We need a Union within the Union

«We're struggling. That's a good sign. If we weren't, we'd never change a thing.
And building Europe means changing things.»
- Jean Monnet

The European Union has brought more than seventy years of peace and prosperity. However, it was not designed to function in a world dominated by continental empires. A stronger Union must now emerge. Europe is an ageing continent, lagging behind the United States and China in growth and productivity, suffering from low levels of investment and struggling to maintain its social model. At the same time, it is facing a profound geopolitical upheaval: Russia is threatening its security from the east, while its traditional ally, the United States, is becoming at best an unreliable partner and at worst a hostile power.

With only 5 % of the world's population and a (so far) declining share of the global economy, only a more united Europe - economically and politically, capable of ensuring its own security and defence - can effectively confront the three continental powers seeking to divide the world into spheres of influence against a backdrop of the collapse of the multilateral order. Yet even after the aggression against Ukraine and Trump's threats over Greenland, European leaders have failed to launch any bold initiatives to strengthen the Union.

The problem is not a lack of projects, but a lack of consensus among the 27. Letta and Draghi have proposed a series of important measures to boost growth and competitiveness: completing the single market and mobilising public and private investment in key sectors. This should go without saying. Removing national barriers in financial services, telecoms, digital markets and energy would boost the EU economy. The same applies to the harmonisation of bankruptcy and company law.

We also need to complete Capital Markets Union and Banking Union to retain European savings for investment in Europe. Such an economic programme would not only boost prosperity and raise living standards, but also provide the technological and financial base needed to project our power on a global scale to defend our values and interests.

But that is not enough. Europe needs its own defence system, given the unreliability of the United States - and therefore of NATO - and it needs to be able to take majority decisions on foreign policy. The Lisbon Treaty already sets out ways of achieving these two objectives, including the possibility of reform. Yet no progress is in sight.

Recent events illustrate the urgency of the situation. The war in Iran, the blockade of the Strait of Hormuz and the bombing of Lebanon have shown how even the publication of a joint declaration can be paralysed by the veto of a single Member State. Earlier, Orbán's latest veto - blocking a €90 billion Eurobond-financed loan to Ukraine and the 20th package of sanctions against Russia - jeopardised the security of the entire continent, despite Hungary accounting for only 1 % of the EU's GDP and 2 % of its population.

In addition, the Council has so far failed to agree on a single regulator for digital services, telecommunications and financial services - essential for a true internal market - or on a European deposit insurance system, let alone tax harmonisation. Powerful national interests continue to defend cross-border barriers and have effectively taken control of their governments, forming blocking minorities. At the same time, the Council often applies the unanimity rule even when this is not legally required.

Is there a way forward? For certain reforms of the single market, the Council can act by qualified majority. However, major initiatives on taxation, debt, foreign policy and defence are likely to remain blocked by national vetoes. So unless we are prepared to accept the status quo - and jeopardise Europe's future as an independent player - the time has come to create a federal vanguard of willing Member States. That's how we created Schengen and the single currency.

This vanguard would complete the internal market; it would pool sovereignty over the euro, taxation and large-scale investment in technology, climate policy, energy independence based on renewable energies and defence products. It would set up a European Security Council and a defence system with civilian capabilities and its own chain of command, and adopt majority decision-making in all areas, including foreign policy, defence, taxation and financial matters. This «Union within the Union» could be established through a combination of enhanced cooperation between homogeneous Member States, supported by an instrumental treaty to regulate decision-making rules and guarantee democratic accountability.

In such a dangerous world, where our security and survival are clearly at stake, we cannot accept that one capital can hold everyone back. We are convinced that if Germany, France, the Benelux countries, Poland and Spain take the initiative in proposing this «Union 2.0» - open to all - it will act as a powerful magnet for the other Member States that have so far been reluctant to support the necessary reforms.

We therefore call on citizens to mobilise and on European leaders to act in the innovative spirit of the declaration of 9 May 1950.

The Action Committee for the United States of Europe

Signed declaration