Annual report - 2006

At the start of 2007 it was easy to be gloomy about the state of the European Union. Its governments cannot agree on the institutional changes that are needed to make the EU run better. The core euroland economies are stifled by a lack of structural reform. Externally, the member-states differ on how to deal with their large and worrisome neighbour, Russia. The Union’s underlying philosophy of openness and integration, and of co-operating and pooling sovereignty to solve common problems, has few eloquent proponents among European leaders.