The paper applies Dani Rodrik’s governance trilemma to the EU. Rodrik’ embedded liberalism option is a matter of the past, his golden straightjacket is politically and normatively unsustainable. Rodrik sees his third option, global federalism, as a long-term solution only and advocates a more modest global governance solution. While this option, coupled with differentiated integration, might be a plausible avenue for the EU in many areas, we argue that it is not sustainable in a specific but highly relevant subset of integration: The creation of substantial capacities in core state powers involving huge redistributive effects, a huge impact on individual liberties, and high political salience. Examples would be an integrated European army, a common police force, or a substantial, tax-financed budget. The more the EU moves into that direction, the more it moves towards a federal order and is in need for clear system boundaries in order to allow for the restructuration of political competition and democratic accountability.
