As you can imagine from the almost meaningless juxtaposition of two words, it comes from the European Union. What it means is that the unelected political class which runs Europe found it difficult to get along with this tricky democracy business and decided to enable a system whereby if some countries didn't vote for their policies, others could go ahead and enact them.
In this case it is having a military headquarters. Not content with NATO, the quintet of France, Germany, Italy, Spain and Poland have sent a letter to the amazing Baroness Ashton saying they are going to go ahead. Britain has of course said no and there can't really be a European military structure without Britain, but they have decided to spend the money anyway.
The reason is that their 'united' Europe has to have all the accoutrements of a nation state; an army, or at least the top brass bureaucracy of an army (apart from France none of these countries has anything like a significant military), is important.
Never mind the fact that Europe is breaking up, it's full steam ahead towards a disunited Europe!
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