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Abstract Many observers of EU politics viewed 2005 as an annus horribilis, and 2006 has brought little relief. Again and again, politicians and pundits of all stripes have proclaimed the EU to be ‘in crisis’. Events great and small, from the French and Dutch ‘No’ votes on the European Constitution, to the stalled budget talks, to threats of Italy quitting the Euro, to the rising tide of protectionism, to alleged strains on the EU’s absorption capacity, are routinely portrayed as threats to the very survival of the Union. Many policymakers and scholars maintain that the EU’s current institutional arrangements will not function in an EU of twenty- five (or more) member states, and that without significant reform, the EU’s institutional machinery will grind to a halt.
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