This paper discusses the challenges facing health technology assessment (HT
A) in Europe, based on an explicit analysis of the characteristics of an "o
ptimal" HTA system. It has three objectives: a) to elaborate an explicit sy
stem of policy goals and the characteristics of an optimal HTA system that
facilitates the achievement of these goals; b) to identify the general inst
itutional incentive barriers (government and market failures) that prevent
the attainment of an optimal HTA system in Europe; and c) to argue that eva
luation of the implications of health technologies for equity and inequalit
y in health is an essential part of this optimal system and a considerable
challenge for HTA decision makers. especially as national governments reali
gn policy toward equity goals.