Generate text that refutes this claim: Existing contributive inequalities within the Union would be amplified by a formal federal system  There is a possibility that once a federation, Europe will adopt certain policies that might be harmful for a minority of the member states. In consequence, any economic downturn in those states could manifest itself on a larger scale in the United States of Europe as economies of the member states rely (more than ever) on each other.  Furthermore different states may not contribute equally. States, because inducements to cooperate or threats to punish may be low, fail to provide for the collective benefit, therefore essentially "passing the buck" to other states, and most frequently to the most economically powerful participants. Citizens of large states like France, Great Britain, and Germany frequently complain that smaller states are not paying their "fair share" of the costs of the European Union. Meanwhile, smaller states may complain that they are overlooked or even disregarded because of their economically weaker status. These issues will be exacerbated in a European federation.  Decentralization decreases economic progress. [1] European countries where regions have more powers and responsibilities in terms of taxation, legislation and education policies tend to do better economically than centralised ones. Centralism hammers development of countries at the cost of its citizens.  [1] EUObserver, ‘Centralised states bad for economy, study shows’
europe house believes federal europe
On the contrary a federal Europe will bring the countries a lot closer together. Matters of harmful policies will be a lot less than they are right now in the EU simply because separate states do exist now. However when there is just one state with all the nations in it – the harmful policies toward a certain state will be reduced to a minimum – after all the leaders will be managing one country and will be watching for the interests of all its people equally. Furthermore in a federal Europe the economic situation will even far better and faster than it is doing so now in the EU. As a matter of fact there are examples with the recently joined states, Bulgaria and Romania, which after 3 years still cannot catch up with the more advanced western states. In a federal Europe this particular problem will be sorted out, because everybody will be a part of one major and powerful country. Therefore in an economical aspect a federal Europe will manage a lot better than the European Union is right now.