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As a matter of practicality, law has to be EU centred, otherwise it would not work, but it is still the case that the Council of Ministers focuses national sovereignty and remains the crucible for key sensitive area decisions, and this selections of equivalent ministers are derived from national government executives (which is surely wrong - executives have to be accountable to parliaments). People talk about Brussels bureaucrats etc., but the Commission proposes legislation about which the Parliament can adopt a stance, or the European Parliament can ask the Commission to make a proposal; the Council of Ministers and in ordinary cases the European Parliament share co-decision rights (thus providing some check on executives that come together to make decisions) but on sensitive areas the European Parliament is limited to an advisory view.
So this makes the European Parliament important, but it is not federal. If it was federal then sovereignty would exist at European level, rather as it does in the United States at the level of the United States. Even then decision making should be heavily decentralised.
The trend is also to give more powers back into national and regional parliaments and assemblies, as would be the case with the Lisbon Treaty - decision making down as well as up.
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