The problem is that in the system you propose, smaller countries would have near zero incentive to participate because they'd always be overridden by larger countries.

I get the problem and I don't claim that my thoughts would be a ideal solution.

Currently, however, we face the opposite problem: The larger countries are increasingly being asked why they bear the lion’s share of the costs only to then have their sovereignty restricted by countries like Hungary (EU law takes precedence over national law).

Both problems—the lack of representation for both the small and the large countries—pose a threat to the alliance in their own ways.

I don’t know which of the two is more serious… but intuitively, I would say that a withdrawal by the large countries would hit the alliance much harder than one by the small ones, since a large portion of the budget (from which small states in particular benefit greatly) would then be lost.

In fact, it would likely desintegrate relatively quickly if the people that push for less independence of the states get their way.

I get your point but I guess this is where out views differ.

In my view, cooperation beats competition—always.

The problem with the unanimity rule is that it makes the EU as a whole extremely vulnerable to outside influence. Russia, China, the U.S.—none of these nations has an interest in a functioning EU. A divided continent at war with itself would be much better for these power centers, in line with the “divide and conquer” principle. Currently, it’s enough for these powerful blocs (relative to the individual EU states) to focus their resources on exerting influence in a single member state to paralyze the entire bloc. In the turbulent times ahead, THAT will be the end of the EU—not a further increase in cooperation among the states.

If further integration is not possible due to the individual states’ aspirations for sovereignty, we at least need a two-speed EU to secure the EU’s global position by further increasing the cost advantages of cooperation.

And to put it in utilitarian terms: In exchange for limiting their sovereignty, the small countries gain maximum benefits through cooperation with the bloc’s major economic powers. I see no other scenario in which a voluntary or involuntary reduction in sovereignty would lead to such benefits… which is why the EU is such an attractive and successful model.