Their article was published on the website of Bruegel, a European think tank specialising in economics.

The European Union (EU) is rethinking how it provides public services at a time of shifting priorities, such as security, defence, and sustainability. This approach could involve greater use of European public goods (EPGs) – policies and services financed and coordinated at the EU level rather than nationally.

Why shift to EPGs?

The EU budget accounts for just 1% of GDP, much lower than national public spending in member countries (around 50% of GDP) or the United States' federal budget (22.5% of GDP). Traditionally, the EU has focused on agriculture and regional development. However, new challenges - like defence, energy transition, and border control - may  benefit from economies-of-scale and cross-border collaboration.

Advocates argue that EPGs improve efficiency and welfare. Some of the examples provided include:

• Cost Savings: Coordinated vaccine procurement during COVID-19 saved money compared to individual national efforts.
• Energy Security: Joint energy purchases boost negotiating power.
• Economic Benefits: Investment in shared infrastructure, like renewable energy, could drive EU-wide innovation and create export opportunities.

Key areas for using EPGs

EPGs are well-suited for areas with cross-border impacts or high costs of uncoordinated national efforts. Examples include:

1. Defence and Security: Coordinated procurement reduces duplication and strengthens collective capabilities.
2. Green and Digital Transitions: Investments in clean energy infrastructure and digital technologies can be scaled more efficiently.
3. Crisis Preparedness: EU stockpiles for pandemics and natural disasters can prevent under-preparedness at the national level.

Funding to tackle challenges

Funding EPGs often meets resistance due to concerns over increased tax burdens or unequal benefits. But using existing EU mechanisms like the European Stability Mechanism (ESM) could make financing easier without adding to taxpayers’ bills. The ESM, originally created for financial crises, has €422 billion available. This could be used to support EPG investments through low-interest loans.

The path forward

The upcoming EU budget cycle (2028–2030) presents an opportunity to debate EPG expansion. Urgent priorities like defence and security are likely to lead the way. If successful, this strategy could strengthen the EU's global influence and deliver significant cost savings for citizens. By pooling resources and addressing shared challenges, the EU could achieve more effective and efficient outcomes. While political hurdles remain, the case for expanding EPGs is growing stronger as Europe faces new global and domestic pressures.

Read the full article European public goods: the time for action is now; authors: Kalin Anev Janse,  Roel Beetsma,  Marco Buti,  Klaus Regling, and Niels Thygesen.