This constitutional and institutional development of the European Community, and federalism in particular, are widely and intensely debated. The issue of federalism has proved to be divisive and misunderstood. This book provides a critical reappraisal of the political, economic, and socio-cultural potential of current federal political-institutional arrangements. It includes both an analysis of their necessary preconditions as well as evaluation of their advantages and disadvantages compared with other forms of state organisation.The authors examine the issue at the level of the Community, the member states, and the states of Central and Eastern Europe reflecting the increasing interdependence and interplay of these three levels; nation states in all parts of Europe influencing only one another and the Community, and being influenced by it. The book concludes with an overall assessment of the federalizing processes at work in Europe, both at the Community and nation state level, and pints out the problems, paradoxes and likely outcomes of these processes.