The European Union is the most prominent example of the rise of global policy networks formed to bring together public and private actors on issues critical to the global or in this case European public interest.The recent and ongoing financial crisis in Europe signals the failure of global governance as defined by Anne-Marie Slaughter. This supranational institution is not maximally effective as described by Slaughter. This has become evidently clear in the handling of the economic crisis. The size and scope of a supranational institution has threatened the sovereignty of individual nations and individual liberty and democracy.
The European Commission, together with the European Council, has proposed to make euro states sign binding contracts, committing them to strict fiscal consolidation, and has pushed for a European banking union with a European finance minister, inviting the Member States of the European union to move towards closer economic coordination. These papers have outlined preliminary proposals for more financial integration, essentially turning the European Commission into an European government. Should individual states be forced to transfer sovereignty to this supranational institution that will determine an entire region’s economic policy whose individual nations have different economic needs? Will democratic control go hand in hand with these steps? The question of a real European government, European democracy, a European Constitution is back on the table.