European public goods

Abstract

A well-functioning economic union needs a permanent central fiscal capacity. Stepping up the supply of European Public Goods (EPGs) delivered and financed at EU level appears the most promising avenue. EPGs should meet a number of criteria at the intersection of the economic theory of public goods, the theory of fiscal federalism, and EU-specific institutional and political features. The green, digital, and social transition; the supply of critical raw materials; health; security; and defence define the areas where economic, institutional, and political coherence meet. Several issues still need to be addressed before EPGs could be launched at the appropriate scale. However, the ongoing mid-term review of the EU Multiannual Financial Framework provides an opportunity for bringing EPGs to the centre of the policy debate.