Earlier quoted context omitted.
I absolutely see the advantages of having common standards, tariff agreements etc. to make trade across borders easier (i.e. something akin to the European Economic Area). I'm however also a proponent of federalism, because I believe that for a democracy to truly work it is necessary that the people still feel responsible for their votes and their decisions. This is something which I'm missing in centralised and unit…
But the EU does have a directly elected parliament? So where's the lack of democracy in the EU?
I'm aware that not all problems can be solved on a regional level, but those that can, should. This is especially true on a cultural more diverse landscape such as Europe compared to e.g. the US.
Regarding your second question, lack of democracy: one thing that comes to mind is the lack of binding referendums and initiatives, as it happens e.g. in Switzerland on a regular basis.