Trans-European Networks and Fiscal Federalism: The Rationale of European Infrastructure Policy

Abstract

Trans-European Networks (TENs) in transport, telecommunications, and energy which serve the end of linking together European Union’s member states more closely, completing the Single Market, and thereby fostering economic growth all over Europe are a fascinating notion of European integration. Daniel Höltgen from the European Commission has provided in his paper impressive insights into the options and chances of TENs in transport and the actions already taken by the Commission. The purpose of this paper is to present some general reflections on the underlying economic policy rational for infrastructure policy on EU level, in particular to raise again the old — and ugly — question of subsidiarity, or: what may be the European Unions’s proper role as supra-national and quasi-federal layer¹ in infrastructure policy in terms of fiscal federalism? This perspective seems justified just because TENs are such a fascinating vision of deepening European integration. For infrastructure policy on European level — at least to the extent as it is envisaged by the TEN initiative — is a new feature of common economic policy and may absorb substantial financial resources in the future.² So a careful examination of policy options is called for.