The discussion on the supply and finance of public goods at European level is part and parcel of the broader discussion on the revision of European economic governance. This paper argues that there exists a mismatch between, on the one hand, the need and popular demand for European Public Goods, especially after the pandemic, and on the other, a continued reluctance to increase their supply and finance them. Whilst the emblematic Next Generation-EU represents a breakthrough, it offers public goods “by aggregation”, rather than “pure” European Public Goods. This mismatch can be explained by the political economy of national decision-making priorities. In this context, we offer a simple analytical framework for analysing and potentially increasing the supply of European Public Goods by operating on changing political incentives and institutional dynamics.

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