The article discusses the issue of federalization of criminal law in the UE. The models of federal criminal law legislation are presented with a focus on the US and Australia. Then the author looks at the competences of the EU in the area of criminal law. Recent establishment of the European Public Prosecutor’s Office is given due attention as a step towards federalization of investigation and prosecution. Advantages and disadvantages of having federal system of criminal law are presented. The author is of the opinion that federalization of European criminal law is inevitable, however there are also numerous problems related to the process. Therefore the experience of federal states should be taken into consideration while creating the EU federal or quasi-federal system.