UN Reforms

Ideas for a New Millenium
I feel utterly confused about how the United Nations is being reformed. One of the clever ideas seems to be the expansion of the Security Council and I have two questions about it:
1) The European Union is in the process of becoming one country. It already has a European Parliament and the European Constitution is in the process of being formed. Shouldn't there be one permanent European representative in the Security Council rather than three, let alone the twentyfive term members? One would have expected Britain and France to withdraw in favor of EU, but instead Germany has also started in the race for the SC permanent seat.
2) How can a country like India that is in default of implementing a UN Security Council resolution be nominated for a permanent seat. I would recommend that the United Nations would become really effective if the membership of countries in such default is temporarily suspended.
Any answers?