factors that are linked to the multi-level and public-private governance mix in the EU’s investment policies. These results hold implications for how to assess follow-up programs such as InvestEU and the Sustainable Investment Plan in the European Green Deal.