European Union Factsheet (PDF)

# How the European Union Works ## Historical Development of European Integration ### The First Treaties - The Treaty establishing the European Coal and Steel Community (ECSC) or the Treaty of Paris was signed on 18 April 1951 and came into force on 23 July 1952. - Treaty laid the foundations of t...

# How the European Union Works ## Historical Development of European Integration ### The First Treaties - The Treaty establishing the European Coal and Steel Community (ECSC) or the Treaty of Paris was signed on 18 April 1951 and came into force on 23 July 1952. - Treaty laid the foundations of the Community by setting up an executive known as the 'High Authority' a Parliamentary Assembly a Council of Ministers a Court of Justice and a Consultative Committee. The ECSC Treaty expired on 23 July 2002 at the end of the 50-year validity period laid down in Article 97. - The Treaties establishing the European Economic Community (EEC) and the European Atomic Energy Community (EAEC) or the Treaties of Rome were signed on 25 March 1957 and came into force on 1 January 1958. - The founding countries were Belgium France Germany Italy Luxembourg and the Netherlands. #### Objectives - Founders of the ECSC were clear about their intentions for the Treaty, namely that it was merely the first step towards a 'European Federation'. - The common coal and steel market was an experiment that could gradually be extended to other economic spheres. - The aim of the European Economic Community was to establish a common market based on the four freedoms of movement goods persons capital and services. - The aim of Euratom was to coordinate the supply of fissile materials and the research programmes initiated or being prepared by Member States on the peaceful use of nuclear energy. #### Main Principles - The desire for a united Europe. - The strategic industries in particular the steel industry needed reorganising. - The appeal made by Robert Schuman on 9 May 1950 can be seen as the starting point for European integration. - 'Europe will not be made all at once, or according to a single plan. It will be built through concrete achievements which first create a de facto solidarity.' - Free movement of goods and free access to sources of production - Permanent monitoring of the market to avoid distortions which could lead to the introduction of production quotas - Compliance with the rules of competition and the principle of price transparency - Support for modernisation and conversion of the coal and steel sectors ## Developments up to the Single European Act - The main developments are related to the creation of Community own resources the reinforcement of the budgetary powers of Parliament the election of MEPs by direct universal suffrage and the setting-up of the European Monetary system (EMS). - The entry into force of the Single European Act in 1986 bolstered the notion of integration by creating a large internal market. ### Main Achievements in the First Stage of Integration - Article 8 of the Treaty provided for completion of a common market over a transitional period of 12 years - The first aim the customs union was completed more quickly than expected. - Creating a 'Green Europe' was another major project for European integration, the first regulations on the common agricultural policy (CAP) were adopted and the European Agricultural Guidance and Guarantee Fund was set up in 1962. ### First Treaty Amendments #### Improvements to the institutions - The Merger Treaty of 8 April 1965 merged the executive bodies. - The Treaty introduced the principle of a single budget. #### Own resources and budgetary powers - The Council Decision set up a system of Community own resources. - The Treaty of Luxembourg granted Parliament certain budgetary powers. - The Treaty of Brussels gave Parliament the right to reject the budget. ## The Maastricht and Amsterdam Treaties - The Maastricht Treaty altered the former European treaties and created a European Union based on three pillars: the European Communities the common foreign and security policy (CFSP) and cooperation in the field of justice and home affairs (JHI). - The Amsterdam Treaty made the adjustments needed to function more efficiently and democratically. ### The Maastricht Treaty #### The Union's Structures - Marked a new step in the process of creating an 'ever-closer union among the peoples of Europe.' - Had a single institutional structure. - The Treaty established an Economic and Social Committee a European Committee of the Regions a European System of Central Banks and a European Central Bank. #### The Union's Powers - The first pillar consisted of the European Communities and provided a framework enabling powers. - The second pillar was the common foreign and security policy. - The third pillar was cooperation in the fields of justice and home affairs. **The European Community (First Pillar)** - To make the single market work. - To promote economic activities. - To promote a high level of employment and of social protection and equality between men and women. **The Common Foreign and Security Policy (CFSP) (Second Pillar)** - To support the policy actively and unreservedly in a spirit of loyalty and mutual solidarity. - To safeguard the common values fundamental interests independence and integrity. - To strengthen the security of the Union in all ways. - To promote international cooperation. - To develop and consolidate democracy and the rule of law and respect for human rights and fundamental freedoms. **Cooperation in the Fields of Justice and Home Affairs (Third Pillar)** - To develop common action in these areas by intergovernmental methods. - To provide citizens with a high level of safety. - To combat terrorism serious crime drug trafficking and international fraud. - To control illegal immigration and implement asylum policy. ### The Amsterdam Treaty #### Increased Powers for the Union **European Community** - To promote balanced and sustainable development and a high level of employment. - To coordinate Member States policies. - To extend the Community method to certain areas. **European Union** - To strengthen cooperation in the areas of police and judicial cooperation. - To create a new legal instrument. **A Stronger Position for Parliament** - Legislative power under codecision. - Voting to approve the Commission. - Election of Members of the European Parliament. #### Closer Cooperation - Closer cooperation between themselves. #### Simplification - Renders void or obsolete provisions. #### Institutional Reforms with a View to Enlargement - The maximum number of Members of the European Parliament is 700. - The composition of the Commission would comprise one national of each Member State. - The Council to review the Treaties' provisions on the institutions. #### Other Matters - Provisions on access to documents. - Provisions on openness in the Council's legislative work. ## The Treaty of Nice and the Convention on the Future of Europe - European Union only partially prepared for the important enlargements to the east and south on 1 May 2004 and 1 January 2007. - The European Convention made an effort to produce a new legal basis for the Union in the form of the Treaty establishing a Constitution for Europe. - The Treaty was not ratified. ### The Treaty of Nice #### Objectives - EU to welcome new Member States. - To prepare the EU for its next major enlargement. #### Background - To address issues which became known as the 'Amsterdam leftovers'. - The Helsinki European council decided that an IGC should deal with the leftovers. #### Content - The IGC opened on 14 February 2000 and completed its work in Nice on 10 December 2000. - The IGC reached agreement on the institutional questions a new distribution of seats in the European Parliament more flexible arrangements for enhanced cooperation the monitoring of fundamental rights and values in the EU and a strengthening of the EU judicial system. **Weighting of Votes in the Council** - The main imperative being to change the relative weighting of the Member States. **The Commission** - The composition is one Commissioner per Member State. - The President of the Commission has power to allocate responsibilities. **The European Parliament** - The maximum number of MEPs is 732. #### Reform of the Judicial System - The Court of Justice of the European Union - May increase the number of Advocates-General. - May refer to the Court of First Instance types of matters other than those listed in Article 225 - The General Court - Increase the powers to include certain categories of preliminary ruling. #### Legislative Procedures - Qualified majority voting in the Council. - Co-decision was extended to a few minor areas. - Assent was required for matters covered by former Article 161. #### Enhanced Cooperation - The Amsterdam Treaty provided for enhanced cooperation. - Referral to the European Council ceased to be an option. #### Protection of Fundamental Rights - A paragraph was added to Article 7 of the Treaty on European Union to cover cases where a patent breach of fundamental rights has not actually occurred. #### Role of the European Parliament - Parliament was actively involved in preparations for the IGC in 2000. ## The Treaty of Lisbon - The objective is to provide a historical context for the emergence of this latest fundamental text. - The specific provisions are explained. ### Legal Basis - Treaty of Lisbon amending the Treaty on European Union and the Treaty establishing the European Community - Entry into force on 1 December 2009. ### History - Treaty of Lisbon started as a constitutional project at the end of 2001. - The European Convention drafted the Constitutional Treaty. - The European Council decided to have a two-year 'period of reflection'. - The Treaty was signed on 13 December 2007 by the European Council in Lisbon and has been ratified by all Member States. ### Content #### Objectives and Legal Principles - The Treaty establishing the European Community is renamed the 'Treaty on the Functioning of the European Union' (TFEU). - The term 'Community' is replaced by 'Union' throughout the text. - No additional exclusive competences are transferred to the Union. - It changes the way the Union exercises its existing powers. - It creates a new institutional set-up. - It modifies the decision-making process. - It increases efficiency and transparency. - It increases parliamentary scrutiny and democratic accountability. #### Enhanced Democracy and Better Protection of Fundamental Rights - It expresses the three fundamental principles of democratic equality representative democracy and participatory democracy. - It takes the new form of a citizens' initiative. #### A New Institutional Set-Up - The European Parliament - Composed of representatives of the Union's citizens. - The ordinary legislative procedure which replaces the former codecision procedure now applies to more than 40 new policy areas. - The assent procedure continues as 'consent', and the consultation procedure remains unchanged. - The European Council - The Treaty formally recognises the European Council as an EU institution. - An elected President is appointed for a renewable term of 30 months. - The Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy - Appointed by a qualified majority of the European Council with the agreement of the President of the Commission. - Assisted by the European External Action Service. - The Council - The principle of double majority voting remains. - The Commission - The President is responsible for the internal organisation of the college. - The jurisdiction of the Court is extended to all activities of the Union. #### More Efficient and Democratic Policymaking with New Policies and New Competencies - Passerelle clauses allow for changes from unanimous decision-making to qualified majority voting. - Enhanced cooperation among themselves for nine Member States. #### Role of the European Parliament - Parliament was consulted before an intergovernmental conference was called. - Parliament was involved in the intergovernmental conferences. ## The European Union's Legal System and Decision-Making Procedures ### Sources and Scope of European Union Law - European Union has legal personality and as such its own legal order separate from international law. - EU law has direct or indirect effect on the laws of its Member States. - EU law becomes part of the legal system of each Member State. - The legal order is usually divided into primary legislation secondary legislation and supplementary law. #### Sources and Hierarchy of Union Law - Treaties: Treaty on European Union (TEU), Treaty on the Functioning of the European Union (TFEU), and their protocols. - Charter of Fundamental Rights of the European Union. - The Treaty Establishing the European Atomic Energy Community. - International agreements. - General principltes of Union Law. - Secondary legislation. ### Supranational Decision-Making Procedures - The Member States of the European Union agreed to transfer some of their powers to the EU institutions. - EU institutions make supranational binding decisions. #### History - The Treaty of Rome gave the Commission powers of proposal and negotiation. - The Treaty gave Parliament a consultative power. - The Single European Act gave Parliament the power to authorise ratification of accession and association treaties. - The Treaty of Amsterdam strengthened Parliament's role in the EU. - The Treaty of Lisbon is a further qualitative step towards full equality with the Council. #### Legislative Procedures **Ordinary Legislative Procedure (Article 289 and 294 TFEU)** - The Lisbon Treaty added 40 further legal bases. - The procedure applies to 85 legal bases. - It does not apply to areas, for example fiscal policy concerning direct taxation or transnational aspects of family law. **Procedure** - Commission proposal. - First Reading in Parliament. - First Reading in the Council. - Second Reading in Parliament. - Second Reading in the Council. - Conciliation. - Conclusion of the procedure. - Consultation procedure. **Consent Procedure** - Applies in particular to the horizontal budgetary flexibility clause. - Parliament's consent is required for association agreements accession of the Union to the ECHR and agreements establishing a specific institutional framework entailing major budgetary implications. **Procedure** - Parliament considers a draft act forwarded by the Council. - Parliament decides whether to approve the draft by an absolute majority of the votes cast. - The Treaty does not give Parliament any formal role in the preceding stages of the procedure. #### Appointment Procedures - Parliament elects the President of the Commission. - The European Council appoints the High Representative for Foreign Affairs and Security Policy. - The Council adopts the list of Members of the Commission. - The Council adopts the members of the Court of Auditors. - Parliament elects the European Ombudsman. ## Intergovernmental Decision-Making Procedures - The decision-making procedure is different from that prevailing in the ordinary legislative procedure. #### Legal Basis - Articles 20; 21 to 46; 48 and 49 of the Treaty on European Union (TEU); Articles 2(4); 31; 64(3); 81; 89; 103(1); 113; 115; 118; 127; 153; 191(3); 192; 194(2); 215; 218; 220; 221; 312; 329 and 333 of the Treaty on the Functioning of the European Union (TFEU). #### Description **Procedure for Amendment of the Treaties(Article 48 of the TEU)** - Proposal: any Member State, Parliament or the Commission. - Commission's role: consultation and participation. - Parliament's role: consultation. - Decision: common accord of the governments on amendments. **Procedure for the Activation of Passerelle Clauses** - The European Council: activates and decides unanimously **Accession Procedure (Article 49 of the TEU)** - Applications: from any European state which complies with the Union's principles. - Commission's role: consultation. - Parliament's role: consent. - Decision: by The Council. **Withdrawal Procedure (Article 50 of the TEU)** - Request: The Member State concerned notifies the European Council of its intention. - Conclusion: takes the form of a withdrawal agreement. **Sanctions Procedure for a Serious and Persistent Breach of Union Principles by a Member State (Article 7 of the TEU)** - Proposal for a decision determining the existence of a serious and persistent breach: one third of the Member States, or the Commission. - Parliament's consent. - Decision determining the existence of a breach: adopted by the European Council. - Decision to suspend certain rights of the Member State concerned: adopted by The Council. **The Treaty of Nice Supplementary Procedure** - Reasoned proposal for a decision determining a clear risk of a serious breach of Union principles: on the initiative of the Commission, Parliament or one third of the Member States. **Enhanced Cooperation Procedure** **General Rules (Article 20 of the TEU; Article 329(1) of the TFEU)** - Proposal: exclusive right of the Commission. - Parliament's role: consent. - Decision: by the Council **Cooperation in the Field of the CFSP (Article 329(2) of the TFEU)** - Application to the Council by the Member States concerned. - Proposal forwarded to the High Representative of the Union for Foreign Affairs and Security Policy (HR), who gives an opinion. - Information of Parliament - The Council acts on the basis of unanimity. **Procedure for Decisions in Foreign Affairs** - The Treaty of Lisbon abolished the three-pillar structure of the previous treaties but kept foreign policy separate from other EU policies. - The objectives and provisions are better drafted and more coherent. ## The Budgetary Procedure - Parliament's role in the budgetary process has progressively expanded. - The Treaty of Lisbon gave Parliament an equal say with the Council over the entire EU budget. ### Legal Basis - Article 314 of the Treaty on the Functioning of the European Union (TFEU). - Article 106a of the Treaty establishing the European Atomic Energy Community. - Articles 39 to 55 of the Financial Regulation. - Interinstitutional Agreement (IIA). ### Objectives - To determine the overall amount and distribution of annual EU expenditure. - To exercise control over implementation of the budget. ### Description #### Background - Parliament and the Council form the budgetary authority. - The 1970 Treaty increased Parliament's budgetary powers. - The 1975 Treaty increased Parliament's budgetary powers to reject the budget in its entirety. #### The Stages of the Procedure - Stage one: submission of the draft budget by the Commission. - Stage two: adoption of the Council's position. - Stage three: Parliament's reading - Stage four: meeting of The Conciliation Committee and adoption of the budget. #### Role of the European Parliament - Powers conferred by Article 314 TFEU. - Parliament gained the right to have the last word on non-compulsory expenditure. - Parliament and the Council act on an equal footing. ## European Union Institutions and Bodies ### The European Parliament: Historical Background - Origins lie in the common assembly of the three supranational European communities that existed at the time. - The assembly subsequently acquired the name 'European Parliament'. - Members have been directly elected since 1979. - The Parliament has undergone profound changes. - It is now recognised as a political agenda-setter of the European Union. #### Legal Basis - The original Treaties. - Decision and Act *concerning the election of the representatives of the Assembly by direct universal suffrage.* - Articles 14(2) and 17(2) of the Treaty on European Union (TEU). - Article 314 TFEU. #### Three Communities, One Assembly - Following the establishment of the European Economic Community and the European Atomic Energy Community. - The ECSC Common Assembly expanded to cover all three communities. - The new assembly met for the first time in Strasbourg. #### From Appointed Assembly to Elected Parliament - Before the introduction of direct elections. - All MEPs had a dual mandate. - Determined that direct elections should take place in or after 1978. - Parliament adopted a new draft convention. - The act entered into force in July 1978. - The first elections took place on 7 and 10 June 1979. #### Enlargements - The number of MEPs increased by 198. - The number of seats rose from 434 to 518 with the arrival of 60 Spanish and 24 Portuguese MEPs. - The composition of Parliament was adapted to reflect the demographic change. - The number of MEPs rose from 518 to 567. - The number of MEPs increased to 626. - The maximum number of MEPs was increased to 732. #### Gradual Increase in Powers - The replacement of Member State contributions by the Community's own resources led to the first extension of Parliament's budgetary powers under the Treaty of Luxembourg. - The Single European Act enhanced Parliament's role in certain legislative areas. - The Treaty on European Union marked the beginning of Parliament's metamorphosis into the role of co-legislator. - The Treaty of Amsterdam extended the codecision procedure. - The Treaty of Nice increased and extended Parliament's powers. - The Treaty of Lisbon extended Parliament's powers even further.