I think it was inevitable that most of the continent would become a single state but I think it's going to cause problems in the long run.
The Commonwealth had enough problems with the US, China and the Sovereign Union without having a superpower on its doorstep.
Seeing as the UK is now potentially vulnerable that's one step closer to First Among Equals becoming a dead letter (having a Superpower less than 50 miles from your shores doesn't exactly inspire confidence).
What really worries me is the expansionism of the preceding European Union, after the Gorbachev reforms which established the Sovereign Union, the EU started gobbling up the former Warsaw pact nations like nobody's business. Now that Putin's Head of State I can see problems for Yugoslavia, to be fair they were always walking a tightrope with their plague on both your houses neutrality after the war, but now that they border with 2 superpower nations ...