First, a clearer delineation of responsibility could lead to better economic outcomes, as policies that have been designated as a national competence can then be better tailored to local circumstances. Differences in economic circumstances and institutional settings, as well as national preferences, can be taken into account.
Second, national sovereignty over the design of certain policies naturally allows multiple approaches to compete with each other, potentially spurring innovation and accelerating the identification of best practices. The EU offers a unique space for such policy competition, not just because of the diversity of its Member States, but also because of its common institutional framework.