How The European Union Works (2019)
How The European Union Works (2019)
How The European Union Works (2019)
Relate
ISSN 0790-4290
The UK voted to leave the EU in 2016 and was originally scheduled to leave on
29 March 2019. However, its departure has now been postponed until either a
withdrawal agreement is approved or until 31 October 2019.
As a result of treaties between the member states, the EU has the power to make
laws on a wide range of subjects. The member states must implement these laws,
which take various forms, including Regulations and Directives.
History of the EU
What is now known as the European Union evolved from the European Coal and
Steel Community (ECSC), the European Atomic Energy Community (Euratom) and
the European Economic Community (EEC). These communities were formed in the
aftermath of the Second World War, partly in an attempt to foster economic
co-operation and ensure long-term peace in mainland Europe.
INSIDE: Goals of the EU p2, The European Parliament p2, The European
Commission p3, The Council of the European Union p3, The European
Council p4, The Court of Justice of the European Union p4, The
European Court of Justice p5, Types of action before the CJEU p5,
The Court of Auditors p6, The EU budget p6, Forms of legislation p6,
Legislative procedure p6, General Data Protection Regulation p8,
Geo-blocking Regulation p8, Consumer Rights Directive p8, Single-Use
Plastics Directive p8
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The three communities had six founding members: • Promote scientific and technological progress
Further amendments to the underlying constitutional The leaders of the various parliamentary groups decide
structure of the EU were made by the Amsterdam Treaty with the president on the Parliament’s agenda and set the
(signed in 1997), the Nice Treaty (signed in 2001) and the timetable of work for the Parliament and its committees.
Lisbon Treaty (signed in 2007). The Parliament sits in Strasbourg, but there is a Secretariat
based in Luxembourg and certain sessions and committee
meetings take place in Brussels to facilitate contact with
Goals of the EU the Commission and Council.
The current goals of the EU are to:
• P romote peace, the values of the EU and the wellbeing of Powers of the Parliament
its citizens
• Offer freedom, security and justice without internal With each new treaty, the powers of the European
borders Parliament have increased. In general, most European laws
must now be approved by both the European Parliament
• Promote sustainable development based on balanced
and the Council of the European Union. However, there are
economic growth and price stability, a highly competitive
certain important areas, for example tax legislation, where
market economy with full employment and social
the Parliament may only give an opinion as to whether
progress, and environmental protection
a proposed piece of legislation can become law. The EU
• Combat social exclusion and discrimination legislative procedures are explained in more detail on page 6.
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Unlike most national parliaments, the European Parliament The Commission meets once a week to adopt proposals,
does not have the ability to initiate legislation. The finalise policy papers and make decisions. Decisions are
Parliament can only vote on and amend legislation taken by a simple majority vote. Once a decision is taken, it
proposed by the Commission, which has exclusive power becomes Commission policy and has the full support of all
to initiate legislation. However, the Parliament can request commissioners.
that the Commission draw up legislation in an area.
To assist the commissioners in the performance of their
The European Parliament also has a critical role in the duties, the Commission employs a staff of about 32,000
approval of the annual EU budget. If the Parliament rejects people. Staff members come from all the member states
the budget after negotiations with the Council of the and include language experts, lawyers, administrative
European Union, a new budget must be drafted. staff, and experts in particular fields such as agriculture or
industry.
The European Parliament is responsible for supervising the
other institutions of the EU, most notably the Commission.
After each European election, the European Council
Powers of the European Commission
proposes a president of the Commission. This nominee
must be approved by a majority of the Parliament. The The Commission has a number of important functions:
commissioners are then nominated and they too must
• The Commission initiates legislation. It makes draft
be approved by the Parliament. The Commission must
proposals for European laws, which are sent to the
submit reports to the Parliament on its activities and must
Council and European Parliament for amendment and
answer written or oral questions during Question Time. If
approval. It also develops the overall legislative plan for
two-thirds of the Parliament vote in favour of a motion of
any single year.
censure against the Commission, the entire Commission is
forced to resign. Other bodies, such as the Council of the European Union
and the European Parliament, can send requests to the
If a quarter of the MEPs so vote, a committee of inquiry Commission to draft legislation.
can be set up to look into alleged contraventions or
A piece of EU legislation can also confer power on the
maladministration of EU law. The consent of the Parliament
Commission to enact Regulations which implement the
is also necessary to allow a new member state to join the EU.
goals in that piece of legislation.
• The Commission acts as a guardian of the EU treaties.
The European Commission It ensures that EU legislation is applied by all member
states. It can institute proceedings against member
The Commission is the executive body of the European states or businesses that fail to comply with EU law.
Union and its staff are part of the EU civil service. The
• The Commission acts as an executive body: it manages
Commission is based in Brussels.
policies and drafts and implements the annual budget.
The Commission is composed of 28 commissioners, one of • The Commission represents the EU on the international
whom is the president. There is one commissioner for each stage. It negotiates trade and co-operation agreements
member state; each member state nominates a person to with non-EU countries. However, most agreements
act as a commissioner. However, that person is not officially negotiated by the Commission must be approved by
there to represent the interests of their own member state. both the Parliament and the Council of the European
As noted above, the European Parliament must approve Union.
the president of the Commission and then each of the
commissioners. Each individual commissioner is subjected
The Council of the European Union
to scrutiny by the relevant committee of the European
Parliament before the vote takes place. Together, the The Council of the European Union shares decision-making
commissioners are known as the College of Commissioners. power with the European Parliament, particularly in the
areas of law-making and budget approval. It is not to be
The president of the Commission gives each commissioner
confused with the European Council, which is discussed
responsibility for a particular area. However, the allocation
later. The Council of the European Union has a rotating
of portfolios is often the subject of much negotiation
presidency, meaning that a representative from a different
between the member states and the president. These
member state chairs most of the Council meetings for a six-
policy areas are often closely related to the departments
month period.
within the EU civil service (Directorates-General). Each
commissioner has a five-year term. The Council of the European Union consists of one
government minister from every member state. Different
groups of ministers meet depending on what topic is being
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discussed at the weekly meeting. For example, if the issue The European Council
to be discussed at the Council is agriculture, the minister for
agriculture from each member state will attend and sit on The members of the European Council are the heads of
the Council. state or heads of government of the EU member states, the
president of the European Council and the president of the
The Council generally meets in Brussels. However, meetings European Commission. The Taoiseach therefore represents
during April, June and October are held in Luxembourg. Ireland at these meetings. The EU’s high representative
The Council of the European Union has the following for foreign affairs and security policy also takes part when
essential functions: foreign affairs are discussed.
• The power to legislate. The Council shares this power The European Council defines the EU’s overall political
with the European Parliament. Generally, the Council direction and priorities. It is not one of the EU’s legislating
and the Parliament jointly adopt proposals for legislation institutions, so it does not negotiate or adopt EU laws.
that have come from the European Commission. As The European Council is responsible for defining strategic
noted, all initial versions of legislation must be drafted guidelines on freedom, security and justice.
by the Commission. The European Council has a number of important powers of
The Council and the Parliament can make amendments appointment. It elects its own president for a term of 2½
to the legislation before either approving or rejecting it. years, which can be renewed once. It nominates a candidate
The Council can also ask the Commission to undertake to become the president of the European Commission. This
studies, which can lead to draft legislation. nominee must be approved by the European Parliament. The
• Co-ordination of the economic policies of member European Council also exclusively decides on the president,
states. Every year, the Council drafts guidelines for the vice-president and executive members of the European
economic policies of member states. These are then Central Bank.
made into recommendations and the Council supervises
their implementation by member states.
• Development and co-ordination of the EU’s common European Council meetings
foreign and security policy. The Council defines and European Council meetings are essentially summits where
implements EU foreign and security policy on the basis EU leaders meet to decide on broad political priorities and
of guidelines set by the European Council. This policy major initiatives. The Council meets at least twice every six
area includes the EU’s development and humanitarian months, normally in Brussels. When pressing issues arise,
aid, defence and trade. meetings can be scheduled on an ad hoc basis. This has been
• The power to approve the budget of the EU. This power seen recently in the Brexit negotiations.
is shared with the Parliament.
Meetings are chaired by the European Council president.
The president of the European Parliament attends the start
How the Council of the European Union makes of each meeting to outline the European Parliament’s views.
decisions Other people, such as the president of the European Central
Bank, may be invited to attend meetings, depending on the
If the Council is considering a proposal that has been issues being discussed.
made by the Commission (which is the usual way that
The European Council mostly takes its decisions by
decisions arise), then it makes the decision using qualified
consensus. However, in certain specific cases outlined in the
majority voting (QMV). A qualified majority means that the
EU treaties, it decides by unanimity or by qualified majority.
following two conditions must be met:
If a vote is taken, neither the European Council president
• 55% of the member states must agree, which is at least nor the Commission president takes part.
16 member states currently.
• Those supporting the proposal must represent at least
65% of the EU population.
The Court of Justice of the European
Union
To prevent a decision being made, at least four member
states must form a blocking minority. This means that if The Court of Justice of the European Union (CJEU) is the
fewer than four member states oppose a decision, then judicial wing of the European Union. It is composed of the
the Council will judge that a qualified majority has been European Court of Justice (ECJ), the General Court and
reached. some specialised courts.
Certain sensitive topics, such as foreign policy and taxation, These various courts deal with disputes between parties
currently require a unanimous vote within the Council. which involve EU law. They interpret EU law to make sure
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it is applied in the same way in all EU countries, and settle Types of action before the CJEU
legal disputes between national governments and EU
institutions. In certain circumstances, individuals, companies The CJEU upholds EU treaties and ensures that European
or organisations can take action against an EU institution law is interpreted and applied in the same way across the
in these courts, if they feel the institution has somehow EU. It can take various forms of legal action. These include:
infringed their rights. The CJEU sits in Luxembourg. • Preliminary rulings. To avoid differences in the
interpretation of EU law by national courts, the
The European Court of Justice preliminary ruling procedure allows co-operation
between national courts and the ECJ. If a case comes
The European Court of Justice (ECJ) is the highest court before a national court that involves an interpretation
of the EU. It consists of 28 judges, with one judge coming of an EU law and there is a doubt as to how it should be
from each member state. It normally hears cases in panels interpreted, the national court will refer the question
of three, five or 15 judges (which is known as the Grand to the ECJ. The ECJ will decide how the law should be
Chamber), depending on the importance of the issue in the interpreted or applied. The national court must then
case or the particular issue of European law in dispute. The apply that decision to the case before it.
ECJ acts as a collegiate body, meaning that there is only one • Proceedings for failure to fulfil an obligation. The
ruling in each case. No dissents or separately concurring Commission or a member state may commence
judgments are allowed. proceedings at the ECJ to force a member state to
In addition to the 28 judges at the ECJ, there are 11 comply with EU law. If the CJEU decides that the
advocate generals who deliver reasoned opinions on cases member state in question is at fault, the member state
to assist the ECJ in making its decisions. Each case is must rectify the situation without delay.
assigned one advocate general, although an opinion from • Proceedings for annulment. This is where an applicant
the advocate general is not necessary in every case. seeks the annulment of a measure (in particular a
Regulation, Directive or Decision) adopted by an
Judges and advocate generals of the ECJ must have the
institution, body, office or agency of the EU. This type
qualifications to be appointed to the highest national
of action enables the court to review the legality of
courts in their member states or they may be jurisconsults
acts adopted by European institutions, bodies, offices or
(academic lawyers). Their independence must be beyond
organisations. The ECJ can annul the act concerned if it is
doubt. This means that once they are appointed, they may
judged to be contrary to EU law.
not hold any other office of an administrative or political
nature and they may not engage in any occupation, paid The ECJ has exclusive jurisdiction over actions brought
or unpaid. They are appointed by joint agreement of the by a member state against the European Parliament or
governments of the member states. They have a renewable against the Council of the European Union (apart from
term of six years. Council measures in respect of State aid, dumping and
implementing powers) or brought by one EU institution
against another. The General Court has initial jurisdiction
The General Court in all other actions of this type and particularly in actions
The General Court was set up as the Court of First Instance brought by individuals.
in 1989. It includes at least one judge per member state. Private individuals may only bring proceedings for
Currently, there are 46 judges. Later this year, its number annulment of an EU law if they can demonstrate that the
will increase and there will be two judges per member state. disputed law affects them directly and individually. To
Unlike the ECJ, the General Court does not have permanent bring proceedings for annulment, you should obtain legal
advocates general. However, that task may, in exceptional advice and representation. You do not need to go through
circumstances, be carried out by a judge. the national courts first in order to bring proceedings for
annulment in the ECJ. If you lose the case at the ECJ, you
Cases before the General Court are heard by panels of may be liable to pay the costs of both sides. If you succeed,
five or three judges or, in some cases, by a single judge. your costs will be paid by the EU and the law will be
The General Court may also sit as a Grand Chamber (of declared null and void throughout the EU.
15 judges) when this is justified by the legal complexity or
importance of the case.
The Court of Auditors
Matters which are initially reserved to the General Court
include cases relating to breach of competition law, The Court of Auditors audits the accounts and oversees the
breach of commercial policy or social policy, and disputes implementation of the budgets of EU institutions.
concerning EU staff regulations. Decisions made by the
General Court can be appealed to the ECJ on a point of law.
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The EU’s main sources of income are: Directives. A Directive is a form of order to member states
to implement national legislation to achieve a specific
• Contributions from all member states, including a result. It is up to the national governments to decide on the
percentage of VAT collected form and method of the legislation necessary to achieve
• Import duties on products entering the EU that result. This allows member states some flexibility in
• Fines imposed on businesses and member states for implementing Directives and makes it easier to do so in a
failure to comply with EU rules way which is satisfactory to each member state. Usually, a
Directive will specify a deadline for the implementation of
In addition to the expenses of running the EU, the EU
legislation.
budget is spent on a wide range of policy areas, including:
Decisions. A Decision is addressed to a limited and defined
• Agricultural grants to farmers under the Common
group of people, for example one member state or a
Agricultural Policy (CAP) – over 80% of the EU monies
corporation. Decisions are binding upon the group that they
received by Ireland in 2017 were agriculture related
address.
• Regional development funds to the less well-off member
states and regions in the form of cohesion and structural Recommendations and opinions. These are not binding;
funds they are simply recommendations. However, they may be
persuasive.
• Monies for the creation of growth and jobs within
member states
• Environmental measures Legislative procedure
• Cultural expenditure
• Border control Ordinary legislative procedure
A broader multi-annual financial framework spanning The majority of EU legislation is adopted using the ordinary
seven years is also agreed to allow for greater certainty in legislative procedure (previously known as the co-decision
planning for income expenditure. procedure). It operates as follows:
2. The Council of the European Union and the Parliament To facilitate agreement between the Council and the
independently discuss and debate the legislation. Parliament at the various stages, informal negotiations
Normally, the Parliament decides its position first and known as ‘trilogues’ often occur, involving representatives
submits any proposed amendments to the Council. of both institutions. The Commission acts as a mediator
3. If the Council agrees with the Parliament’s position and/ for this trilogue process. The meeting of the Conciliation
or amendments, the legislation is adopted. Committee between the second and third reading is often
referred to as a ‘formal trilogue’.
4. If the Council disagrees with the Parliament’s position, it
sends its own amendments back to the Parliament for a
second reading.
Consent procedure
5. The Parliament may then accept the Council’s
amendments, in which case the legislation is adopted, or The consent procedure is similar to the ordinary legislative
send its own further amendments back to the Council. procedure, except that the European Parliament cannot
6. If the Council accepts the Parliament’s amendments, it propose any changes to the legislation. It simply has the
will adopt the legislation. option of accepting or rejecting the version approved by the
Council of the European Union.
7. If the two institutions do not reach an agreement
after this second reading, a Conciliation Committee is Areas where the consent procedure can be used include:
convened. This has an equal number of representatives
• Discrimination law
from the Parliament and the Council. It attempts to
agree a joint text. • Approval of withdrawal agreements
8. This joint text is voted on by both the Council and
the Parliament. If the text agreed by the Conciliation
Consultation
Committee is acceptable to both institutions at the third
reading, the legislative act is adopted. Otherwise, it is In certain policy areas, the Council of the European
rejected. Union can adopt legislation based on a proposal by the
9. If a legislative proposal is rejected at any stage of the Commission after consulting the European Parliament. It
procedure, or the Parliament and Council cannot reach is not bound by any advice or amendments proposed by
a compromise, the proposal is not adopted and the the Parliament. Depending on the area, the proposal will
procedure ends. need to be either unanimously approved or approved in
accordance with the qualified majority procedure.
2 nd reading Publication
EP 2ND READING
Agreement reached in
Conciliation Committee
No agreement reached in
Conciliation Committee that European law is supreme. Nothing in the national laws
of a member state can override or take precedence over an
Third reading: Joint text not Third reading: Joint text
approved by Parliament
and/or Council
approved by Parliament
and Council
Act not adopted EU law.