Publication

This paper analyzes the allocation of economic competences between the EU and its member states using the theory of fiscal federalism. According to the theory, the transfer of economic competences from a lower to a higher political level always leads to a negligence of individual preferences and can therefore only be economically justified if national policies cause strong spillovers to other jurisdictions. Based on this approach, the author proposes an allocation of economic competences that can serve as an overall guideline for a European constitution.