This constitutional and institutional development of the European Community, and federalism in particular, are widely and intensely debated, and 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 organization. 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 theses processes.