Subsidiarity for a Changing Union

Abstract

In this paper, we develop an economic model of subsidiarity and discuss the ways in which this instrument should best be applied in the context of a changing European Union. The results suggest that the application of the subsidiarity test in the context of a union with growing membership requires both a prospective and retrospective analysis of the reallocation of competences between states and Union. Absent such a dynamic application, the instrument of subsidiarity could become an instrument of entrenched centralization, contrary to its historical origins and functional purpose.

Keywords: subsidiarity, centralization, devolution

JEL Classification: D70, H73, K33, P16