@mitsuhiko
The article you linked illustrates the issue well: countries defending their narrow interests and their formal sovereignty at the cost of the interests of the block and of actual power on the world stage. This is simply short-sighted, no matter what the orientation to growth is. Harmonization and simplification would already achieve sustained growth, without needing "net deregulation", as in an overall loss on worker's rights, environmental protection, etc.
The issue is that the 27 won't agree on how to achieve these, even if they agree that they are important.
Regarding growth: Europe will not become libertarian (and it should not do so in my opinion).
I agree with you that the general attitude towards progress is overly conservative. I do think it is more justified than in the past, as we have achieved a lot in many respects, and have more at stake as a result. It may well be that a more powerful Europe has the effect of slowing growth globally, and that may not be a bad thing overall (I would expect any kind of decentralization of power away from the US will have that effect in the short to medium term).