This chapter explores whether we can (and should) think of the EU as a unitary system or as one that allows for internal differentiation and layering, both in terms of the horizontal relationship between the EU Member States and the one between the EU and non-EU states. The chapter highlights the legal methods of differentiation, such as enhanced cooperation and opt-in and outs, and analyses the limits and pathologies of differentiating EU obligations. It also looks at the different models of differentiation that are available, beginning with the process of joining and leaving the EU, before moving on to think about the interaction between the EU and the EEA, the United Kingdom and the role of Free Trade Agreements. As we will see, the question of which model of cooperation to choose, or of how differentiated the EU should be, once again poses fundamental trade-offs between sovereignty and unity that ultimately depend on how we understand the EU’s purpose.
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