Will the European Union collapse?

The European Union is an ambitious concept but it was broken by the financial crisis of 2008. The financial crisis can be summed up as the aftershock effect of the Iraqi war and cheap money produced by the Federal Reserve, and mismanagement by international banks. But the financial crisis was also a test for the European Union, a test they failed. The crisis redefined the boundaries of the state and corporations. Aside economic consequences the financial crisis also had political consequences. State power was increased and market autonomy was reduced. After all if you don't control your financial system or currency you are deeply vulnerable to the actions of other countries.

The crisis also showed the importance of national sovereignty. And once that was realized the European states were unwilling to give up their sovereignties. There is no quick fix for the crisis and it will continue for several more years. In the end it comes down to one fundamental point. If the European Union members give up their sovereignties, then the Union will survive and if they don't give up their sovereignties then the European Union will not survive.