EU Origins: ECSC and Common Market

Origin of the EU: The European Coal and Steel Community (ECSC)

• Established by the Treaty of Paris in 1951, entering into force on July 23, 1952.
• Founded as a reaction to the devastation of World War II.
• Created a common market for coal and steel.
• Founding members included West Germany, Italy, Belgium, France, Netherlands, and Luxembourg.
• ECSC ceased to exist in 2002 after 50 years.

Three Important Milestones: A Common Market

• 1957 Treaties of Rome established the European Economic Community (EEC).
• Focused on eliminating obstacles to intra-community trade to merge national markets into a single market.

Three Important Milestones: EU Citizens

• 1993 Treaty of Maastricht established the European Community, expanding from economic goals to include environmental and consumer protection, and education.
• Established the concept of EU citizenship (now Art 20 TFEU): including the right to move and reside freely within the EU, and the right to vote in European Parliament and municipal elections in the host member state.

Three Important Milestones: The EU

• 2009 Treaty of Lisbon
• The European Community was replaced by the European Union (TEU, art 1(3)).
• The EU acquired the rights and obligations of the EC.
• The EU gained legal personality (TEU, art 47), enabling it to make international treaties and join international organizations.

Treaties in Force Today

• Treaty on European Union (TEU).
• Treaty on the Functioning of the European Union (TFEU).
• Treaty establishing the European Atomic Energy Community.
• Charter of Fundamental Rights of the European Union.

What the EU is

• An international/supranational organization with 27 member states.
• Original members since 1958: Belgium, France, Germany, Italy, Luxembourg, and Netherlands.
• 1973: Denmark, Ireland, United Kingdom (left on January 31, 2020).
• 1981: Greece.
• 1986: Portugal and Spain.
• 1995: Austria, Finland, and Sweden.
• 2004: Cyprus, Czechia, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia forming the 'eastward enlargement'.
• 2007: Bulgaria and Romania.
• 2013: Croatia.

What the EU Provides

• Promotes peace and security.
• Maintains a single market based on four freedoms of movement.
• Ensures high food and environmental standards.
• Provides consumer benefits.
• Upholds human rights.
• Pursues global ambitions.

What the EU is Not

• The EU is not a federal state.
• A federal state has a central government with competences binding on the entire country, and state governments with competences to legislate in the state.

EU vs. Federal States: Legislation

• EU legislation requires approval from national ministers (mostly using qualified majority vote) in the Council.
• In federal states, the central government approves legislation, usually without requiring approval from national governments.

EU vs. Federal States: Currency

• Federal states have a single currency for the federation (e.g. US$).
• The EU has a Euro Zone, but some states have opted out or cannot yet join.

EU vs. Federal States: Tax

• Federal states can raise taxes.
• The EU does not have general tax-raising powers; taxation is a prerogative of the member states.

EU vs. Federal States: Army

• Federal states have a national army.
• The EU does not have an army.

EU vs. Federal States: Executive Power

• Some federal countries have directly elected presidents with executive powers.
• The heads of the European Commission are appointed by EU national governments.

Limits of EU Power

• The EU has only the powers conferred to it by member states and must act within these limits.
• Principle of Conferral (TEU Art 4): EU institutions have only the powers granted to them by the member states through the TEU and TFEU.
• Principle of Limited Powers: The EU and its institutions must act within the limits of these powers (Art 5(1)&(2), and Article 13(2) TFEU).
• Principle of Proportionality (TEU art 5(4)): EU action should not exceed what is necessary to achieve the objectives of the treaties.

Transferred Powers

• Member states have transferred some powers to the EU.
• Areas of Exclusive Competence (EU only) (TFEU, Art 2(1)).
• Examples: customs union; establishing competition rules for the internal market; monetary policy for Eurozone members (TFEU, art 3(1)).
• Areas of Shared Competence (EU and Member states) (TFEU, art 2(2)).
• The principle of subsidiarity applies (Art 5(3) TFEU): the EU should only act as a last resort.
• Examples: internal market; agriculture and fisheries; environment; consumer protection (TFEU, Art 4).

Primacy of EU Law

• The EU constitutes a 'new legal order of international law' (CJEU, Van Gend en Loos, 1963).
• EU member states have limited their sovereign rights for this legal order.
• The EU can act for its member states in specific areas, especially in making laws.
• EU law is supreme over conflicting national law (primacy/precedence of EU law).
• Developed by CJEU case law.
• Now included in a declaration annexed to the Treaty of Lisbon.
• Prevents EU member states from overriding EU law.

Separation of Powers in Democratic Countries

• Executive government: Enforces the law.
• Judiciary: Makes judgments on law.
• Parliament: Makes and changes the law.
• Central Bank.

EU Institutions

• Executive: European Council (council of ministers of the member states).
• Civil servants: European Commission.
• Parliament: European Parliament.
• Judiciary: General Court; Court of Justice of the European Union (CJEU).
• European Central Bank: For Eurozone.

The Executive: The Council

• Council of the European Union (TEU, Art 15 & 16).
• Two Configurations of the Council: The European Council and The Council.

The European Council

• Consists of all Prime Ministers (or heads of state) of the member states + the President of the Commission.

The Council

• It comprises the ministers of the member states responsible for a particular matter.
• Agriculture and Fisheries Council: includes the ministers responsible for agricultural policy.
• ECOFIN Council: includes all ministers of finance.

European Council vs The Council

Aspect| European Council| The Council

• --|---|--- Membership| Heads of state/government + EU level presidents| Ministers responsible for specific policy areas Function| Strategic direction and political priorities| Policy-making, legislative, and budgetary powers Legislative Power| None| Yes (shared with the European Parliament) Meetings| Fixed Schedule (four times a year or more)| Varies, depending on policy areas Located | Brussels (Belgium)| Brussels (Belgium)

The European Council

• Political steering committee of the European Union (TEU, art 15(1)).
• Meets normally twice every six months (TEU, art 15(3)).
• Located in Brussels, Belgium.

The Council

• TEU art 16
• Legislative and budgetary functions with the European Parliament.
• Located in Brussels.
• Meets in 10 different configurations (TEU art 16(6)): e.g., the foreign affairs council; justice and home affairs council; agriculture and fisheries council; ECOFIN.
• Regular decision-making: Qualified Majority (TEU Art 16(3); unless the treaties provide otherwise).
• Qualified majority: at least 55% of the (27) council members, comprising at least fifteen of them and representing Member States comprising at least 65% of the population of the union.
• Safety net: TEU art 16(4): 4 members of the council constitute a ‘blocking minority’.
• Presidency of the council rotates every 6 months among the EU member states.

The European Commission

• 'Guardian of the treaties'.
• Administrative body with powers of enforcement (e.g., competition law and state aid).
• Collegiate body.
• One commissioner per member state.
• Based in Brussels.
• Divided into directorates-general (DG COMP for competition law; DG ECOFIN for financial issues).
• Represents the interests of the EU (TEU, art 17(1)).
• Promotes the general interest of the Union (TEU, art 17(1)).
• Union legislative acts may only be adopted on the basis of a Commission proposal (TEU, art 17(2)).
• Called the 'engine of EU law'.
• Ensures EU member states abide by the treaties and apply EU law (TEU, art 17(1)).
• Can bring proceedings against an EU member state before the European Court of Justice for violating treaty obligations (TFEU, art 258).

The European Parliament

• Art 14 TFEU and 223-234 TFEU.
• 705 elected members (+ president of commission).
• Elections every 5 years by proportional representation.
• Political groups reflect political affiliation, including MEPs from different member states.
• Meets in Brussels and Strasbourg, with offices in Luxembourg.

European Parliament: Functions

• Role has increased, acts jointly with the council.
• Co-legislator for ordinary legislative procedure (art 289(1)).
• Consultation or consent for special legislative procedure (TFEU art 289(2)).

Scrutiny

• Appointments and can censure or dismiss whole commission.

Consent

• New EU member states and associate agreements.
• Withdrawal agreements.

The Courts

• Acts of the EU are appealed first to the general court (first instance) and then to the court of justice of the European union.

The General Court and the CJEU Together

• Review the legality of acts of the EU institutions.
• Competition cases are appealed to the general court and then further to the CJEU.

The CJEU

• TEU, Art 19.
• Ensures the member states comply with their obligations under the treaties.
• Interprets EU law at the request of national courts and tribunals.
• Seat: Luxembourg.

Members

• Court of Justice: 1 judge from each EU country (art 19(2) TEU); assisted by advocates general (TEU, art 19(2)).
• General Court: 2 judges from each country.

Purpose

• TEU, art 19: 'the CJEU shall ensure that in the interpretation and application of the treaties the law is observed'.

Instruments of EU Law

• The pyramid (legislative acts of the EU).
• TFEU, art 288.

Regulations

• Binding in their entirety.
• Directly applicable in ALL member states.
• Example: the Brussels Ibis regulation.

Directives

• Binding on the EU member states, but only as to the result to be achieved.
• Member states have some discretion as to how to implement the aims of the directive.
• Example: consumer protection directive 2011.

EU Legislative Process

• In most cases:

1. Commission proposes legislation.
2. Council & Parliament (co-decision).

• Parliament and council must both approve.
• If not, conciliation process with negotiating committee to try for an agreement.