There are at least two Europes and probably more. It is essentially divided along linguistic-cultural lines of countries where the main language or one of the main languages belong to the Germanic family. This includes Austria, Germany, Switzerland, Netherlands and Scandinavian countries, as well as England to some degree. The concepts of work, fiscal management, climate and history are different enough overall to the Mediterranean-Latin countries and most eastern European countries including the Balkan ones.
Therefore, it is time for Europe to get over it and for it to develop a bicameral perspective at the institutional level. Brussels could remain the overseer of Northern Europe with some joint institutions between the North and South. There would be Schengen north and south thereby establishing borders of a light but distinctive variety along France, Switzerland, Austria and Eastern Europe frontiers. This would help alleviate the anti-immigration pressures in the UK to walk away from Europe.
It is possible that under such an arrangement a northern ECB (European Central Bank) involving currencies of the north would be operable called a n-euro. This idea has got serious traction in top US foreign policy journals, one of which is headed by very top thinkers. Re http://www.the-american-interest.com/2011/08/30/euro-vs-neuro/
Conversely, a Southern European currency run out of the ECB or out of a Mediterranean capital like Rome would be called the s-euro. Rome could be the new southern Brussels ensuring that the s-euro was 20 percent or more cheaper to the euro. The other, Southern European union country cities like Athens to Madrid to Lisbon and possibly Paris would headquarter various institutions of this new union.
It is time for Europe to recognize and celebrate its differences than have some of its parts hammered into a Germanic mirror image. It might be possible for certain countries like France to have associate membership to the Northern Europe group for important consultative matters but would likely fit better into the s-euro group.
If these “two” Europes keep trying to be a forced marriage, it might lead to very unhealthy anti-German and anti-Brussels nationalism, that might be even worse than the current hostile levels.
Europe is likely not going to reform itself to deal properly with its non-Germanic members, possibly not even with respect to British needs. If it does not, it could find itself evermore dealing with both rising domestic nationalism mixed in and reinforced by upsurges to counter European integration forces.
To save Europe, it must become bicameral.The human brain nicely works this way between the two hemispheres are comolementary. but they are distinct and separate as the North and South are generally.
There should be no loss of face and certainly no need for bad words to understand that the Germans are fundamentally different to the Italians or Greeks.
Let them both be set freer to pursue their positive approches but sometimes distinct cultural, financial and life style needs. Bankers be dammed to turn all into hugely disciplined, work only oriented and money making machines of the largely Protestant north? Well something like that without getting too stereotyped about it all.