Under construction: Brian Easton looks at the state of the European Union in light of his observations during a recent visit.

• Author: Easton, Brian

While the European Union was established in 1993 (the European Economic Community began in 1958), its ultimate structure is still not settled, as illustrated by the lack of integration of its energy system and the incomplete nature of its monetary union. Progress to an ever more perfect union is limited by the desires of member states to maintain a maximum of sovereignty. The difficulties of moving forward have been highlighted by the monetary crisis that has enveloped Greece in recent years. This episode has demonstrated once again that the ever more perfect union involves member states giving up chunks of sovereignty.

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There is a bit of a construction shambles around the buildings that house the European Union in Brussels, with new buildings, buildings retrofitted for energy efficiency and improvements to the subway and public surrounds. It is not that the activities of the European Union are necessarily compromised, but it symbolises that the 'more perfect union' it seeks is far from complete.

That is well illustrated in its energy union. The EU energy system is not unified; integrating it is one of the priorities of the recently appointed new president, Jean-Claude Juncker. The problem became more acute last year when it was realised how dependent some of the 28 member states were on imported Russian gas. A third of the EU gas comes from Russia, and half of that through Ukraine.

Given a hard winter and a bullying Putin, a cut in the supplies could have left some very cold and vexed EU citizens, especially in the east. Mercifully, the winter was mild and Russia needed to sell gas for foreign exchange. (Its cut-back of supplies to Ukraine could be justified in commercial terms because they got behind in their payments; yeah right.)

There are other sources of gas from overseas, including Australia, but the shipping terminals are limited and it is not currently possible to send the gas from west to all of the east because some of the pumps are not reversible. Terminals are being extended and built and the pumps are being given a reverse capability. The risks will not be as high next winter even if it is more severe and Russia is more belligerent, but the situation is a stark reminder that the EU energy system is not integrated, not even physically, let alone commercially; EU energy policy is under construction.

The European Union's problem arises because most of its member states have a national monopolist in charge of gas supply...