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So then assuming the rise of the EU to considerable power in comparison to the US.
Is that a good thing?
Its probably neither good nor bad. I suspect though that the world would benefit far more if the EU was the worlds largest power. Simply because I think the EU is more concerned with the global environment, and issues of pollution.
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Can Europe realistically do better than say the UN at forming a positive alliance?
Yes. If you compare Europe today with Europe even twenty years ago, you will find a far greater level of trans European movement and identity. People today travel back and forth across Europe with the ease that was once reserved for travel inside one's own nation.
The UN has no homogenous identity, but the EU has. European culture is very diverse, but it is still bound up in a common heritage and history.
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Or is this just another stage for the powers of Europe to duke it out for supremacy?
At this stage in the Union, yes.
As time progresses though, and if the plan succeeds, then the boundries and borders will fade, not only from the maps but also from people's minds. The nations will remain, but only as states with a federal structure, and people will come to identify themselves much (I suspect) as Americans do today.