Interesting scenario, but I'm curious why Germany hasn't reunified and there are so few members? I would've thought if the UK and Ireland are part of it, Denmark, Spain and Portugal would be too at least.
In this TL the federalization of Europe took place more quickly and explicitly than in reality before the end of the 1970s. Denmark, however, refused to explicitly join a federal state. The country became very centred around its core European megalopolis and the Liverpool-Milan urban axis and reluctant to expand because of the disruption of the institutional and economic balance that this would represent.
Austria was exceptionally able to join the federation at the end of the 1980s thanks to strong political mobilisation.
The end of the military dictatorships in the Mediterranean and democratisation was accompanied by the accession of these countries to a customs and cooperation union, but not to the federation itself, like the Nordic countries and Switzerland. There is thus a Western Europe that is evolving in different circles of integration.
The Cold War also ended, just less dramatically than in reality with the Soviet Union surviving its democratisation and transition to a market economy but becoming a moribund regional power.
German reunification remains a taboo subject since it is politically possible. The member countries of the federation were afraid of upsetting the delicate balance between the 'big four' (Germany, the UK, Italy and France) and consistently vetoed German reunification throughout the 1990s despite the frustration of the German people. Instead of a rapid reunification, a 50-year investment plan "Deutschland 2040" was introduced, with the elimination of inequalities between the two Germanies as a condition for a reunification within the federation.
In parallel with Deutschland 2040, the FRG has taken symbolic steps such as moving its capital to West Berlin (the Berlin wall was also destroyed, just in a more institutionalized way) and creating several pan-German cooperation organisations, but with the 2040 deadline approaching, inequalities still far from being bridged, and eastern German politics turning to OTL Visegrad-like conservative and illiberal rhetoric, German reunification remains a sensitive issue that is losing its appeal and is a source of political frustration for many.