W hile conservatives frequently offer trenchant criticisms of the European Union (EU), they are short on constructive suggestions about how the European project should be reformed. The tradition of international federalism, which exists in free-market thought, can be a source of such a reform agenda. Understood properly, a federalization of the EU does not mean an unqualified transfer of powers to Euro - pean institutions. Instead, federalism provides a frame - work through assigning authority to different levels of government.