EU authority fraying in reaction to Brexit vote

But they could further undermine the legitimacy of the EU's common institutions in the eyes of citizens.

France, facing a presidential election next year, has threatened to stop obeying EU rules on workers posted from one member state to another, which it says undercuts the jobs of native employees. President Francois Hollande has also demanded a rewriting of EU merger control rules and restrictions on state aid to industry to enable the creation of "European champions".

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Spooked by a surge of support for anti-EU nationalist Marine Le Pen, conservative candidate Alain Juppe called on Monday for a new balance of power between Brussels and member states and a halt to further EU enlargement, ending Turkey's membership bid. He called last week for a referendum on a "new Europe".

Italy is demanding a loosening of recently adopted EU regulations that make shareholders, bondholders and depositors liable for the losses of failed banks before taxpayers.

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Dutch and German ministers have attacked a Commission decision that the European Parliament can approve a trade pact with Canada without referring it to national parliaments. The Dutch parliament was assured it would have a chance to weigh in on the treaty.

But perhaps most worryingly for the EU, senior ministers in Germany, the bloc's reluctant hegemon, are advocating shrinking the executive Commission, trimming its powers, and bypassing common European institutions to take more decisions by intergovernmental agreement.