Abstract
The paper focuses on the problem of a simultaneous deepening and enlargement of the EU from the perspective of club theory. The EU can be perceived as a club that provides several non–rival but excludable goods to its members. Contrary to purely collective goods, for which the club size is infinite, club theory starts from the assumption that membership size is an endogenous variable, as is the provision level of club goods. In order to enhance the quality of EU governance, it is concluded that the increasing heterogeneity of EU members requires a systematic initiative of creating clubs within the club. The treaty agreed at the Nice summit in December 2000 has been as insufficient to meet these requirements as will be the Treaty establishing a Constitution for Europe.
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