How The European Union Works - European External Action .

THE EUROPEANUNIONEXPLAINEDYour guideto theEU institutionsHow theEuropeanUnion works

THE EUROPEAN UNIONEXPLAINEDThis publication is a part of a series that explainswhat the EU does in different policy areas,why the EU is involved and what the results are.You can see online which ones are availableand download them:europa.eu/pol/index en.htmHow the European Union worksEurope 2020 — Europe’s growth strategyThe Founding Fathers of the European UnionAgricultureBudgetClimate actionCompetitionConsumersCustomsCulture, audiovisual, sportDevelopment and cooperationDigital agendaEconomic and monetary union and the euroEducation, training, youthEmployment and social ign affairs and security policyFight against fraudFisheries and maritime affairsFood safetyHumanitarian aidInternal marketJustice, citizenship, fundamental rightsMigration and asylumPublic healthRegional policyResearch and innovationSecurity and home affairsTaxationTradeTransportThe European Union explained —How the European Union worksEuropean CommissionDirectorate-General for CommunicationPublications1049 BrusselsBELGIUMManuscript completed in July 2012Cover: Luis Pedrosa40 pp. — 21 29.7 cmISBN 978-92-79-25553-3doi:10.2775/87270Luxembourg: Publications Office of the European Union,2012 European Union, 2012Reproduction is authorised. For any use or reproductionof individual photos, permission must be sought directlyfrom the copyright holders.Printed in GermanyPrinted on white chlorine-free paper

THE EUROPEANUNION EXPLAINEDHow theEuropeanUnion worksYour guideto theEU institutions

2H O WT H EE U R O P E A NU N I O NW O R K SContentsIntroducing the European Union: how it works, who does what3The European Parliament: the voice of the people9The European Council: setting the strategy12The Council: the voice of the Member States14The European Commission: promoting the common interest19The national parliaments: enforcing subsidiarity23The Court of Justice: upholding EU law24The European Central Bank: ensuring price stability26The European Court of Auditors: helping to improve EU financial management29The European Economic and Social Committee: the voice of civil society31The Committee of the Regions: the voice of local government33The European Ombudsman: investigating your complaints34The European Data Protection Supervisor: protecting your privacy35The European Investment Bank: investing in the future36The EU agencies38

Y O U RG U I D ET OT H EE U3I N S T I T U T I O N SIntroducing the European UnionHow it works, who does whatThis publication is a guide on how the European Union(EU) works. ‘How the EU works’ means: how decisionsare taken at EU level and who takes those decisions.At the heart of this decision-making process are the EUinstitutions — such as the Parliament, the Council andthe European Commission — which you may haveheard of, and there are others. To show how the EUworks, this publication first explains how EU legislationis made. It then gives further insight into each of theEU institutions, as well as the agencies and bodiessupporting them.The European Union in briefAt the core of the EU are the Member States —the 27 countries that belong to the Union — and theircitizens. The unique feature of the EU is that, althoughthese are all sovereign, independent countries, theyhave pooled some of their ‘sovereignty’ in order to gainstrength and the benefits of size. Pooling sovereigntymeans, in practice, that the Member States delegatesome of their decision-making powers to the sharedinstitutions they have created, so that decisions onspecific matters of joint interest can be madedemocratically at European level. The EU thus sitsbetween the fully federal system found in the UnitedStates and the loose, intergovernmental cooperationsystem seen in the United Nations.The EU has achieved much since it was created in 1950.It has built a single market for goods and services thatspans 27 countries with 500 million citizens free tomove and settle where they wish. It created the singlecurrency — the euro — now a major world currency,and which makes the single market more efficient.It is also the largest supplier of development andhumanitarian aid programmes in the world. These arejust a few of the achievements so far. Looking ahead,the EU is working to get Europe out of the currenteconomic crisis. It is at the forefront of the fight againstclimate change and its consequences; as it plans tokeep growing, it helps neighbouring countries preparethemselves for EU membership; and it is building acommon foreign policy which will do much to extendEuropean values around the world. The success of theseambitions depends on the ability to take effective andtimely decisions and to implement them well.The EU treatiesThe European Union is based on the rule of law.This means that every action taken by the EU isfounded on treaties that have been approved voluntarilyand democratically by all EU countries. The treaties arenegotiated and agreed by all the EU Member States andthen ratified by their parliaments or by referendum.The treaties lay down the objectives of the EuropeanUnion, the rules for EU institutions, how decisions aremade and the relationship between the EU and itsMember States. They have been amended each timenew Member States have joined. From time to time,they have also been amended to reform the EuropeanUnion’s institutions and to give it new areas ofresponsibility. ImageGlobeWhat this publication is aboutOn 9 May 1950, French Foreign Minister Robert Schuman firstpublicly proposed the ideas that led to the European Union.So 9 May is celebrated as the EU’s birthday.

4H O WThe last amending treaty — the Lisbon Treaty — wassigned in Lisbon on 13 December 2007, and came intoforce on 1 December 2009. Earlier treaties are nowincorporated into the current consolidated version,which comprises the Treaty on European Union and theTreaty on the Functioning of the European Union.T H EE U R O P E A NU N I O NW O R K Sdate. It is not an EU treaty, but an intergovernmentaltreaty and the intention is to bring it into EUlaw eventually.The treaty is often referred to as the ‘fiscal compact’and will enter into force on 1 January 2013 if12 members of the euro area have ratified it by this ImageGlobeThe Treaty on Stability, Coordination and Governancein the Economic and Monetary Union is anintergovernmental treaty which was signed by all EUMember States except the Czech Republic and theUnited Kingdom in March 2012. It is designed to fosterbudgetary discipline, strengthen the coordination ofeconomic policies and to improve the governance of theeuro area. At present 17 EU countries use the euro astheir currency.The work of the EU is based on the treaties agreed by all themember countries — the latest main update was signed inLisbon in 2007.A history of the EU treatiesWhen French Foreign Minister Robert Schuman proposed integrating western Europe’s coal and steelindustries in 1950, his ideas were set out in the Treaty of Paris the following year, and the precursorto the EU — the European Coal and Steel Community — was born. Since then, the EU has regularlyupdated and added to the treaties to ensure effective policy and decision-making.XXXXXXXThe Treaty of Paris, establishing the European Coal and Steel Community, was signed in Paris on18 April 1951 and entered into force in 1952. It expired in 2002.The Treaties of Rome, establishing the European Economic Community (EEC) and the EuropeanAtomic Energy Community (Euratom), were signed in Rome on 25 March 1957 and came into forcein 1958.The Single European Act (SEA) was signed in February 1986 and came into force in 1987.It amended the EEC Treaty and paved the way for completing the single market.The Treaty on European Union (EU) — the Maastricht Treaty — was signed in Maastricht on7 February 1992 and came into force in 1993. It established the European Union, gave theParliament more say in decision-making and added new policy areas of cooperation.The Treaty of Amsterdam was signed on 2 October 1997 and came into force in 1999.It amended previous treaties.The Treaty of Nice was signed on 26 February 2001 and entered into force in 2003. It streamlinedthe EU institutional system so that it could continue to work effectively after the new wave ofMember States joined in 2004.The Treaty of Lisbon was signed on 13 December 2007 and came into force in 2009. It simplifiedworking methods and voting rules, created a President of the European Council and introducednew structures with a view to making the EU a stronger actor on the global stage.

Y O U RG U I D ET OT H EE U5I N S T I T U T I O N SWho takes the decisions?XA directive is a law that binds the Member States,or a group of Member States, to achieve a particularobjective. Usually, directives must be transposed intonational law to become effective. Significantly,a directive specifies the result to be achieved:it is up to the Member States individually to decidehow this is done.XA decision can be addressed to Member States,groups of people, or even individuals. It is binding inits entirety. Decisions are used, for example, to ruleon proposed mergers between companies.XRecommendations and opinions have nobinding force.Decision-making at EU level involves various Europeaninstitutions, in particular:Xthe European Parliament, which represents theEU’s citizens and is directly elected by them;Xthe European Council, which consists of the Headsof State or Government of the EU Member States;Xthe Council, which represents the governments ofthe EU Member States;Xthe European Commission, which represents theinterests of the EU as a whole.The European Council defines the general politicaldirection and priorities of the EU but it does not exerciselegislative functions. Generally, it is the EuropeanCommission that proposes new laws and it is theEuropean Parliament and Council that adopt them.The Member States and the Commission thenimplement them.What types of legislation are there?There are several types of legal acts which are appliedin different ways:XA regulation is a law that is applicable and bindingin all Member States directly. It does not need to bepassed into national law by the Member Statesalthough national laws may need to be changed toavoid conflicting with the regulation.How is legislation passed?Every European law is based on a specific treaty article,referred to as the ‘legal basis’ of the legislation.This determines which legislative procedure must befollowed. The treaty sets out the decision-makingprocess, including Commission proposals, successivereadings by the Council and Parliament, and theopinions of the advisory bodies. It also lays down whenunanimity is required, and when a qualified majority issufficient for the Council to adopt legislation.The great majority of EU legislation is adopted usingthe Ordinary Legislative Procedure. In thisprocedure, the Parliament and the Council sharelegislative power. Heide Benser/CorbisThe freedom for all citizens totravel, live and work in all the27 EU countries is one of themain achievements of theEuropean Union.