Thursday, February 12, 2026

On the E.U.’s Complex Federal System

Because the “the EU is built on consensus at 27” states,[1] by 2026 it had become painfully obvious to Europe’s elite that its Union had come to harbor a great disadvantage in terms of united or collective action because political consensus can be elusive even at 27 states, each of which could result to a veto on reforms at the federal level, with enlargement of the Union from 27 on the horizon. Something had to be done, given the intransigence of the principle of unanimity in the European Council and the Council of Ministers. Direct access of the state governments at the federal level could stave off too much federal encroachment on the prerogatives of the state governments, but the costs associated with this safeguard were becoming too high. Therefore, in February, 2026, E.U. state and federal officials met to give added weight to something called “two-track Europe.” In actuality, there were already more than two tracks in the European Union. Although complex, the means of releasing the Union from the high bar needed to achieve unanimity or even consensus among the several states could well save the Union from the paralysis of division. The outdated premise that united action should only be allowed when there is no division had become too utopian for federal Europe. Multiple-speed Europe in the E.U. is actually more in line with the E.U.’s federal system already being genuine.

In February, 2026, “frustrations about the pace of [economic] reforms prompted” more interest in groups of states moving forward with respect to federal legislation that would be binding only on those states.[2] Mario Draghi, a former head of the European Central Bank, “recommended exploring the use of enhanced cooperation to ‘move faster’ in high-priority areas such as the Savings and Investment Union, the single market and energy prices.”[3] Already, the European Public Prosecutor’s Office (EPPO), patent and divorce law, the Schengen Area and even the euro itself constituted examples of federal law binding on some states but not on others. The term, “enhanced cooperation” is misleading, for it omits the important point that the states falling under a federal law are obliged to abide by it. This point is an important one, especially in the case of the Schengen Agreement. The E.U. already had a genuine federal system, meaning that dual sovereignty was already the case.

Undergirding the creative approach to federalism—more creative than the unitary approach of the U.S.—were informal blocs of E.U. states, “such as the ‘Frugal Four’ and the ‘Friends of Cohesion,’” the Weimar Triangle, the MED9, the Visegrad group, and the Nordic-Baltic Eight.[4] Perhaps the easiest comparison to the U.S. is the bloc of Great Lake states that must all sign off on fresh-water being taken by other states from the Great Lakes. Given the climatic and cultural differences that exist between the American states, more such blocs would not be a bad idea. The key would be that relevant federal law would only apply to the states in a given bloc. The binding nature of the respective law renders both the E.U. and U.S. as something more than blocs, of course. Creative arrangements within a genuine federal system does not stop the system from being federal; rather, such arrangements fit well with the fact that federal systems are tailor-made precisely for cases in which interstate differences are significant. Rather than containing “multiple speeds,” as if every bloc should eventually converge at the most integrated one within the Union, complexity better denotes the E.U.’s way out of the prison of unanimity. Cases in which a federal system makes most sense are hardly those in which one size fits all, so the American doctrine that a federal law must apply to every state is actually inferior.



1. Jorge Liboreiro, “Leaders Embrace Two-Speed Europe to Break Impasse as Macron Sets June Deadline for Economic Reset,” Euronews.com, February 12, 2026.
2. Ibid.
3. Ibid.
4. Ibid.