Investing in the Future of the European Union: Lessons from the Canadian model

With the European Commission having recently presented its proposal for the 2028–2032 budget, the European Union is facing a set of unprecedented challenges. This paper investigates how fiscal autonomy and territorial solidarity are reconciled within two distinct governance architectures: the European Union (EU) and Canada. We argue that Europe should more centralize strategic domains like defence, energy, and R&D to boost resilience and global competitiveness. We also stress disparities in education and healthcare across EU States, which undermine cohesion and equity. Inspired by the Canadian model, the paper suggests adopting a fiscal capacity-based redistribution model to ensure fairer access to public services and stronger solidarity within the Union.