On December 1st 2005, Belgian Prime Minister Guy Verhofstadt proposed the creation of a ‘United States of Europe’: a core group of Eurozone countries surrounded by a confederation of states. A European social-economic policy, technology cooperation, a common justice and security policy, a common diplomacy and army will make the EU stronger and less patronizing, said Verhofstadt. In this article, we look back over the main political and economic developments in the EU in 2005. This year will probably go down in EU history as the year in which the constitutional treaty was rejected. Yet, as demonstrated, despite a feeling of total malaise, a number of knotty dossiers came to a conclusion and new initiatives were taken.