The European Union is standing at the cross-roads concerning its future development and choosing of a proper form and structure for its effective operation while facing the actual challenges of the changing and the globalised world. Although the fact, that the EU is still remaining a specific organisation of international law, however after the entering of the Lisbon Treaty in force it gets to „the gates of federation and only small step remains for the transformation of this supranational organisation to the state entity" (Udo di Fabio).Today, 6 years after the Lisbon Treaty the concept of supranational organisation seems to be even more exhausted as it cannot provide the necessary range of integration and effective mechanism for withstanding the pressure of the large and complicated challenges of 21 century. The "Pandora’s box“ of further constitutional change is already open and the bigger risk lies in falling to take the action (Andrew Duff).The project will focus on the issues of the eventuality of future reform of the Union and the revision of Foundation Treaties in the framework of the constitutional development, the transition of the EU from supranational organisation to the state entity, and the related issues.Especially the project will concentrate on the analysis of 5 main working topics of the research, teaching and think-tank activities, which are connected closely with the envisaged process of the constitutionalisation and federalisation of the European Union including the new division of powers and competencies, the reform of unions institutions and their transformation in the state organs, creation of political and fiscal union, etc.). Project will comprise research -2 monographs in English published in Cambridge Scholars Publishing , 8 articles in peer-reviewed Journals, edition of the Journal, think-tank activities -3 conferences, 1 workshop, 5 round tables and 6 lectures of invited speakers, teaching of 7 subjects and commentaries in media.