The Federalist Manifesto

Europe is passing through a period of turbulence and uncertainty. The European Union itself is in deep trouble. The long financial crisis, which has led to economic stagnation, unemployment and political fragmentation, has exposed not only the flaws in the design of the Economic and Monetary Union and the weakness of EU institutions, but also a lack of commitment to European integration by EU states. As a result, the European Union has lost the trust of many citizens.

If the European Union is to survive for years to come, it must pursue the paths of social peace, prosperity and political unity through the business of democratic government. A federal Europe with strong democratic institutions is the only way to meet this challenge. Europe will not be united if it is not democratic. And it will not be democratic if it is not a federation.

The process of building a genuine European federal union begins with the eurozone and those states genuinely committed to joining the euro. First, we need a banking union to wipe out bad banking practice and to reduce the burden of debt which is destroying opportunity for too many European citizens. We need adequate forms of taxation and new forms of debt instruments at the EU level. The eurozone must have its own fiscal capacity, capable of contributing to macro – economic stabilisation.

The EU budget should be financed by genuinely autonomous own resources – such as taxes on carbon emissions or financial transactions – which, by moving away from the current system of direct national contributions, will allow the federal core to escape from the paralysis of juste retour.

Deeper fiscal integration means moving towards a true political union .