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A New Concept of European Federalism

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  • Bruno S. Frey

Abstract

By opening markets the European union has been also an economic success. However, with respect to political organization the European Union is far less accomplished. The misguided concept of a successful Europe consists in mistaking integration for harmonization and homogenization. But the essence of Europe is its diversity. No steps have been taken to actively institutionalize competition between governmental units at all levels. The welfare of European citizens could be improved by promoting competition between new jurisdictions. A new type of federalism based on Functional, Overlapping Competing Jurisdictions FOCJ is here proposed. FOCJ form a federal system of governments emerging from below as a response to citizens' preferences. The lowest political units (communes) must be given the freedom to engage in forming FOCJ and must have the right to levy taxes to finance the public services they provide.

Suggested Citation

  • Bruno S. Frey, 2010. "A New Concept of European Federalism," LEQS – LSE 'Europe in Question' Discussion Paper Series 03, European Institute, LSE.
    • Handle: RePEc:eiq:eileqs:03
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    Cited by:

    1. Frey, Bruno S., 2009. "A new concept of European federalism," LSE Research Online Documents on Economics 53366, London School of Economics and Political Science, LSE Library.
    2. Costa-i-Font, Joan, 2010. "Unveiling vertical state downscaling: identity and/or the economy?," LSE Research Online Documents on Economics 27750, London School of Economics and Political Science, LSE Library.
    3. William Outhwaite, 2010. "Europe at 21: Transitions and Transformations since 1989," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 8, London School of Economics / European Institute.
    4. Richard Bellamy, 2009. "The Liberty of the Post-Moderns? Market and Civic Freedom within the EU," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 1, London School of Economics / European Institute.
    5. Kostas A. Lavdas, 2010. "Normative Evolution in Europe: Small States and Republican Peace," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 7, London School of Economics / European Institute.
    6. Erik Jones, 2009. "They Have No Idea... Decision-making and Policy Change in the Global Financial Crisis," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 4, London School of Economics / European Institute.
    7. Gerard Delanty, 2010. "The European Heritage from a Critical Cosmopolitan Perspective," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 9, London School of Economics / European Institute.
    8. Joan Costa-i-Font, 2010. "Unveiling Vertical State Downscaling: Identity and/or the Economy?," LEQS – LSE 'Europe in Question' Discussion Paper Series 20, European Institute, LSE.
    9. Waltraud Schelkle, 2009. "Good Governance in Crisis or a Good Crisis for Governance? A Comparison of the EU and the US," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 6, London School of Economics / European Institute.
    10. Michael Keating, 2009. "Second Round Reform. Devolution and constitutional reform in the United Kingdom, Spain and Italy," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 5, London School of Economics / European Institute.

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    More about this item

    Keywords

    federalism; constitutional economics; public choice; monopoly on territory;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H4 - Public Economics - - Publicly Provided Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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