Country: EU27
Period: 2007-2008
Client: DG Budget/B05
Funding agency: European Commission
Staff involved: Ferry Philipsen, Nicolai van Gorp

The purpose of the study is to make proposals as to the main areas of policy in which expenditure from the EU budget should be concentrated. These proposals will be based on a coherent and robust methodology to be elaborated by the study and which will, on the one hand, draw on relevant political economy theories (such as 'fiscal federalism' and multi-level public finance) and, on the other hand, take full account of the subsidiarity and proportionality principles as enshrined in the texts of the EC Treaty.

• Research:
  By means of a literature study Ecorys gives an overview of arguments in favour or against (de)centralisation of policy areas. The arguments stem from different economic schools (such as public finance, public choice, institutional economics, etc).
   
  
• Concept development:
  The arguments from the literature study are consolidated into an assessment grid. This allows for a structured and clear overview to assess what government tier(s) should be involved in which policy domain.
   
  
• Vision and Strategy development:
  Ecorys produces a visionary document which, by normative analysis, provides an answer to the question “which policy areas should belong to the domain of the European Union?”
  Subsequently, a strategy is developed on how to move towards this vision, given the current political environment.

The final report can be downloaded here.