Luigi Einaudi and the Idea of European Federation

Luigi Einaudi’s thought on European federation developed over the course of his life, influenced by the major crises of the twentieth century. He identified the myth of absolute state sovereignty as the main obstacle to peace and prosperity in Europe. After World War I, Einaudi recognized the failure of the League of Nations to ensure lasting peace, arguing that only a true federation  – where European states would transfer part of their sovereignty to common institutions – could prevent future conflicts. His federalist vision was pragmatic and gradual, inspired by the British Commonwealth and Swiss models and attentive to both economic and political integration. Einaudi believed that economic cooperation alone was insufficient without a corresponding political union, and he advocated for supranational institutions with real powers over currency, taxation, and defense. He also stressed the importance of respecting national identities within a shared European framework. Although Einaudi’s influence was significant in the early stages of European integration, he remained critical of purely functionalist approaches, insisting that only genuine political federation could overcome nationalism and secure Europe’s future.