++ [ originally posted by Kaiser Franco ] ++
Most of the things you evoked are already present. 50% of new legislation in European countries now emanates directly from Brussels. We already have a European executive power : the Comission, whose President is the Italian Romano Prodi. He is appointed by the heads of states and governments in the European Council of Ministers, but as the Comission is evolving into a de facto European government, he will rather sooner than later be directly elected by the citizens. We have a legilslative branch : a European Parliament, whose role is to check the action of the Comission (it has the power to make it resign, like it did in 1999). And finally we have a judiciary branch, the European Court of Justice, which is protecting citizens' and member states' rights (for instance I have now the power to sue my country at the Court if I consider that it infringed or abused my rights).
One of the most essential principles of the EU is the so-called "principle of subsidiarity". This means that all decisions should be taken at the local level first, and that EU legislation or directives should only be implemented when local legislation does not contemplate a solution. Member states have handed over considerable shares of their sovereignty to Brussels over the years, but veto rights remain in crucial areas such as taxation, defence and welfare systems.
No one (apart from a few europhobic English tabloids) seriously believes that we are losing or will lose our national cultures and identities. In tomorrow's Europe, Italians will still drive Vespas, Dutchmen will still grow tulips and Hungarians will still eat gulash, lol. What has already happened is an erosion of nationalisms, which to me is an excellent thing. Nationalisms are the main reason why our Continent has been teared apart by wars for over two millenia. Since the creation of the EU, we have been at peace with each other for 60 years, the longest warless period ever. And we have learnt to know each other like never before, as the suppression of borders allows me to cross Europe from Finland to Portugal without needing a passport.
Regarding a European Army, we are set to create a small but highly trained 60 000 rapid reaction force. This will probably be a first step towards a proper European Army. Again, this is only natural in my opinion. So far we are an economic giant and a political dwarf, a bit like the US were at the start of the XXth century. Having made an internship at NATO, I must say I wasn't very happy with the decision-making process there : basically all partners sit around the table and take orders from the American delegate. I think we should be able to stand on our feet without constantly rely on the US, like in the Kosovo war. This will benefit both Europe and America.
I don't think that the emergence of the EU, China and eventually India as global powers will be nefarious to less well-off nations. On the contrary, a multi-polar world will provide more voices and options. The US and a strong EU should be more able to press China to make democratic reforms follow their recent economic liberalisation. A politically assertive EU could propose its own solution to the israelo-palestinian conflict, instead of just criticising America's unconditional support for Israel. The same goes for all those war-torn and famine-stricken African countries which are currently being left aside. And although the US and Europe are political allies (despite recent disagreements), we are direct economic competitors. And competition is good for everybody. The euro is quickly asserting itself as a solid alternative currency to the dollar. OPEC countries for instance are considering switching their petro-dollars into petro-euros, because the currently strong euro would make it more convenient for them to sell their oil. Finally the EU is being emulated by other groups of countries : South-East Asian countries have created their own free trade area, ASEAN, while Brazil, Argentina, Uruguay and Paraguay have founded the Mercosur.