Federalism and European Union examines the decision to adopt EMU as a federal bargain by the European Union as designed to provide the countries of Europe with a bulwark against the volatility of the international economy. Although the precise motives of the participants varied from country tocountry, all were agreed that only federal like political and economic arrangements would provide a guarantee of economic and political stability. The author provides a coherent theoretical framework for understanding the decisions taken at Maastricht and later. By making comparisons with other federations, the book also examines the political and economic conditions under which federations succeed or fail. It concludes that EMU will only bepolitically sustainable if novel ways are found to limit centrally imposed fiscal and spending policies.