A guide to the structure and operation of the European Union
Structure of the EU Institutions
The European Union functions through four principal interlinking institutions that have the following functions:
The European Commission
This is a 'super civil service' that lies at the heart of the union. It acts as a guardian of the treaty, formally originates all legislative measures and is responsible for the implementation of all decisions agreed by the Council of Ministers. It has a number of direct decision-making powers in such spheres as the coal and steel industries, agriculture and the environment. At the head of the Commission is a committee of 20 nominated commissioners who are appointed for a five-year renewable term of office. They are answerable to a president and up to two vice-presidents.
The European Parliament
Euro MPs are elected by the populations of their respective constituencies for a fixed five-year term. Their powers have been progressively expanded over the last twenty years. They approve the president and members designate of the European Commission and may force the Commission to resign through a vote of censure. Nevertheless, on a day-to-day basis, they remain largely a 'talking shop' with the authority to put forward amendments and comment on intended legislation.
The Council of Ministers
The central and ultimate decision-making body in the union. There are, in fact, many 'Councils' consisting of ministers from member states with specific portfolios - such as agriculture, transport and social affairs. No directive can be issued, or amended, unless it is agreed by the Council.
The Council is serviced by a number of meetings/working groups operated by the Committee of Permanent Representatives in Brussels (Coreper). Their job is to ensure that the ground is prepared for Council decisions and that the appropriate 'fine tuning' of legislative documents is carried out after Council meetings.
The European Court of Justice (ECJ)
Not to be confused with the European Court of Human Rights in Strasbourg. The ECJ, based in Luxembourg, is the guardian of the directives and regulations adopted by the Council. Its job is to be the court of last resort and it tends to make its decisions based upon the perceived intentions of the legislators, rather than just the letter of the law. Only one judgement is given and no dissenting views are published. The court's decisions are final and take immediate effect, unless the ECJ has been called upon to advise a national court on points of legal interpretation. Advising the court are nine advocates general, who give preliminary rulings on each case. Their opinions are published in advance of important cases and the courts frequently rule in line with their advice.
In 1989 a lower court was added to the ECJ. The Court of First Instance hears all staff cases and a number of complex submissions under competition law.
Other Institutions
These include:
The European Central Bank: The principal institution maintaining price stability in the eurozone.
The European Investment Bank: Its purpose is to ensure that weak regions and sectors are given assistance in order to develop more in line with EU norms.
The Court of Auditors: This body audits the accounts of the European Union.
The European Ombudsman: This is an office established by the European Parliament to investigate complaints of maladministration.
There are also a number of additional institutions serving the main decision-making process. The following advisory bodies have a symbolic, rather than substantive, role in the overall decision-making process.
The Economic and Social Committee (ESC): This is composed of representatives from employers' associations, trade unions and consumers' groups.
The Committee of the Regions: This was established to ensure that locally elected representatives are consulted on EU policy and legislation.
The EU legislative machinery
A wide range of legislation in 39 policy areas is now adopted under a process called the 'co-decision procedure'. This involves a proposal from the Commission being subject to two readings before both the Council and European Parliament. If the parties disagree, a committee of ministers and parliamentarians is formed to hammer out a compromise. If they still cannot resolve their differences, the Council may nevertheless adopt their text unless parliament rejects it by an absolute majority.
There are also two further decision methods used in certain defined areas:
Currency questions concerning the euro are still dealt with through a 'co-operation procedure'. This follows the form of the 'co-decision' approach, but without the conciliation committee. The Council may adopt measures provided its view is unanimous.
The 'Consultation Procedure' was the original decision-making approach established by the Treaty of Rome in 1958. It involves a single reading in the Parliament and Council. To adopt any measure the Council of Ministers had to be unanimous. It has now been effectively removed under the Treaty of Amsterdam.
The decision-making processes
The European Parliament now has the power to ask the Commission to submit any proposal on which it considers the Community should act. This power was previously limited to the Council of Ministers.
The Parliament operates through a number of standing committees that reflect the principal policy areas governed by the Community. They carry out investigations, hear evidence from experts and issue their own reports. Each month the Parliament holds a plenary session that votes through all decisions submitted by the Committees. MEPs may also submit written questions that must be answered by the Commission (or Council).
Most decisions by the Council of Ministers are now made through a system of qualified majority voting (QMV). The significance of a Council member's vote is determined by the relative population of his/her member state. Thus, for example, a vote by a Belgian minister carries less weight than one by his German counterpart. This approach gives large countries the power to sway decisions, but the system is geared to ensure that no majority may be gained without the support of at least a proportion of smaller member states.
Decision-making is also institutionalised within the terms of the 'social dialogue'. Under this process the Commission seeks to gain agreement on new measures by submitting proposals to European employers and trade unions. If the partners agree to negotiate, they are given a defined period in which to reach a common decision. If they are successful, the wording of their agreement is incorporated into a subsequent directive. If they are not, the Commission is free to decide whether it wants to shelve proposals, or pursue them through the traditional decision-making channels.
The Nice Summit in December 2000 introduced a new type of instrument into the EU repertoire. The European Charter of Fundamental Rights was adopted by the heads of state, but currently lacks the status of either a treaty amendment or a directive. Even so, within two months of this decision, the Charter was being quoted by an advocate-general in support of his opinion to the European Court of Justice. Clearly the Charter is perceived to have some legal standing, but it remains unclear how closely it will influence decisions by governments and the domestic courts.
The key players and the balance of power
There no longer exists a facility by any member state to 'veto' a decision, although a single state may find itself in a critical position if votes are split down the middle. Clearly Germany, as the EU's largest state, is in a commanding position and any proposals that ignore German interests are likely to become bogged down in the decision-making machinery.
There is a tendency for certain countries to vote in line with each other. These follow the traditional groupings of Scandinavia (Sweden, Denmark and Finland), Benelux (Netherlands, Belgium and Luxembourg), and the Mediterranean states (Spain, France, Italy and Greece). Countries that have frequently thought of themselves as 'poor relations' often make a point of differing from their important neighbour (Ireland v UK, Portugal v Spain and Austria v Germany). The three 'eurosceptic' states that currently lie outside the eurozone (Sweden, Denmark and the UK) are gradually becoming more compliant and no longer expect that special terms will automatically apply to them. It remains uncertain how the ten new EU states will align politically. It seems likely, however, that they will support free market principles and side with the UK in the social sphere.
Timetable for EU decisions
Once a draft directive has been issued, it will normally take at least eighteen months for it to be finally adopted by the Council of Ministers. This period may be shortened for simple amendments to existing directives. If a directive is shelved at any point in its passage through the decision-making machinery, it will often be modified and resubmitted at intervals of 3-5 years until it is successful. Approximately one in six of all social/employment measures are effectively abandoned through lack of support.
Most EU directives are introduced with a two or three-year target date for incorporation into national legislation. However, the Council has the power to introduce regulations that do not need to be incorporated into domestic law in order to come into force. These may have immediate effect.
If a domestic law is not introduced within the required time frame, the Commission may take the offending state to the European Court of Justice to require them to make the necessary changes. Ironically, this may delay the implementation of a directive for a further two years. In the meantime, the directive will nevertheless apply in the public sector (emanations of the state) through the process of 'direct effect' interpreted by the European Court of Justice through the Frankovitch ruling. If the directive has been wrongly implemented, the state concerned may be liable to pay damages to parties affected by the error (the Factortame ruling).
Useful Links
Council of the European Union/Council of Ministers
The European Parliament
The European Commission
The European Court of Justice (ECJ)
The structure of the EU
The Economic and Social Committee (ESC)
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