It is crippled because nation states want to retain control, it is one of the main reasons. People act like 'EU politicians' should solve everything overnight, but the reality is that it is out of their purview in many cases. Only federalization would resolve this issue.
About thirty years ago a European family could survive on a single salary and get by decently. Now they can't. So, I'm not sure what are you talking about.
> It is crippled because nation states want to retain control, it is one of the main reasons.
IMO it's crippled by the amount of poor decisions making and complete inability to handle even small-scale crisis somewhat successfully.
> Only federalization would resolve this issue.
On this, I agree. But given the decision making the last 15-20 years, that option is dead on arrival.
That, if I knew my friend was going to be irresponsible with money but their parent was going to bail them out, why shouldn't I lend them money with interest? Is that irresponsible of me? Do I deserve to get all my money back, instead of suffering some of the losses as well? (In this highly simplicized example, I = German banks, my friend = the Greek society, their parents = the ECB. Not saying all of Greek society was irresponsible, but in aggregate, it was a risky "investment")
A lot of the Greek bailout could be summarized as the German government bailing out German banks with EU taxpayers' money...
Here's a long article about what happened when Germany got flooded with money in the 1870s: https://www.nakedcapitalism.com/2015/02/michael-pettis-syriz... . It's longer than your one line, maybe you'd rather hold on to your more succint (and maybe more intelligent) summary...