This chapter looks at the evolution from the “ever-closer union” to an EU marked by differentiated integration (DI). It looks at a number of models with DI characteristics, particularly at a Breugel Institute model which envisagess a number of discretionary buckets (e.g. Economic and Monetary Union and security) and an inclusive “barebones” superstructure comprising issues of rule of law, trade, and the single market. The chapter broadly endorses the model, while noting a number of challenges. It argues for the inclusion of risk management, in particular the European Systemic Risk Board (ESRB), within an inclusive not-so-barebones superstructure. The chapter reviews the macroprudential measures taken at the outset of the Covid-19 pandemic, and considers how, and whether, to unwind them as the crisis passes while ensuring the EU remains safer that before. Finally, the chapter considers whether the proposed reforms should be introduced with Treaty change. While recognizing the difficulties, the chapter argues for Treaty change and makes proposals to maximise the likelihood that the Treaty change process will be successful. © 2021, The Author(s), under exclusive license to Springer Nature Switzerland AG.
Inclusive and Differentiated: Building Back Safer