Institutional affairs

The powers of the EU institutions flow from its founding treaties which have been freely negotiated and ratified by its members. In policy areas not covered by the treaties, EU countries are free to exercise sovereignty alone.

The most important treaties are the Treaty of Rome (1957) which created the then EEC, and the Maastricht Treaty (the Treaty on European Union) which took effect in 1993. Others are the Single European Act (1987), which launched the European single market, and the Treaties of Amsterdam (1999) and Nice (2003).

EU countries are currently ratifying the Lisbon Treaty, signed by their leaders in December 2007, which will make the enlarged Union more efficient and more democratic. This treaty replaces the draft constitution for the EU which was agreed in 2004, but not ratified by all member countries.

The institutional triangle

Three institutions are responsible for making policy and taking decisions. They are

• the Council of the European Union,
• the European Commission, and
• the European Parliament

Council of the European Union

This is the main decision-taking body and therefore the most powerful of the three. It is the voice of the member states, and meets several times a month at minister level. It has both a legislative function, which it shares with the European Parliament, and an executive function, which it shares with the European Commission. The Council meets in specific policy formations: external relations, economic and financial affairs, transport, energy, agriculture, etc. It is commonly called the Council of Ministers.

Most decisions are by majority vote, although sensitive issues in areas like taxation, asylum and immigration, or foreign and security policy require unanimity.

At its highest level, the Council meets as the European Council where members are represented by heads of state and government (presidents and/or prime ministers). These summits, held up to four times a year, set overall EU policy and resolve problems that emerge at lower levels.

European Commission

The Commission is independent of governments and represents and upholds the interests of the Union as a whole. It has two essential functions. One is to propose EU policies and legislation and the other is to ensure that the terms of the EU treaties and the laws adopted by the Council and the European Parliament are respected. It is sometimes called the ‘guardian of the treaties’.

A new Commission is appointed every five years so that its term is largely aligned with each five-year mandate of the European Parliament. The Commission members – one from each country – are vetted by the European Parliament before taking office.

European Parliament

Like parliaments throughout history, the European Parliament has had to fight for its right to represent the people. It was first directly elected by EU citizens in 1979. The present Parliament, elected for five years in June 2004, has 785 members from all 27 countries.

Parliament’s principal function is to adopt, in a process called ‘co-decision’ with the Council, the draft legislation submitted to them by the European Commission. The Parliament has the power to dismiss the European Commission through a vote of censure.

Upholding the Law

The job of the Court of Justice of the European Communities is to make sure that EU legislation is interpreted and applied in the same way by the member states, so that it applies equally to all.

The Court can also rule in legal disputes involving member states, EU institutions, businesses or individuals. The court, located in Luxembourg, is made up of one judge from each EU country.

Other institutions and bodies

In addition to the big four, the European Union has six other main bodies with specific tasks:

• The Court of Auditors, which checks that the EU budget, funded by the European taxpayer, is spent correctly;
• The European Central Bank, based in Frankfurt, which manages the euro and sets EU monetary policy;
• The European Economic and Social Committee and the Committee of the Regions are consultative bodies, speaking for civil society and local government in Brussels;
• The European Investment Bank in Luxembourg, which funds projects in the EU’s poorer regions and promotes small and medium-sized businesses.

Created by the Maastricht Treaty, the European Ombudsman investigates complaints against EU institutions from citizens, businesses and other bodies.