I was always under the impression that Britannia is basically Briton that never got out of their 'absolute monarchy' and 'imperialism' phases, if you want to give them a tl;dr version to start off. One of the reasons why the EEU formed was probably that the individual countries in it realized that their choices were to consolidate or risk eventually becoming Area 42, I'm guessing. And because Sunrise thought things would be simpler if there were just three world powers to worry about in the story.
Of course, there are plenty of things in the history that make no sense (among other things, how Japan gets into a parliamentary system with a Prime Minister without America kicking its ass and making it do that in WW2) which can only be explained by the fact that it's a Sunrise show and Sunrise is practically defined by the fact that they'll pull the most retarded things out of their ass for the sake of things looking cool/fanservice/ease of writing.
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Of course, there are plenty of things in the history that make no sense (among other things, how Japan gets into a parliamentary system with a Prime Minister without America kicking its ass and making it do that in WW2) which can only be explained by the fact that it's a Sunrise show and Sunrise is practically defined by the fact that they'll pull the most retarded things out of their ass for the sake of things looking cool/fanservice/ease of writing.