Brexit showed just the enormous depth of high quality glue keeping all remaining countries together.
So I don’t think the EU will be collapsing any time soon, certainly not for rational reasons.
The UK wanted to drop the tight integration and acceptance of common goals, but keep all the tax and trade benefits. But the logical hurdles turned out to be insurmountable. Want to sell fish tax-free? Well let us fish in your waters. Want to sell frictionless to our markets? Accept our standards. So what should the common ground be for digital services?
Initiatives like this, good or bad, represent the EU’s drive to combat big issues facing the world, and again need to be tackled for the EU to remain relevant; it can’t just stick to subsidising farming, that is so 1950s.
I spoke once to a senior economist (can’t remember the name sadly) who made a good point: EU is often compared to national governments, and looks sluggish by comparison. But the real comparisons would be to other enormous bureaucracies: US federal government, China, UN etc. And when you make this comparison, it is in fact quite favourable for the EU. Basically, scaling is hard, and the EU is not bad at it.
The Warsaw Pact, the Cold War, the Iron Curtain across Europe and the Berlin Wall, as well as the communist surveillance States that still-living Europeans lived within and remember well enough was not that long ago.