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We map the pattern and extent of the European integration of core state powers (coercive force, public finance and public administration) and analyse causes and consequences. We highlight two findings: First, in contrast to historical examples of federal state-building, where the nationalization of core state powers precipitated the institutional, territorial and political consolidation of the emerging state, the European integration of core state powers is associated with the institutional, territorial and political fragmentation of the European Union. Second, in contrast to European market integration, state élites and mass publics, not organized business interests, are the prime drivers of integration. [ABSTRACT FROM AUTHOR]