The latter, that is, the Economic Union can be described, in the new political science jargon, as a State Nation or Nation of States where the ultimate political power still resides at the state level. In summary, in the Political Union there is one sovereign state, while in the Economic Union there are multiple sovereigns.
The Economic Union allows member states to define new and expanded economic borders while the political borders remain the same. We are faced with both a challenge and an opportunity to create a new state with the unique characteristics of both an Economic and Political Union.