The "European project" -- the continent's gradual evolution toward greater integration -- took a giant step forward this month with the launch of the euro. The single currency is a bold initiative, but it is merely the latest manifestation of a time-tested European strategy: Economic integration has long been the horse before the cart of European politics. But the advent of the euro and the birth of the European Central Bank have exposed a critical shortcoming in Europe's march toward unity. Policies have become more unified, but the EU's political institutions have not become more democratic. Decision-making continues to be opaque, and key European institutions remain shielded from popular scrutiny. This democratic deficit, if not remedied, threatens the success of the entire European project.

In recent weeks, celebrations over the successful launch of the euro have obscured the debate that has raged over the ECB. But questions concerning the new bank's independence must be answered. The bank is modeled after the mighty German Bundesbank, whose commitment to monetary stability was unquestioned. The Maastricht Treaty that set up the ECB and the subsequent legislation that filled in the details gave the ECB two missions: keeping inflation under 2 percent and keeping fiscal deficits small. To accomplish those objectives, the bank's enabling legislation says that it "must not take or seek instructions" from national governments.

That sort of independence does not sit well with the French government, nor with factions in the German left that have claimed important Cabinet portfolios. While those politicians do not quarrel with independence per se, they want the bank to include other priorities in its decision making. Unemployment rates tend to top their concerns, but they also have concerns about the value of the euro.