Thanks, Tiebout. You’ve fixed the EU.

Opponents of the European Union’s jurisdictional expansion cite numerous reasons. “Brussels is too opaque,” some say. “Fiscally responsible countries will have to further subsidize irresponsible ones.” Yet, few posit the Tieboutian argument: at status quo, the EU enables the European continent to approach an optimal allocation of public goods. Consider the scholar’s assumptions. The Schengen Area removes international mobility barriers for individuals and businesses, with regional subsidies further lowering relocation costs. The internet, artificial intelligence, and the EU’s language-translation requirements foster the proliferation of information about government services, and the free-movement area includes 29 member states from which to choose. The number of Europeans working remotely has doubled since the pandemic, reducing career-related constraints. Centuries of national division and conflict has limited externality spillover of some public goods. And each nation’s immigration policy suggests there is an optimal population size to which each government aspires. Per Tiebout’s model, a European—his “consumer-voter”—can select the EU member state with the government services which most closely align with their preferences. A health-conscious Hungarian might seek out Finland's air quality, or family-oriented Romanian might enjoy Austria's high law-enforcement efficacy.

Of course, in reality, cultural barriers and job constraints prevent perfect application of Tiebout’s model, which was also designed for local public good allocation. However, never before has the European continent been closer to the model’s assumptions, and largely due to the EU’s integration efforts. At a time in which European public sentiment oscillates between the EU’s dissolution or federalization, perhaps the Tieboutian model can serve as a guiding force. The EU could be an institution which solely seeks to maximize the model’s assumptions, while leaving decisions regarding government resource allocation to its member states. Some public goods, such as defense, may be ceded to the EU, especially to prevent the free-rider problem NATO faces. Yet, Tiebout offers a middle ground which ensures economic efficiency—the goal of programs such as the Schengen Area—while maximizing national sovereignty.