eei.eng.ultima varianta a cartii.doc

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ACADEMY OF ECONOMIC STUDIES OF MOLDOVA

EUROPEAN ECONOMY AND STRATEGIES

CHI INĂU 2012Ș1


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CONTENTS1. Understnd!n" t#e E$r%&en Un!%n.......................................................................................'1.1 The development of the European Communities.....................................................................51.2 Treaty Agreements establishing the European Union..............................................................81.3 The Community legal system.................................................................................................11

1. The Community finan!es........................................................................................................11

2. T#e str$(t$re nd )$n(t!%ns %) E$r%&en Un!%n.................................................................1*2.1 European "arliament...............................................................................................................1#2.2 The Coun!il of the European Union......................................................................................182.3 The European Commission....................................................................................................2$2. Court of %usti!e......................................................................................................................222.5 &ther European Union 'nstitutions........................................................................................23 +. C$st%,s Un!%n !n t#e E$r%&en C%,,$n!t-......................................................................23.1 Con!ept of regional integration( integration theory and e!onomi! analysis..........................2)

3.2 Customs Union* e!onomi! and legal frame+or,--------...-------...3$3.3 'ntra!ommunity trade..........................................................................................................31 / Elimination of internal frontiers..........................................................................................32 / 0eterinary and plant health legislation................................................................................32 / Administrative !ooperation.................................................................................................333. Trade +ith nonmember !ountries...........................................................................................33 / The !ommon !ustoms tariff.................................................................................................3 / E!onomi! tariff matters.......................................................................................................35 / eneral !ustoms legislation.................................................................................................3

/ &rigins of goods...................................................................................................................3# / Customs pro!edures +ith e!onomi! impa!t.........................................................................3#

/. T#e S!n"e Mret...................................................................................................................+.1 The internal mar,et "rogramme. ingle European A!t..........................................................3).2 The removal of physi!al( te!hni!al and fis!al barriers...........................................................$.3 The impa!t and effe!ts of the ingle European 4ar,et........................................................3. Understanding the four freedoms* ree movement of goods( !apital( labor and

servi!es...................................................................................................................................

'. E(%n%,!( nd M%netr- Un!%n !n E$r%&en Un!%n...........................................................'15.1 The European 4onetary ystem and the birth of the E6!hange 7ate 4e!hanism.................51

5.2 aun!hing E4U* 4aastri!ht Treaty........................................................................................535.3 E!onomi! poli!y and !onvergen!e of national e!onomi! poli!ies under E4 and beyond...585. European 4onetary Union impa!ts.........................................................................................15.5 European 4onetary Union and European Union ta6 harmoni9ation......................................

*. C%,,%n &%!(!es %) t#e E$r%&en Un!%n..............................................................................*.1 :ori9ontal poli!ies...................................................................................................................8

/ 7egional ;evelopment "oli!y...............................................................................................8/ o!ial "oli!y..........................................................................................................................#3/ Ta6ation "oli!y......................................................................................................................#)/ Competition "oli!y................................................................................................................88

/ Environment "oli!y.............................................................................................................1$32


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.2 e!toral "oli!y.......................................................................................................................1$/ 'ndustrial..............................................................................................................................1$/ Enterprise "oli!y..................................................................................................................1$/ Energy "oli!y......................................................................................................................1$#/ Common Transport "oli!y...................................................................................................1$8/ Common Agri!ultural "oli!y...............................................................................................11$

3. E4tern E(%n%,!( Ret!%ns %) t#e E$r%&en Un!%n........................................................121#.1 Comer!ial "oli!y and the multilateral trading system ..................................121

/ Common rules for import....................................................................................................121/ Trade prote!tion...................................................................................................................122/ Common e6port arrangements.............................................................................................12/ ATT and =T&..................................................................................................................125/ e!torial !ommer!ial poli!y measures................................................................................12#

#.2 E6ternal relations and the EU?s hierar!hy of trading preferen!es.........................................128/ The European ree Trade Asso!iation and European E!onomi! Area...............................128/ European E!onomi! Area Agreement* @or+ay( ie!htenstein and '!eland.......................12)

/ Custom Union Agreement* Tur,ey( 4alta and Cyprus.......................................................12)/ European Asso!iation Agreement.......................................................................................13$/ Euro4editerranean Asso!iation Agreements.....................................................................13$/ AC" European Community "artnership Agreement........................................................13$/ The enerali9ed ystem of "referen!es..............................................................................131

#.3 EU e6ternal trading relations* %apan and the U----------------...131#. The emergen!e of regional trade blo!s and the global Triad-----------.-133

. T#e Trns!t!%n E(%n%,!es5 Centr nd Estern E$r%&e.................................................1+38.1 The Central and East Europeans............................................................................................13#8.2 The nature of transition..........................................................................................................13)

8.3 Trade reorientation and entry into international e!onomi! !ommunity...............................158. Transition* progress and !hallenges.......................................................................................1#

. E$r%&en Un!%n Enr"e,ent..............................................................................................1'1).1 Central and Eastern European !ountriesdevelopment and integration +ith European Unio.151).2 The European Union prea!!ession strategy.........................................................................151).3 European Union enlargement !osts and benefits................................................................153). The finan!ial !onseBuen!es of enlargement..........................................................................15

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1. Understnd!n" t#e E$r%&en Un!%n

1.1 T#e de6e%&,ent %) t#e E$r%&en C%,,$n!t-

1.2 Tret!es est7!s#!n" t#e E$r%&en Un!%n1.+ T#e C%,,$n!t- e" s-ste,1./ T#e C%,,$n!t- )!nn(es

1.1 T#e de6e%&,ent %) t#e E$r%&en C%,,$n!t-

The history of modern European integration +as laun!hed in the late 1)$s in the +a,e of the e!ond=orld =ar. i6 years of !onfli!t had left a demand for politi! and e!onomi! re!onstru!tion as a devastated=estern Europe sought +ays to rebuild its e!onomy and to prevent future +ars. 4u!h of Europe lay in ruins(!ommuni!ations +ere bro,en( food and fuel +ere in short supply and industry +as geared to the needs of +ar.The !ontinent also fa!ed a future bet+een the superpo+ers( a developing Cold =arD !reating a dividing line

bet+een Europe?s +arravaged nations. 't too, the !omplete !ollapse of Europe and its politi!al e!onomi!de!line to !reate the !onditions for and give a ne+ impetus to the idea of a ne+ European order. The method of !onstru!tion !hosen( namely t#e 6%$ntr- !nte"rt!%n %) d!))erent nt!%ns ( had never before been tested inhuman history. 't involves ( by means of instruments voluntarily adapted by all( the gradual!reation of imper!eptible( but innumerable( lin,s bet+een the nations ta,ing part in the e6periment.

'n overall terms( moves to+ards unifi!ation in Europe sin!e the e!ond =orld +ar have !reated a!onfusing mi6ture of numerous and !omple6 organi9ations that are diffi!ult to ,eep tra!, off. or e6ample( theCentral and Eastern European !ountries and the oviet Union


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The future !ommon to the se!ond group of European organi9ations is that they are stru!tured to enableas many !ountries as possible to parti!ipate. At the same time( there +as an a+areness that these organi9ations+ould not go beyond !ustomary international !ooperation.

These organi9ations in!lude the C%$n(! %) E$r%&e9 ;#!(# ;s )%$nded s &%!t!( !nst!t$t!%n %n 'M- 1/. 'ts tatute does not ma,e any referen!e to moves to+ards a federation or union( nor does it providefor the transfer or merging of sovereign rights. ;e!isions on all important Buestions reBuire unanimity( +hi!hmeans that every !ountry has a po+er of veto( the same setHup is to be found in the Un!ted Nt!%ns 8UN:

Se($r!t- C%$n(!. The Coun!il of Europe is therefore designed only +ith international !ooperation in mind. @umerous !onventions have been !on!luded by the Coun!il in the fields of e!onomi!s( !ulture( so!ial poli!y andla+. The most important and best ,no+n of these is the Convention for the "rote!tion of :uman 7ights andundamental reedoms of @ovember 1)5$. The Convention not only enabled a minimum standard for the safeguarding of human rights to be laid do+n for the member !ountries( it also established a system of legal

prote!tion +hi!h enables the bodies established in trasbourg under the Convention under the Convention to !ondemn violations of human rights in the member !ountries.

This group also in!ludes the Or"n!


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tates( in +hi!h the !onditions +ould be fulfilled for rapid and regular e!onomi! e6pansion through e!onomiesof s!ale( better division of labor and the improved use of ne+ produ!tion te!hniBues. Even beyond e!onomi!integration he envisaged politi!al integration( by means of the European !ountries( through the !reation in stagesof a European ederationD. Fut that +as to be a!hieved gradually through !on!rete a!hievements or( to use the

building image( by means of bri!, upon bri!, to ma,e up the !ommunity edifi!e.Although the appeal from the ren!h 4inister for oreign Affairs +as addressed to all European

!ountries( only five ermany( 'taly( Felgium( the @etherlands and u6emburg gave a favorable reply.

Therefore( only si6 tates signed the treaty establishing the European Coal and Steel Community

in"aris on 18 April 1)51.The Europe of si6 began its !onstru!tion on 25 %uly 1)52( the date of entry into for!e of the ECC

Treaty. The United Gingdom( on the other hand( +anted a European free trade area( to be set up( +hi!h did notinvolve and +aiving of national sovereignty. Customs duties +ould( of !ourse( be abolished bet+een member !ountries( but the latter +ould remain autonomous +ith regard to !ommer!ial poli!y visKvis third !ountries.;enmar,( @or+ay( '!eland( Austria( "ortugal and +it9erland supported that argument.

&n 2 &!tober 1)5$ the ren!h 4inister of ;efense 7ene "leven( made a de!laration to the @ationalAssembly similar to the by 7. !human. Against a ba!,!loth of the Gorean =ar and +orsening tension bet+eenEast and =est( he proposed( as a solution to the problem of erman rearmament( the !reation of a Europeanarmy answerable to the politi!al institutions of the united Europe. urprising proposal +as immediately a!!epted

by the overnments of the i6 and led to the signing in "aris of the Treaty establishing the European DefenseCommunity. That underta,ing +as some+hat at varian!e +ith 7. !humanJs idea of progressing little by little.

As defense( li,e foreign poli!y( +as logi!ally amongst the last aspe!ts of the !onstru!tion of Europe.=hat +ould have be!ome of that Community if the ren!h @ational Assembly had not refused on 31August 1)5( to ratify the Treaty establishing it on the grounds that it regarded the abandonment of a nationalarmy as a serious infringement of ren!h sovereigntyL "robably( that Community along +ith the European

Political Community( the draft of +hi!h +as adopted on 1$ 4ar!h 1)53 by the ad ho! Assembly set up by theECC 4ember tates( +ould have proved to be premature as long as the de fa!to solidarity +hi!h 7obert!human and his adviser %ean 4onnet !onsidered ne!essary for the advent of European politi!al union +asmissing.

&n the other hand( the fun!tioning of the !ommon mar,et in !oal and steel sho+ed that e!onomi!integration +as possible and +orth+hile and that it should e6tend to all produ!ts. Thus( the 4inisters for oreignAffairs of the i6( meeting in 4essina from 1 to 3 %une 1)55( dis!ussed the possibility of !reating a !ommonmar,et embra!ing all produ!ts and a separate Community for nu!lear energy. They instru!ted a !ommittee of e6perts( !haired by the Felgian 4inister for oreign Affairs( "aul:enri paa,( to prepare a report on the matter.

The !ommittee presented its report on 21 April 1)5 and its !on!lusions +ere approved by the'ntergovernmental Conferen!e in 0eni!e on 2) 4ay 1)5. The 4inisters for oreign Affairs then de!ided toinitiate negotiations bet+een the si6 !ountries +ith a vie+ of !reating a European Energy Community anda European Atomi! Energy Community . &nly ten to sign the Treaties establishing the t+o ne+!ommunities.

Fritish attempts at !reating a vast European free trade area bet+een the European E!onomi!Community and the other 4ember tates of the &EC; failed during the autumn of 1)58 o+ing to intra!tabledifferen!es of opinion bet+een ran!e and the United Gingdom. 'n 1)5) it has been !reated ?E$r%&en FreeTrde Ass%(!t!%n@ 8EFTA>( to +hi!h the United Gingdom( @or+ay( +eden( ;enmar,( Austria( "ortugal('!eland and +it9erland a!!eded( +ith inland oining at a later date.

:aving been impressed( ho+ever( by the early su!!esses of the European Community( it +as not long before the Fritish overnment +as rethin,ing its refusal to play an a!tive role in the +or, of Europeanunifi!ation. 't +as a+are that the United Gingdom !ould not maintain its politi!al influen!e if it played a

preponderant role onto in the Common+ealth. @or !ould ETA( the obe!tives of +hi!h +ere e!onomi! asopposed to the European Community( +hi!h also had politi!al aims( allo+ it to impose its influen!e. o inAugust 1)1m the United Gingdom submitted an initial offi!ial appre!iation to be!ome a full member of theEuropean Community. That e6ample +as follo+ed by t+o other ETA member !ountries( namely ;enmar, ad

@or+ay( and also by 'reland.A!!ession of those !ountries initially met +ith the opposition of the "resident of the ren!h 7epubli!(

eneral de aulle +ho( being e6tremely distrustful of the United Gingdom?s appli!ation for a!!ession( de!lared(right in the middle of the negotiations in 1)3( that he +ished to dis!ontinue them. The se!ond Fritishappli!ation for a!!ession( in 1)#( +ith 'reland( ;enmar, and @or+ay +ere yet again asso!iated( +as note6amined for mu!h time o+ing to ran!e?s misgivings. The issue of the a!!ession of those !ountries !ould not beresolved until follo+ing eneral de aulle?s resignation in April 1)). After laborious negotiations( the Treatiesof Asso!iation +ere finally signed on 22 %anuary 1)#2. The ((ess!%n %n t#e Un!ted !n"d%,9 Irend ndDen,r too, effe!t on 1 %anuary 1)#3( follo+ing favorable referendum


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by the national parliaments. &nly @or+ay?s a!!ession +as prevented( after 53.)M of the @or+ay?s populationopposed a!!ession to the European Community in a referendum.

&n!e demo!ra!y +as restored in ree!e( "ortugal and pain( those !ountries submitted appli!ations for a!!ession to the European Community( in 1)#5 in ree!e?s !ase and in 1)## in the other t+o !ases. Gree(ea!!eded to the Community on 1 %anuary 1)81( and S&!n and P%rt$" on 1 %anuary 1)8.

=ith the signature of the single European A!t( in %une 1)8#( the T+elve de!ided to !omplete their internal mar,et on 31 ;e!ember 1))2. &ne year before that date( in ;e!ember 1))1( they de!ided in 4aastri!ht

to develop +ithin the single mar,et an e!onomi! and monetary union( a udi!ial and internal affairs poli!y and a!ommon foreign and se!urity poli!y( thus transforming the European E!onomi! Community into a EuropeanUnion 8EU:.

in!e the 1st %anuary 1))5( the Europe of T+elve be!ame the Europe of ifteen( +ith the ((ess!%n %) A$str!9 F!nnd nd S;eden( the people of @or+ay having again voted against membership of the Union by amaority of 52.8M.

The !ase of +ithdra+al of a Community 4ember tate has never o!!urred and is diffi!ult to imagine.:o+ever( even though it is not spe!ifi!ally provided for in the Treaty it is !ertainly possible( under !onditions to

be negotiated bet+een the outgoing tate and the others. The e6ample of reenland( although partial and spe!ial( bears +itness to that. reenland had been integrated into the EC in 1)#3 by virtue of its lin,s +ith ;enmar,. Thesmall population of reenland +as( ho+ever( most distrustful in parti!ular of the Community?s fisheries poli!y(as fishing +as the island?s main e!onomi! a!tivity. :aving voted by a small maority in a referendum to+ithdra+ from the Community( the ;anish overnment and the EC agreed( in ebruary 1)8( to allo+

reenland to leave the Community as from 1 ebruary 1)85 and to grant it the stt$s %) %6erses terr!t%r-asso!iated +ith the EC. A similar solution !ould be found( if a 4ember tate of the European Union de!ided to+ithdra+ from it. 't !ould( for e6ample( find itself in the European E!onomi! spa!e( +hi!h brings together( sin!ethe 1 %anuary 1))( the 4ember tates of the ETA( minus +it9erland.

The European !onstru!tion !an and one day !ertainly +ill a!!ommodate other European !ountries(notably those of Central and Eastern Europe( +hi!h +ere separated from it until the end of the 8$s by animpassable +all( but +hi!h( follo+ing the demolition of the latter( see it as a strong( fun!tional refuge. TheEuropean Union has already de!lared its intention to +el!ome these !ountries and Cyprus( but( before it !an doso( it must solve its institutional problems( +hi!h be!ome more and more a!ute after ea!h ne+ enlargement. 'thas to be emphasi9ed here that any tate +ishing to a!!ede to the Community has to be prepared to adopt( and be!apable of adopting( during a given transition period( all the Community la+ +hi!h !onstitutes the various

poli!ies e6amined in this +or,.

1.2 Tret- "ree,ents est7!s#!n" t#e E$r%&en Un!%n

Treaty 'n for!e ummary1. European Coal and teal Treaty


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The first European Treaty( the one establishing the E$r%&en C% nd Stee C%,,$n!t- 8ECSC: (+as signed in "aris in 18 April 1)51 and entered into for!e on 25 %uly 1)52. 'ts main obe!tive +as to eliminatethe various barriers to trade and to !reate a !ommon mar,et in +hi!h !oal and steel produ!ts from the 4ember tates !ould move freely in order to meet the needs of all Community( inhabitants( +ithout dis!rimination ongrounds of nationality. Capital and +or,ers in both se!tors should also !ir!ulate freely. 'n order that all this !ould

be a!hieved( the Treaty laid do+n !ertain rules on investment and finan!ial aid on produ!tion and pri!es( onagreements and !on!entrations of businesses ad on transport and Community institutions( in!luding a :igh

Authority and a spe!ial Coun!il of 4inisters( the de!isions of +hi!h +ould be binding on all 4ember tates.Ambitious despite its restri!ted s!ope( the ECC Treaty introdu!ed a European Assembly and a European Courtof %usti!e. The intentions of the founders of the ECC +ere( indeed( that it should be an e6periment( +hi!h !ouldgradually be e6tended to other e!onomi! spheres( !ulminating in a European ederationD.

The ECC Treaty +as !on!luded for 5$ years( +hen it +ill e6pire in the year 2$$2( the spe!ifi! rules!overing these t+o se!tors +ill be in!orporated into the EEC Treaty.

The Treaty establishing the E$r%&en At%,!( Ener"- C%,,$n!t- 8EAEC9 EUROATOM: +assigned in 7ome on 25 4ar!h 1)5# and !ame into for!e on 1 %anuary 1)58. 'ts aim +as to !reate a !ommonmar,et for nu!lear materials and eBuipment( establish !ommon nu!lear legislation( introdu!e a !ommon systemfor suppliers of fissile materials( and introdu!e a system for supervising the pea!eful use of nu!lear energy and!ommon standards for nu!lear safety and for health and safety prote!tion of the population and +or,ers againstioni9ing radiation. The ,ey elements in this Treaty +ere( ho+ever( the !oordination of the resear!h programmesof the 4ember tates and a oint resear!h programme( implemented in a %oint 7esear!h Centre( +hi!h +as to

develop te!hnology and stimulate nu!lear produ!tion in Europe.igned at the same time as the Euroatom Treaty the E$r%&en E(%n%,!( C%,,$n!t- 8ECC: Treatysigned in 7ome on 25 4ar!h 1)5#( it provided detailed plans )%r t#e (ret!%n %) (%,,%n ,ret among itssignatories. That involved*

a> The a!hievement of a !ustoms union entailing( on the other hand( the abolition of !ustoms duties(import Buotas and other barriers to trade bet+een 4ember tates( on the other hand( the introdu!tion of aCommon Customs Tariff visKvis third !ountries.

b> 'mplementation( harmoni9ation of national poli!ies of )%$r 7s!( )reed%,s* freedom of movementof goods( of !ourse( but also freedom of movement of salaried +or,ers( freedom of establishment and freedom to

provide servi!es by independent persons and !ompanies and( finally( freedom of !apital movement.An important amendment to the Treaties establishing the European Communities too, la!e on 1 %uly

1)8# +ith the !oming into for!e of the S!n"e E$r%&en A(t. upplementing in parti!ular the EEC Treaty( theingle A!t !ommitted the Community to adapt measures +ith the aim of progressively establishing the internal

mar,et over a period e6piring on 31 ;e!ember 1))2. At the same time it !onse!rated the European Coun!il(European !ooperation on foreign poli!y and so!ial and e!onomi! !ohesion( bet+een 4ember tates. astly( it!onfirmed the Community?s !ompeten!e in numerous fields* so!ial( environmental( resear!h and te!hnology.

EUROPEAN UNION

F!rst &!r5EUROPEAN COMMUNIES

EC

ingle mar,et and measures la+Trade poli!y;emo!ra!y 6enophobia

NE= OR AMENDEDighting terrorismE!onomi! and monetary unionTransEuropean net+or,s;isarmament7esear!h and environmentEurope?s se!urity frame+or, E6ternal bordersEUROATOM ECSC

Se(%nd &!r5COMMON FOREIGN AND

SECURITY POLICY

>F%re!"n &%!(->C%%&ert!%n 7et;een B$d!(!Agri!ultural poli!y"ea!e,eeping "oli!e !ooperationAid to nonmember !ountriesighting drugs and the arms trade

PROVISIONS ON5 SECURITYPOLICY

Criminal a!ts against !hildren(EU !iti9enship;ra+ing on the =EU* BuestionsConsumer prote!tioninan!ial aspe!ts of defenseo!ial poli!y'mmigration poli!y

T#!rd &!r5USTICE AND HOME AFFAIRs

CO>OPERATION

Customs union andCooperation( !ommon positionsauthorities in !ivil and !riminale!toral poli!y:uman rightsCombating ra!ism andighting organi9ed !rimeTraffi!,ing in human beingsEdu!ation and !ulture !on!erning these!urity of the EU:ealthongterm*Asylum poli!y

8


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Fut it is the Tret- %n E$r%&en Un!%n 8TEU>( signed in Mstr!(#t on # %anuary 1))2 that mar,ed ane+ stage in the pro!ess of !reating an ever!loser union among the peoples of Europe. The Union is founded onthe European Communities and supplemented by ne+ poli!ies( and forms of !ooperation. A!!ording to Arti!le Fof the Treaty( the Union sets itself the follo+ing obe!tives*

To promote e!onomi! and so!ial progress +hi!h is balan!ed and sustainable( in parti!ular through he!reation of an re ;!t#%$t !ntern )r%nt!ers( through the strengthening of e!onomi! and so!ial !ohesion and

through the establishment of e!onomi! and monetary union( in!luding ultimately a single !urren!y. to assert its identity on the international s!ene( in parti!ular through the implementation of a (%,,%n)%re!"n nd se($r!t- &%!(-( in!luding the eventual framing of a !ommon defense poli!y( +hi!h might in timelead to a !ommon defense.

to strengthen the prote!tion of the rights and interests of the nationals of its 4ember tates throughthe introdu!tion of (!t! pro!edure and of the maority voting in the Coun!il( but ane+ amendment of the TEU or a ne+ Treaty +ould be ne!essary in order to !omplete the reform of theinstitutions and ma,e it possible for them to +or, in the !onte6t of more than t+enty 4ember tates.

in!e the !iti9ens have the rights and obligations deriving from the European Treaties( they !an rightly!laim the transparen!y of these te6ts. The Union?s basi! Treaties are very diffi!ult to read and understand( +hi!his hardly li,ely( to mobili9e publi! opinion in their favor. The Treaty of Amsterdam( +hi!h in!ludes !onsolidatedversions of the t+o main Treaties( the one on the European Union and the one establishing the EuropeanCommunity ( +ith a ne+ numbering of their arti!les( gives a beginning of the solution of their problem.

The Tret- %) N!(e +hi!h +as signed on 2* Fe7r$r-9 2001 should mar, the end of a prolonged phaseof adustment for the EU. Con!luding the 'ntergovernmental Conferen!e held in 2$$$ at @i!e( fo!using on thethree issues Nleft over? from Amsterdam si9e and !omposition of the Commission( +eighting of votes in theCoun!il and possible e6tension of Bualified maority voting as +ell as other ne!essary amendments to

the Treaties arising as regards the European institutions in !onne!tion +ith the above issues and in implementing

)


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the Treaty of Amsterdam. A generally a!!epted aim of re+eighting +as to ensure that any +inning !oalitionunder O40 +ill represent a reasonable maority of the population and that de!isions !annot be blo!,ed by toosmall a minority. Pet the basi! goal +as a!hieved* the possible institutional obsta!les to enlargement +ereremoved. There +as an agreement to have one Commissioner per 4ember tate as of 2$$5 and a redu!tion to anunspe!ified number less than that of the 4ember tates on!e there are 2# !ountries in the EU( a !omple6 systemof re+eighting of votes +ith a triple threshold for Bualified maority a limited e6tension of Bualifiedmaorityvoting( and some rela6ation of the !onditions for enhan!ed !ooperationD. 't is not possible to foresee e6a!tly

ho+ the ne+ arrangements may +or,( and they may be modified before they !ome into for!e.1.+ T#e C%,,$n!t- e" s-ste,

'n the image of the European !onstru!tion( the !ement is the +ill of the different nations to live pea!efully together( the building plans are the treaties and the bri!,s are the e" (ts adopted by the "arliamentand the Coun!il. These legal a!ts may be underta,en by the !ompetent institutions +ith legal effe!t only if theyare empo+ered to do so by the European Treaties . Arti!le 2) of the ECTreaty provides for five forms of legal a!t( ea!h +ith a different effe!t on the 4ember tates legal systems* someare dire!tly appli!able in pla!e of national legislation( +hile others permit the progressive adustment of thatlegislation to Community provisions.

The Re"$t!%n has a general s!ope( is binding in all its elements and is dire!tly appli!able in ea!h4ember tate. %ust li,e a national la+( it gives rise to rights and obligations dire!tly appli!able to the !iti9ens of

the European Union. 7egulations enter into for!e on a date +hi!h they lay do+n or( +here they do not set a date(on the t+entieth day follo+ing their publi!ation in the &ffi!ial %ournal of the European Communities. There"$t!%n s$7st!t$tes E$r%&en ; )%r nt!%n ; nd !s t#ere)%re t#e ,%st e))e(t!6e e" !nstr$,ent&r%6!ded )%r 7- t#e EC Tret-. As European la+sD( 7egulations must be !omplied +ith fully by those to+hom they addressed .

The D!re(t!6e binds any 4ember tate to +hi!h it is addressed +ith regard to the result to be a!hieved(+hile allo+ing the national authorities urisdi!tion as to the form and methods used. 't is a sort of Communityframe+or, la+ and lends itself parti!ularly +ell to the harmoni9ation of la+s. 't defines the obe!tive or obe!tives to be attained and leaves it to the 4ember tates to !hoose the forms and instruments ne!essary for !omplying +ith it. in!e the 4ember tates are only bound by the obe!tives laid do+n in dire!tives( they havesome dis!retion( in transposing them into national la+( in ta,ing into a!!ount of spe!ial national !ir!umstan!es.They must ho+ever( ensure fulfillment of the obligations arising out of the Treaty or resulting from a!tion ta,en

by the institutions of the CommunityD . Although they are generally published in the &ffi!ial

%ournal( ;ire!tives ta,e effe!t by virtue of being notified to the 4ember tates to +hi!h they are addressed. Thelatter are obliged to adopt the national measures ne!essary for implementation of the ;ire!tive +ithin timelimitsset by it( failing +hi!h they are infringing Community legislation.

The De(!s!%n id binding on the addressees it indi!ates( +ho may be one( several( or even all the4ember tates or one or more natural or legal persons. This variety of potential addresses is !oupled +ith avariety in the s!ope of its !ontents( +hi!h may e6tend from a Buasi regulation or a Buasi dire!tive to a spe!ifi!administrative de!ision. 't ta,es effe!t on its !ommuni!ation to the addresses rather than on its publi!ation in the&ffi!ial %ournal. 'n any !ase( a!!ording to the Court of %usti!e( a de!ision !an produ!e dire!t effe!ts !reating for the individuals rights that national urisdi!tions must safeguard1.

'n addition to these legal a!ts( the effe!ts of +hi!h are binding on the 4ember tates( the Communityinstitutions and( in many !ases( the !iti9ens of the 4ember tates( the Coun!il and the Commission !an adoptRe(%,,endt!%ns suggesting a !ertain line of !ondu!t and opinions assessing a !urrent situation or !ertainfa!ts in the Community or the member tates. These instruments enable the Community institutions to adopt

positions in a nonbinding manner( i.e. +ithout any legal obligations for the addressees 4ember tates andHor !iti9ens. urthermore( the Coun!il and the European "arliament adopt Res%$t!%ns9 +hi!h are also not binding(suggesting a politi!al desire to a!t in a given area.

=hile 7esolutions and opinions are published in the CD series of the O))!(!%$rn %) t#e E$r%&en C%,,$n!t!es 8O:9 binding a!ts and re!ommendations as +ell as (%,,%n&%s!t!%ns nd B%!nt (t!%ns of the !ommon foreign and se!urity poli!y and of usti!e and home affairs are published in the D series legislation of the &%. 't is the binding instruments that!onstitute Community la+( that is( the la+ adopted by the institutions in order to pursue the obe!tives of theEuropean Treaties( giving !ertain rights and obligations to the !iti9ens and obliging the 4ember tates to adapttheir legislation andH or the administrative pra!ti!es.

Community la+ is uniformly and entirely valid throughout the Community and !annot be invalidated bythe individual la+ of one 4ember tate. 't ensures from the Treaties and the !onstant de!isions of the Court of

QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ

1. %udgement of &!tober 1)#$( !ase )H#$( rad( EC7 1)#$( p.838

1$


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%usti!e that this la+ has &re(eden(e %6er nt!%n ;( even the !onstitutional la+( of the 4ember tates(+hether it predates or postdates Community legislation. 'n fa!t( the 4ember tate have definitively transferredsovereign rights to the Community they !reated( and they !annot subseBuently go ba!, on that transfer throughunilateral measures +hi!h are in!ompatible +ith the !on!ept of the Community.

1./ T#e C%,,$n!t- )!nn(es

The !onventional international organi9ations su!h as the U@ or the &EC; are finan!ed by !ontributionsfrom their member !ountries. 'n most instan!es their finan!ial reBuirements amount to staff and operationale6penditure* if they are entrusted +ith operational tas,s( their finan!ing is generally provided on an a la !arteD

basis by those member !ountries( +hi!h de!ided on those tas,s. 't is virtually never a Buestion( in su!horgani9ations( of finan!ial transfers or even of finan!ial !ompensation. The European Community( on the other hand( although it is not a federation( pursues !ertain federal obe!tives( and its e6penditure in the main!orresponds to a trns)er %) res%$r(es from the national to the supranational level. 'ndeed( sin!e 1)#$( theCommunity !ontrols its o+n resour!es.

The first European ta6 +as introdu!ed +ith the !reation of the ECC. Arti!le ) of the Treaty of "arisstipulates that the :igh Authority is empo+ered to pro!ure the funds it reBuires to !arryout its tas,s by imposing e6!es %n t#e &r%d$(t!%n %) (% nd stee@. 't may itself determine the mode of assessment and the amount of that ta6. The levies are assessed annually on the various ECC produ!tsa!!ording to their average value( the rate thereof shall not( ho+ever( e6!eed 1 per!entR. The system applied in

this !onne!tion by the Commission is similar to the 0AT system. The levy is applied to underta,ings in the steeland !oal se!tor. in!e 1))( the Commission has gradually redu!ed the levy( thus leading to its total elimination+hen the ECC Treaty e6pires 1. After the e6piration of the Treaty( the assets of the ECC inliBuidation should revert to the Communities revenue and be administered by the Commission2.

"rovision had been made in the EEC Treaty for repla!ing the 4ember tates initial!ontributions


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The Commission had ta,en a!!ount of a number of fa!tors( in parti!ular the e!onomies obtainable under the agri!ultural guideline( the effe!t of greater !on!entration of stru!tural e6penditure on the most needy regions(the fruits of e!onomi! gro+th and the benefits of budgetary dis!ipline in the !onte6t of e!onomi! gro+th and the

benefits of budgetary dis!ipline in the !onte6t of e!onomi! and monetary union.As far as C%,,$n!t- e4&end!t$res are !on!erned( +e should note that they have in!reased bet+een

the early eighties and the early nineties from 1.# to 2.M of all publi! e6penditure in the 4ember tates. Theystill represent( ho+ever( little more than one per!ent of the !umulative ross 'nternal "rodu!t of the 4ember tates. 4ore than )$M of the re!eipts of The European Union are redistributed to the 4ember tates and serveto finan!e the obe!tives of the various !ommon and Community poli!ies. Thus( out of a total of EU7 )# billion +ere allo!ated to the !ommon agri!ultural poli!y( EU7 3) billion to stru!tural measuresin!luding the tru!tural unds( EU7 5.8 billion to other internal poli!ies( roughly the same amount toe6ternal a!tion of the Union ( EU7 .5 billion to administrative e6penditure and the remainingamount to reserves in!luding guarantees2. 't is interesting to note that the guarantee of the Community budget!overs lenders +hen the Community floats an issue under one of its finan!ial instruments( su!h as the balan!e of

payments fa!ility or the finan!ial assistan!e for !ertain nonmember !ountries. A uarantee und for e6ternala!tions is designated to reimburse the Community?s !reditors in the event of default by the re!ipient of a loangiven or guaranteed by the Community in a nonmember !ountry3.

T7e 1.2 T#e EU $d"et )%r 2000

In(%,e

1. Coun!il ;e!ision )H#28( &% 2)3( 12.11.1))2. ;e!ision 1)))H1$5( &% 3)( 12.$2.1)))3. Coun!il 7egulation 2#28H)( &% 2)3( 12.11.1)) and Coun!il 7egulation 11)H))( &% 13)( $2.$.1)))

E4&end!t$res

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The General udget of the European Union

The EU is endo+ed +ith revenues( +hi!h it is empo+ered to dis!harge for !ertain spe!ified fun!tions(in!luding institutional administration and poli!yrelated e6penditure. These revenues (!ustoms duties ( and @" resour!es .

in!e 1)88 e6penditure has been divided into s!4 7r%d (te"%r!es*1. Agri!ultureI2. tru!tural operationsI3. 'nternal poli!ies I. E6ternal I

5. 7epayments and administrationI. 4onetary reserves.

The annual in!reases of e6penditure on ea!h !ategory have to be !ontained +ithin an agreed rate of in!rease."oliti!al priorities have been refle!ted in allo+ing the rates of in!rease to differ bet+een !ategories. or e6ample( sin!e 1)88 Categories 2( 3 and have been allo+ed to e6pand more rapidly than others. @onetheless(European Union e6penditure is still dominated by agri!ulture and in parti!ular( for pri!e guarantee purposes.=hile the amount spent on agri!ulture had been redu!ed to 5.Mof total !ommitment appropriations by 1)))( this is only approa!hed by spending on stru!tural operations( +hi!h a!!ounted for 3.8M of total spending in 1))). Gey areas su!h as edu!ationand the environment and other internal poli!ies su!h as resear!h !laim only 5.)M of the budget( and e6ternal

poli!ies a !omparable .$M. EBually( +hile it is often argued that the EU is e6!essively bureau!rati!( it should be noted that only .5M of the EU budget is spent on administration( +hi!h is probably

not e6!essive for any organi9ation of its si9e. T+othirds of this e6penditure goes to the European Commission.'n 1)))( 1.2M of the EU?s budget +as dire!ted to+ards !ategory . These reserves are used

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for a variety of purposes( in!luding emergen!y aid.

General references on the EU and suggested readings!

1. ;'@A@ ;esmond( Ever Closer Union* an 'ntrodu!tion to European 'ntegration( 2nd ed.( 4a!millan(Fasingsto,e( 1)))( pag 13.

2. ;E7PE Christophe( ;i!tionnaire de l?union Europeenne. "olitiBues( institutions( programmes( ;eFoe!,HUniversite( Fru6elles( 1))8.3. "ACA ontaine( A ne+ idea for Europe* The !human de!laration 1)5$2$$$( 2nd ed.( European

do!umentation( u6embourg( 2$$$( pag 5#I. 4&U' @i!holas( uide to European Union poli!ies( European tudy ervi!e( Frussels( 1)))5. "EG4A@ %a!Bues( European 'ntegration. 4ethods and e!onomi! analysis( Addison =esley ongman(

:arlo+( Esse6( 1))#.. EU7&"EA@ C&44''&@( :o+ does the European Union +or,L &ffi!e for offi!ial "ubli!ations of the

European Communities( Frussels( 1)).#. 4oussis @i!holas A!!ess to European UnionD( European tudy ervi!e( 2$$1( pag #)I 121I 2328I8. EU7&"EA@ "&'CP CE@T7E( 4a,ing ense of the Amsterdam treaty( 'nstitute of European Affairs(

1))#.). EU7&"EA@ C&44''&@( Treaty of Amsterdam* +hat has !hanged in Europe( u6embourg( 1)))

1$. ;7UE@E erard( ;roit et "olitiBues de la Communaute et de l?Union europeenne 5e ed( "U( "aris(1))8.11. AA@ Frigid( The inan!es of the European Union( 4a!millan "ress( Fasindsto,e( 1))#.12. 7i!hard =elford( Gate "res!ott( European Fusiness( th edition( D( 2$$1( pag )(88#I13.European Commission( ?Europe des Buin9e* !hiffres !lesD( 1))( pag I1. European "arliamentD( &ffi!e for offi!ial publi!ations of the European Communities( u6embourg( 4ar!h2$$$( pag 12I15. Ed+ard Fest( The Treaty of @i!e* @ot Feautiful but it?ll doD( Eipas!ope ( pag 2)I1. 4eunier( phie and Galypso @o!olaidis( Trade Competen!e in the @i!e TreatyD( ECA 7evie+( 0ol.1(

@o.2( pring 2$$1

http*HHeuropa.eu.intHhttp*HHeuropa.eu.intHs!adplusH lossary of EU terminology

http*HHeuropa.eu.intHeurle6 ull te6t legislative information

1

http://europa.eu.int/http://europa.eu.int/scadplus/http://europa.eu.int/eur-lexhttp://europa.eu.int/http://europa.eu.int/scadplus/http://europa.eu.int/eur-lex


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2. T#e str$(t$re nd )$n(t!%ns %) E$r%&en Inst!t$t!%ns2.1 T#e E$r%&en C%,,!ss!%n2.2 T#e C%$n(! %) t#e E$r%&en Un!%n2.+ E$r%&en Pr!,ent2./ C%$rt %) $st!(e2.' Ot#er EU Inst!t$t!%ns 8E(%n%,!( nd S%(! C%,,!ttee9 C%,,!ttee %) t#e Re"!%ns9 t#e

E$r%&en In6est,ent n9 t#e C%$rt %) A$d!t%rs:2.* Inst!t$t!%n re)%r,5 )$t$re (#en"es

O7Be(t!6es5♣ delimitation of the main institutions of the European UnionI♣ ,no+ledge of the role and po+ers in the European UnionJs main institutionsI♣ a!Buisition pro!edure for establishing the agenda( adoption of EU legislation in the EUI♣,no+ledge of the organi9ation and operation of the main EU institutions( and other institutions and

bodies of the EUJs institutional stru!tureI♣ ,no+ledge of institutional bodies and spe!iali9ed agen!ies of the EU and their main s,ills.

e-;%rds5 e(%n%,!( !nte"rt!%n9 )ree trde re9 ($st%,s $n!%n9 ,ret (%,,%n e(%n%,!(

$n!%n9 ,%netr- $n!%n9 e(%n%,!( $n!%n (%,&ete9 stt!( e))e(ts9 d-n,!( e))e(ts.

THE INSTITUTIONS OF THE EU

E$r%&en C%$n(!28 :eads of tateor overnment andthe "resident of theCommission

C%$n(! %) t#e EU

28 ministers

E$r%&en C%$rt %)

$st!(e28 %udges

C%,,!ttee %) t#eRe"!%ns

353 members

E$r%&en Pr!,ent#51 members

E(%n%,!( ndS%(! C%,,!ttee

353 members

C%$rt %) A$d!t%rs28 members

E$r%&en C%,,!ss!%n28 members

E$r%&en Centr n E$r%&en

!n6est,ent n

:aving !onsidered a brief history of European integration and the role of integration theories in helping us tounderstand path+ays and progress( attention should no+ be turned to the organi9ation of the EU and to the institutionalarrangements of the Community pillar. 4u!h re!ent attention has been paid to the EU as a governan!e system and anunderstanding of its basi! elements is a fundamental reBuirement for European businesses. Those firms hoping toinfluen!e the de!isionma,ing pro!ess reBuire a detailed understanding of the openings for dialogueand of the !enters of e6e!utive and legislative authority. Those firms operational in the European business environmentshould at least understand ho+ EU rules( regulations and dire!tives( many of +hi!h govern their a!tivity and behavior( areissued and from +hi!h !enters of po+er. 'n order to understand the +or,ings of the EU it is ne!essary to outline the roleand a!tivities of ea!h of four governing institutions +ith a role in the initiation( ena!tment( interpretation and appli!ationof Union la+.

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Or"n!

national governmentsI governments promote interests of member states in the C%$n(! %) t#e E$r%&en Un!%n.

Sett!n" t#e "end. T#e E$r%&en C%$n(! sets the general poli!y of the EU but has no po+ers legislative. 't is headed by a president and brings together the :eads of tate and overnment of the member !ountries( together +ith EuropeanCommission by the "resident t+i!e per semester( during some meetings ta,ing pla!e over several days. =hile its role inshaping the dire!tions of the UnionJs development has so far been an important one( mar,ed by initiatives su!h as themonetary union( in an enlarged Union( it seems to a!Buire the role of a dis!ussion forum in +hi!h su!!essive "residen!iesof the Coun!il are trying to !oordinate the obe!tives and priorities of ea!h term..T#e d%&t!%n %) E$r%&en e"!st!%n. ;eveloping and adopting European legislation involves three institutions* E$r%&en Pr!,ent( +hi!h represents the EUJs !iti9ens and is dire!tly ele!ted by themI C%$n(! %) E$r%&en Un!%n( represent the 4ember tates. "residen!y of the Coun!il is held on a rotating basis by the4ember tatesI

T#e E$r%&en C%,,!ss!%n( +hi!h represents the interests of the Union as a +hole. Together( these three institutionsdevelop poli!ies and la+s that apply throughout the Union( through the Sordinary legislative pro!edureS . 'n prin!iple( the Commission proposes legislative a!ts( the "arliament and Coun!il adopt them. ubseBuently(the Commission and the 4ember tates implement them( and the Commission must ensure that EU la+ is !orre!tlyapplied.Or"n! to de!ide on the!ontent of la+s and for adopting them. This pro!ess is !alled Sordinary legislative pro!edureS .Under the isbon Treaty( +as in!rease the number of poli!y areas !overed by the ne+ ordinary legislative pro!edure. Thisgives the European "arliament more po+er to influen!e the !ontent of legislative a!ts in se!tors su!h as agri!ulture(energy poli!y( immigration and EU funds. Also( it reBuires "arliamentJs opinion on a number of important de!isions su!has the a!!ession of ne+ !ountries to the EUI

Table 1.1A%(t!%n %) sets !n t#e E$r%&en Pr!,ent C%$ntr- @umber of

4embers

ermania )ran aț #'talia( 7egatul Unit #3

pania 5"olonia 517omnia 32&landa 2Felgia( re!ia( Ungaria( "ortugalia( 7epubli!a CehV 21uedia 2$Austria 18Fulgaria 1#inlanda( ;anemar!a( lova!ia 13CroaWia( 'rlanda( ituania 11etonia( lovenia 8Cipru( Estonia( u6emburg( 4alta

T%t #51

1


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2. It ,%n!t%rs t#e %t#er E$r%&en !nst!t$t!%ns ( espe!ially the Commission( to ensure that they operate demo!rati!ally."arliament e6er!ises its influen!e to other EU institutions in several +ays. =hen forming a ne+ Commission( its 28members !an not enter the duties +ithout "arliamentJs approval. 'f do not agree +ith thenomination of one of the nominated Commissioners members of "arliament !an ree!t the entire proposed team. Also the"arliament may reBuest the resignation of the Commission in e6er!ise. The pro!edure is !alled Smotion of !ensureS.

"arliament retains !ontrol over the Commission by e6amining the reports they dra+ it and interpellation of Commissioners. "arliamentary !ommittees play an important role in this respe!t. 4embers of "arliament e6amines petitions from !iti9ens and form !ommittees of investigation. =hen national leaders are meeting in the European Coun!il("arliament must give its opinion on the topi!s on the agendaI+. De7te nd d%&t t#e EU 7$d"et ;!t# t#e C%$n(! . "arliament adopts the annual budget EU together +ith theCoun!il of the European Union. 'n the frame+or, of "arliament there is a !ommittee that monitors ho+ the budget isspent. Every year( "arliament ta,es a de!ision on ho+ the Commission has managed the budget of the previous finan!ialyear.C%,&%s!t!%n %) t#e E$r%&en Pr!,ent. =ith the entry into for!e of the isbon Treaty on 1 ;e!ember 2$$)( thenumber of deputies has been temporarily in!reased to #5. :o+ever( the ma6imum number of #51 +as a!hieved +ith theele!tions of 2$1. The number of parliamentarians from ea!h !ountry is about in proportion to the number of inhabitantsof that !ountry. Under the isbon Treaty( no !ountry !an less than or more than ) representatives. Therefore( theEuropean "arliament no+ has #51 members( divided bet+een 4ember tates as sho+n in Table 1.1.

4embers of European "arliament and EU2. "arliament may !onstitute spe!ial !ommittees or !ommittees of inBuiry . Under Arti!le 1)1( ea!h !ommittee or delegation ele!ts itso+n offi!e( !onsisting of a !hairman and up to four vi!epresidents in 4ar!h. "oliti!al groups 4E"s are not in national

blo!,s but a!!ording to politi!al affinities( in transnational groups. Under the 7ules of "ro!edure( a politi!al group must!omprise 4embers ele!ted in at least one Buarter of the 4ember tates and be made up of at least 25 deputies . "oliti!al groups arrange regular meetings in the +ee, before the partsession and +ee, of session and +or,shops toestablish the basi! prin!iples of their +or,. ome politi!al groups !orrespond supranational politi!al parties operating inthe EU.

E$r%&en &%!t!( &rt!es nd )%$ndt!%ns. The European "arliament re!ommends !reating an environment !ondu!iveto the ongoing development of European politi!al parties and foundations( in!luding the adoption of frame+or, legislation. Arti!le 22 TEU provides a legal basis for adoption under the ordinary legislative pro!edure( of a statute for

politi!al parties at European level and rules regarding their funding. 4ost politi!al parties are !reated under 7egulation no. 2$$H2$$3( +hi!h +as revised in 2$$# to introdu!e the possibility of finan!ing

politi!al foundations to support parties that are affiliated +ith edu!ational and resear!h a!tivities. in!e funding for ele!tion !ampaigns remains +ea, and is still sube!t to national regulations( the Commission proposed a ne+ regulationrepealing 7egulation 2$$H2$$3( +hi!h +ill !ome into for!e in 2$1( follo+ing a first reading agreement bet+een"arliament and Coun!il in April 2$1.E$r%&en Pr!,ent Se(retr!t Se(retr->Geners O))!(e !onsists of 12 ;ire!torates eneral and the egalervi!e. 'tJs mission is to !oordinate legislative +or, number for ea!h !ommittee 4embers set out in paragraph 1 of theEuropean "arliament de!ision of 1 ;e!ember 2$11 on the numeri!al strength of the standing !ommittees


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"arliamentJs resolution of 1 April 2$1 on the proposal for a regulation of the European "arliament and of the Coun!ilon the statute and finan!ing of European politi!al parties and European politi!al foundations( "#QTA $21 in!onne!tion +ith the European "arliamentJs resolution of 1 April 2$1 on the finan!ing of politi!al parties( "#QTA $22. #3 and to hold plenary sessions and meetings. 't also provides te!hni!al and legal assistan!e and e6pert advi!e

parliamentary bodies and 4embers to assist them in e6er!ising their mandates. The e!retariat provides interpretationand translation servi!es for all meetings and offi!ial do!uments.O&ert!%n E$r%&en Pr!,ent5 Under the Treaty( "arliament organi9es its +or, independently. 't shall adopt its rules

of pro!edure by maority vote . Unless other+ise provided in the Treaties( the "arliament de!ides bymaority vote . 't de!ides the agenda for its session periods( +hi!h are intended mainly to the adoptionof the reports prepared by its !ommittees( Buestions to the Commission and the Coun!il( pun!tual and urgent debates andstatements by the "residen!y. Committee meetings and plenary sessions are publi! and broad!ast on the 'nternet."arliament is based in trasbourg( +here it holds 12 monthly partsession( in!luding the session in +hi!h it de!ided on theEUJs annual budget. 'n a!!ordan!e +ith Arti!le 22) TEU( "arliament may meet in e6traordinary partsession at thereBuest of a maority of its !omponent members( the Coun!il or the Commission. Additional sessions held in Frussels."arliamentary !ommittees meet in Frussels. 'n general( in one year( "arliament has 12 periods of fourday session intrasbourg and si6session t+oday Frussels.EUROPEAN COUNCILThe European Coun!il +as !reated in 1)# +ith the intention of establishing an informal forum for dis!ussion bet+een:eads of tate or overnment. The European Coun!il has Bui!,ly be!ome the body that sets the UnionJs obe!tives andthe line follo+ed to a!hieve them( in all areas of EU a!tivity. 't a!Buired a formal status in the Treaty of 4aastri!ht in

1))2( that Sthe European Coun!il impetus for its development and defines EU general politi!al guidelines thereofS. in!e1 ;e!ember 2$$) under the Treaty of isbon( the European Coun!il be!ame one of the seven institutions of the Union.The European Coun!il has a dual role setting priorities and overall politi!al dire!tion of the EU and ta!,ling !omple6 or sensitive that !an not be solved by intergovernmental !ooperation to a ne+ level. =hile it may influen!e setting the

politi!al agenda of the EU( has no po+er to adopt a!ts. At the European Coun!il( the :eads of tate meet government inevery !ountry of the EU Commission "resident and "resident of the European Coun!il +ho !hairs meetings. :igh7epresentative for Common e!urity and ;efen!e "oli!y also ta,e part in the meetings. European Coun!il meetings aresummit in +hi!h EU leaders ta,e de!isions on general poli!y priorities and maor initiatives. @ormally organi9ed four su!h meetings a year( !haired by a permanent president. The European Coun!il shall ele!t its "resident( by Bualifiedmaority. The mandate of the "resident is t+o and a half years( rene+able on!e European Coun!il "resident ;onald Tus,.:is term began on 1 ;e!ember 2$1 and +ill end on 31 4ay 2$1#. The European Coun!il meets t+i!e every si6 months(!onvened by its "resident. =hen the situation so reBuires( the "resident shall !onvene an e6traordinary meeting of theEuropean Coun!il. The European Coun!il meets( usually in Frussels and is assisted by the eneral e!retariat of the

Coun!il.'f the Treaty does not !ontain spe!ifi! provisions on this issue( the European Coun!il ta,es its de!isions by !onsensus. 'nsome !ases( the rule of unanimity or Bualified maority( depending on the provisions of the Treaty. "resident of theEuropean Coun!il( "resident of the Commission and :igh 7epresentative for the Common oreign and e!urity not vote.'t is important to ma,e the distin!tion bet+een the European Coun!il( European Union and Coun!il of Europe.T#e E$r%&en C%$n(! !omprises the heads of state and government from ea!h EU !ountry.C%$n(! %) t#e E$r%&en Un!%n( ,no+n as the EU Coun!il represents forum bringing together ministers from member states to adopt la+s and !oordinate European poli!ies.C%$n(! %) E$r%&e !s n !nternt!%n9 !nter"%6ern,ent nd re"!%n (%$n(!.'t +as established on 5 4ay 1)) and brings together all the demo!rati! states of the European Union( and other !ountriesin !entral and eastern Europe. 't is independent of the European Union is different and the European Coun!il or theCoun!il of the European Union. The Coun!il of Europe is based in trasbourg and the main obe!tive is the promotion of demo!ra!y and prote!tion human rights( demo!rati! pluralism and rule of la+ in all European !ountries. Another

obe!tive is to en!ourage diversity and preserving !ultural identity of all member !ountries.COUNCIL OF THE EUROPEAN UNIONThe European Union Coun!il is the institution representing EU governments.Also ,no+n as the informal EU Coun!il or the Coun!il of 4inisters( representing forum bringing together ministers frommember states to adopt la+s and !oordinate European poli!ies.

T7e 1.2 Pres!den(- %) t#e C%$n(! %) t#e E$r%&en Un!%n !n 201/ J 2020C%$ntr- Per!%d Yerree!e %anuary%une 2$1'taly %uly;e!ember 2$1atvia %anuary%une 2$15u6embourg %uly;e!ember 2$15

@etherlands %anuary%une 2$1

lova,ia %uly;e!ember 2$1

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4alta %anuary%une 2$1#UG %uly;e!ember 2$1#Estonia %anuary%une 2$18Fulgaria %uly;e!ember 2$18Austria %anuary%une 2$1)7omania %uly;e!ember 2$1)inland %anuary%une 2$1$

The role of the EU Coun!il*1. Adopt EU legislation. Coun!il and "arliament have the last +ord on legislation proposed by the Commission.2. Coordinates the general e!onomi! poli!ies of the 4ember tates. EU 4ember tates have de!ided to pursue a !ommonoverall e!onomi! poli!y( !oordinated e!onomi! and finan!e ministers of ea!h !ountry. Among the obe!tives of the EUCoun!il( are* to !reate obs( improve edu!ation and health!are systems and in!reasing +elfare. =hile 4ember tates areresponsible( individually( for their o+n poli!ies in these areas( they !an fall a!ordasupra !ommon obe!tives and !ane6!hange e6perien!e.3. ign agreements bet+een the EU and other !ountries. Coun!il signs on behalf of EU agreements in various fields*environment( trade( development( te6tiles( fisheries( s!ien!e( te!hnology and transportation.. To approve the EUJs annual budget. Coun!il and "arliament de!ide ointly on the annual budget of the EU.5. oreign and defense poli!y ma,ers in the EU. @ational governments have !ontrol of these areas( but +or, together todevelop so !alled Common e!urity and ;efen!e "oli!y. The Coun!il is the main forum for !ondu!ting this !ooperation.EU does not have its o+n army. Fut to rea!t as Bui!,ly as in the !ase of international !onfli!ts and natural disasters( some

!ountries !ontribute troops to the rapid rea!tion for!e( +hi!h is involved only in humanitarian( res!ue and pea!e,eeping.. Coordinates !ooperation bet+een !ourts and poli!e for!es in member !ountries. EU !iti9ens must have eBual a!!ess to

usti!e throughout the Union. 'n the Coun!il( usti!e ministers are striving to ensure that the senten!es handed do+n by a!ourt in an EU !ountry in !ases of divor!e( e6ample are re!ogni9ed in all other 4ember tates. %usti!e and :omeAffairs ministers !oordinate surveillan!e of e6ternal borders and the fight against terrorism and international organi9ed!rime.C%$n(! ,e,7ers. The Coun!il is !omposed of permanent members. At ea!h meeting of the Coun!il( 4ember tatesshall send the ministers responsible for the dis!ussion on the agenda for e6ample( environment ministers( if the meetingfo!uses on environmental issues. That meeting +ill be !alled SEnvironment Coun!ilS.Chairing meetings. Coun!il brings together the foreign ministers is permanently !haired by the same person or the :igh7epresentative for Common e!urity and ;efen!e "oli!y. All other meetings are !haired by the minister from the !ountryholding the EU presiden!y at the time. or e6ample( if the Environment Coun!il meets in the period +hen Estonia holdsthe EU presiden!y( the meeting +ill be !haired by the Estonian environment minister. EU Coun!il "residen!y !alendar(

during 2$1 2$2$ is sho+n in Table 1.2.T#e 6%t!n" s-ste,. 'n general( the EU Coun!il adopted de!isions applying the rule SBualified maorityS. The !ountryJs

population is larger( the more votes are available to the !ountry. :o+ever( in reality( the number of votes is not stri!tly proportional to population( but +eighted in favor of !ountries +ith fe+er inhabitants

T7e 1.+. N$,7er %) 6%tes %) t#e ,e,7er sttes !n t#e EU C%$n(!C%$ntr- N$,7er %) 6%tes

ermany( ran!e( 'taly( the UG 2)pain( "oland 2#7omania 1

@etherlands 13Felgium( C9e!h 7epubli!( ree!e( :ungary( "ortugal 12

+eden( Fulgaria( Austria 1$Croatia( ;enmar,( inland( 'reland( ithuania( lova,ia #Cyprus( Estonia( atvia( u6embourg( lovenia 4alta 3 TOTAL +'2

or a proposal to be adopted( it +ill need to meet t+o types of maority* a !ountry and the EU population


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Or"n! and over 15$ +or,shops and highly spe!iali9ed !ommittees( ,no+n as Spreparatory bodies of the Coun!ilS. These preparatory+or,s e6amine legislative proposals and !ondu!t leading up to Coun!il de!isions.EUROPEAN COMMISSION The European Commission is one of the main institutions of the European Union thatrepresents and upholds the interests of the Union as a +hole. "ropose legislation and managing the implementation of European poli!ies and ho+ EU funds are spent. The European Commission represents the interests of the EuropeanUnion


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the Commission( appointment is sube!t to "arliamentJs vote of approval. rom 1 ;e!ember 2$1( the H!"#Re&resentt!6e %) t#e Un!%n )%r F%re!"n A))!rs nd Se($r!t- !s %(($&!ed 7- Feder!( M%"#er!n!. "reviously( thisfun!tion +as performed Catherine Ashton. Treaties of Amsterdam and @i!e have e6panded greatly !redentials.Pres!dent %) t#e C%,,!ss!%n. Therefore( it should define poli!y guidelines !ollege and also to determine the internalorgani9ation of the Commission. "resident gives( therefore( Commissioners different tas,s and responsibilities may!hange during his tenure. The members of the Committee shall appoint 0i!e e6!ept :igh 7epresentative Union for oreign Affairs and e!urity "oli!y. in!e the entry into for!e of The isbon Treaty( it !an also reBuiring a !ommissioner

to Buit ;epending +ithout having to see, the approval of the !ollege. Fr%, 1 N%6e,7er 201/9 )%r &er!%d %) ' -ers9t#e E$r%&en C%,,!ss!%n &res!dent !s en>C$de $n(er.O&ert!%n. ;aily a!tivity of the Commission is provided by the staff dire!tors( la+yers(e!onomists( translators( interpreters( se!retaries et!. &rgani9ed into departments !alled Sdire!toratesgeneralS or Commission servi!es. Ea!h ; is responsible for a parti!ular poli!y area and is headed by a ;ire!tor eneral +ho shallreport dire!tly to the "resident. ;s draft legislative proposals( but they do not behave offi!ial !hara!ter than the Collegeof Commissioners +hen they adopt in the +ee,ly meetings. The Commission manages a number of e6e!utive agen!ies.The term SCommissionS means both S!ollegeS of Commissioners and staff of the subordinated fun!tion( +hi!h operatesmainly in Frussels. The Commission has also an offi!e in ea!h EU 4ember tate. The Commissionmeets in Frussels on!e a +ee,( usually on =ednesday. =hen "arliamentJs plenary sessions held in trasbourg( theCollege of Commissioners is also meet in trasbourg. Agenda meetings are based on the +or, program of Commission.Ea!h item on the agenda is presented by the Commissioner responsible for the area !on!erned. Then the +hole !ollegeta,es a !olle!tive de!ision. The publi! does not have a!!ess meetings and debates( but may !onsult at any time( agenda

and pro!esses verbal. E6traordinary meetings are held in situations that reBuire urgent intervention or dis!ussions +ith theCoun!il of 4inisters( on some maor issues.The Commission operates a!!ording to the prin!iple of !ollegiality. ;e!isions are ta,en ointly by the College of Commissioners responsible( !olle!tively( to the European "arliament. The prin!iple of !ollegiality ensures* the Buality of de!isions( as ea!h proposal must be !onsulted on all CommissionersI independen!e of the institution( be!ause the de!isions are ta,en +ithout partisan pressuresI politi!al a!!ountability by all Commissioners( even +hen de!isions are ta,en by maority vote. Commissioners have node!isionma,ing po+er of its o+n( only if so empo+ered by Commission to a!t on its behalf in their respe!tive fields. 'nthis !ase( its legal and politi!al responsibility of the Commission. The "resident plays a maor role* defining the politi!alguidelines( assign a portfolio ea!h Commissioner and may( at any time( to alter their po+ers. College se!ures strategi! obe!tives and annual +or, program.Commissioners submit proposals to the College( +hi!h deliberates generally by !onsensus. At the reBuest of the!ommissioner( the !ollege may initiate a vote. 'n this !ase( de!isions are ta,en by simple maority. T+o other European

institutions play a vital role* European Court of %usti!e ensures !omplian!e +ith European la+I European Court of Auditors !he!,s the finan!ing of the UnionJs a!tivities.The duties and responsibilities of these institutions are laid do+n in the Treaty( they is the basis of everything the EUdoes. Treaties also establish regulations and pro!edures that the EU institutions must follo+. They are adopted by the:eads of tate and H or the "rime 4inisters of the 4ember tates and ratified by national parliaments.

THE EUROPEAN COURT OF USTICEin!e its !reation in 1)52( the mission of the Court of %usti!e of the European Union is to ensure S!omplian!e +ith thela+ in the interpretation and appli!ation ofS treaties and has urisdi!tion to hear disputes involving the governments of 4ember tates( EU institutions( !ompanies or individuals in spa!e EU. =ithin this mission( Court of %usti!e of theEuropean Union* revie+ the legality of a!ts of the institutions of the European UnionI

ensure that 4ember tates fulfill their obligations under the Treaties interprets EU la+ at the reBuest of national !ourts.Thus( it is the udi!ial authority of the European Union( in !ollaboration +ith the !ourts of the 4ember tates( ensureuniform appli!ation and interpretation of Union la+. Court of %usti!e of the European Union( +hose headBuarters is inu6embourg( !onsists of three !ourts*C%$rt %) $st!(e( Court


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rene+ed. "resident shall dire!t the Court of %usti!e and !hair meetings and deliberations in the !ase of larger panels of udges. The 0i!e"resident shall assist the "resident in the e6er!ise of his duties and repla!e him in !ase of fore!losure.O&ert!%n. The Court may sit in full( the rand Chamber or in !hambers of three or five udges. TheCourt shall sit in plenary in !ases provided for in the tatute and+here it !onsiders that a Buestion of e6!eptional importan!e. The Court shall sit in a rand Chamber +hen a 4ember tate or an institution that is part of a pro!ess( and in !ases of parti!ularly !omple6 or important. The other !ases are

heard in !hambers of five or three udges. The "residents of Chambers of five udges are ele!ted for a period of threeyears( and the !hambers of three udges for a period of one year. Court udgment on !ases notified. The five !ommontypes of !ase are the follo+ing*1> a!tions for delivery a preliminary ruling the national instan!es as, the Court to interpret a legislative european a!tI2> a!tions to !onsist the fulfillment of obligationsinitiated against governments that do not implement EuropeanlegislationI3> a!tion for !an!ellations +hen is !onsidered that !ertain EU legislation violates EU treaties or fundamental rightsI> a!tions in !onsisted the failure to a!t +hen EU institutions are a!ting to ta,e de!isions +hi!h are reBuired to ta,eI5> ;ire!t a!tion brought by individuals( businesses or organi9ations against EU de!isions or a!tion. =hereas Ea!h4ember tate has its o+n language and legal system spe!ifi!ally Court of %usti!e of the European Union is a multilingualinstitution. 'ts linguisti! regime does not have eBuivalent in any other !ourt in the +orld( be!ause ea!h of the offi!iallanguages of the Union anguage of the !ase may be. As regards dire!t a!tions( the language used in the 'ntrodu!toryappli!ation +ill be anguage of the !ase( namely

language in +hi!h it +ill ta,e pla!e. 7egarding demands of the pronoun!ement of preliminary rulings( the language of pro!eedings is the language of @ational !ourt of !ountry +hi!h addressing to the Court of %usti!e. ;is!ussions ta,ing pla!e during thesessions are translated simultaneously( as reBuired( into various offi!ial languages of the European Union.The udges deliberate( +ithout interpreters( using a !ommon language +hi!h( traditionally is ren!h. o(the Court isreBuired torespe!t a full multilingualism( due to the need to !ommuni!ate in the language of the parties and ensure thedissemination of its urispruden!e in all 4ember tates.EUROPEAN COURT OF AUDITORSEuropean Court of Auditors +as established in 1)#5 and is based in u6embourg. European Court of Auditors +asestablished to !arry out the audit of EU finan!es. The starting point for its audit a!tivity is the EU budget and EU poli!ies(mainly in areas related to e!onomi! gro+th and employment( added value( publi! finan!e( environment and !limate!hange. The CourtJs audit on the implementation of the budget for both revenue and e6penditure. CEC !he!,s ho+ theyare managed EU funds and its role is to revie+ the legality of operations of the Community budget and mat!hes theannual program its management( improving EU finan!ial management and to submit reports on the use of money

servants. 'n order to guarantee European ta6payers that publi! money is +ell spent effe!tively( the Court is empo+ered toaudit any person or organi9ation that manages European funds. To this end( freBuently !arries out on land.'n!luded in his +ritten reports to the European Commission and overnments of the 4ember tates. The auditors CourtfreBuently !arries out in the EU institutions( 4ember tates and the European !ountries re!eiving aid. Court a!tivityaimed mainly European Commission responsible funds( but in pra!ti!e( national authorities manages 8$M of revenuesand e6penses. &ne of the most important tas,s of the Court of Auditors is to submit to "arliament and the Coun!il anannual report on the previous finan!ial year . "arliament e6amines the CourtJs report thoroughly

before to de!ide +hether or not to approve the CommissionJs handling of the budget. The Court must issue an opinion onEU finan!ial legislation and the possibilities for !ombating fraud. o ECA mission is to !ontribute to improving EUfinan!ial management( promote a!!ountability and transparen!y for do!ument management and a!t as the independentguardian of the finan!ial interests of EU !iti9ens. As an independent e6ternal auditor of the European Union( the CourtJsrole is to !he!, that EU funds are !orre!tly a!!ounted for( if they +ere !olle!ted and spent in !omplian!e +ith rules andrelevant legislation and +hether to obtain the best !ostbenefit in their use.

C%,&%s!t!%n. ECA is independent of other Community institutions and has full freedom in the organi9ation and its audit planning and reporting. The Court !onsists of 28members from the 28 member states( +ith a term of si6 years.'n turn( members of the Court shall ele!t a !hairman +ith a term of three years. The Court of Auditors has appro6imately8$$ employees( not only auditors( but also translators and administrators. Auditors. They are divided into groups of audit.They prepare draft reports on +hi!h the !ourt ta,es de!isions.O&ert!%n. Court !an not grant san!tion the dis!overy of irregularities or fraud( but only inform the !ompetentCommunity bodies . CEC !an be organi9ed into SroomsS in order to adopt !ertain!ategories of reports and opinions.Ot#er !nst!t$t!%ns nd 7%d!es %) t#e s&e(!!!nst!t$t!%n )r,e;%r %) t#e EUE$r%&en Centr n 8EC: EC +as established in 1))8 +hen the euro +as introdu!ed( to managemonetary poli!y in the euro area. Fased in ran,furt( ermany( the ECF administers the single European !urren!y( theeuro and ensure pri!e stability in the EU. The ECF is also responsible for defining and implementing the EUJs e!onomi!

and monetary poli!y. European Central Fan, aim is*

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to maintain pri!e stability ( espe!ially in !ountries that use the euroI to maintain the stability of the finan!ial system( ensuring that the institutions are properly supervised mar,ets. ECF!ooperates +ith the !entral ban,s of all 28 4ember tates. Together( they form Eurosystem. The ECF also establishes!ooperation bet+een the !entral ban,s of the 1) 4ember tates ( +hi!h together !onstitute the single !urren!y and the euro. The e6isting !ooperation at the level of thesmall group !alled the SEurosystemS. The obe!tives of the s!heme are* defining and implementing the monetary poli!y of the euro areaI

defining and implementing the monetary poli!y of the euro areaI !ondu!ting foreign operationsI preservation and management of the reserves 4ember tatesI promoting an effi!ient payment system.The ECF also* fi6ed interest referen!e rates for the euro area and the money supply under !ontrolI manages the !urren!y reserves of the euro area buys and sells !urren!y( +hen ne!essary to maintain the balan!e of e6!hange ratesI ensure that finan!ial institutions are properly supervised and mar,ets by the national authorities and the

payment systems fun!tioning properlyI authori9e the !entral ban,s of the euro area !ountries to issue ban,notesI monitors pri!e trends and assessing the ris, that it might pose to the stability of the euro area. The ECF de!isionma,ing

bodies of the follo+ing* !ondu!ting foreign operationsI preservation and management of the reserves 4ember tatesI

promoting an effi!ient payment system.The ECF also* fi6ed interest referen!e rates for the euro area and the money supply under !ontrolI manages the !urren!y reserves of the euro area buys and sells !urren!y( +hen ne!essary to maintain the balan!e of e6!hange ratesI ensure that finan!ial institutions are properly supervised and mar,ets by the national authorities and the

payment systems fun!tioning properlyI authori9e the !entral ban,s of the euro area !ountries to issue ban,notesI monitors pri!e trends and assessing the ris, that it might pose to the stability of the euro area. The ECF de!isionma,ing

bodies of the follo+ing* T#e E4e($t!6e C%,,!ttee manages the daily a!tivity. 't !onsists of members appointed by euro 9one leaders for a term of 8 years. G%6ern!n" C%$n(! shall formulate the monetary poli!y of the euro9one and sets interest rates at +hi!h !ommer!ial

ban,s !an obtain money from the Central Fan,. 't !onsists of members of the E6e!utive Foard and the overnors of the

18 !entral ban,s of the euro area. T#e Gener C%$n(! !ontributes to the a!tions of the ECF for !onsultation and !oordination and provide support to!ountries preparing to oin the euro area. 't !omprises the "resident and 0i!e"resident of the ECF and !entral ban, governors of all 28 member states. The ECF is an independent institution. @either the ECF nor the national !entral ban,sof the Eurosystem and no member of the !ourt responsible de!isions !an not as, for or a!!ept instru!tions from any other

body. All EU institutions and national governmentsmust respe!t this prin!iple.E$r%&en E(%n%,!( nd S%(! C%,,!ttee 8EESC: representatives of employers( employees and other interest groups!an e6press their vie+s on EU a!tions by European E!onomi! and o!ial Committee. This is a !onsultative assembly+hi!h issue opinions to the larger institutions espe!ially the Coun!il( Commission and European "arliament. EuropeanE!onomi! and o!ial Committee +as established in 1)5# as a forum for dis!ussion on issues related to the single mar,et.The EEC gives lobbyists in Europe unions( employers( farmers the opportunity to formally e6press about the

proposed EU la+s. The role of the Committee is*

to advise the Coun!il and the CommissionJs de!isionma,ing pro!essI to ensure greater involvement of !ivil so!iety in the European initiative and promote so!ial dialogueI to strengthen the role of !ivil so!iety organi9ations and asso!iations in nonmember !ountries of the EU. &n average(the Committee shall( annually( 1#$ advisory opinions and do!uments. All opinions are for+arded to the UnionJs de!isionma,ing bodies and then published in the &ffi!ial %ournal. The Committee !onsists of 353 members( representatives of e!onomi! and so!ial interest groups a!ross Europe. They are nominated by national governments and appointed by theEU Coun!il for a term of 5 years( rene+able. Committee members are not paid( but re!eive allo+an!es to !over their travel and a!!ommodation e6penses in!urred in attending meetings. The areas +here the Committee is !onsulted are* theinternal mar,et( edu!ation( !onsumer prote!tion( environment( regional development and so!ial affairs last on spe!ifi!issues( su!h as employment poli!y labor( publi! health( gender eBuality( and so on Also( the Committee may issueopinions on its o+n initiative. @i!e Treaty did not 4 !hanged the number and distribution of seats at CE( but has!larified the eligibility !riteria for membership.C%,,!ttee %) t#e Re"!%ns The Committee of the 7egions is a !onsultative body that represents lo!al and regional

authorities in the European Union. The role of the Committee of the 7egions is to raise a+areness of lo!al and regional

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points of vie+ on EU legislation. 'n this regard( the Committee issues reports on the Commission proposals.Commission( Coun!il and "arliament should !onsult the Committee before ta,ing de!isions in areas affe!ting lo!al andregional . C7 !onsists !urrently of 353 members from all 28 4ember tates. 4embers and alternates are appointed by the Coun!il( the

proposal home !ountries for a term of 5 years. Ea!h !ountry is free to set their o+n !riteria for appointing members butdelegations should refle!t a balan!ed distribution of politi!al( geographi!al and regional H lo!al. Committee members areele!ted members or sta,eholders +ithin lo!al and regional authorities in the area of origin. Committee of the 7egions

meets five times a year in plenary session( to define general politi!al guidelines and to adopt opinions. There are si6J!ommissionsJ to deal +ith the different poli!y areas and prepare the opinions to be debated in sessions plenare1* Territorial !ohesionI E!onomi! and o!ial "oli!yI Edu!ation( Pouth and CultureI Environment( Climate Change and EnergyI Citi9enship( overnan!e( 'nstitutional and E6ternal AffairsI @atural resour!es. C7 a!tivity refle!ts three basi! prin!iples of EU a!tivity*1> the subsidiarity prin!iple* the EU should not ta,e on tas,s +hi!h are better suited to national( regional or lo!alI2> the pro6imity prin!iple* all levels of government should aim to bring !iti9ens !loser through a proper organi9ation of their +or,I3> the partnership prin!iple* !ollaboration and involvement in de!isionma,ing authorities at European( national( regionaland lo!al level( to a!hieve a strong European governan!e. Under the isbon Treaty( the European Commission is obliged

to !onsult +ith lo!al and regional authorities and their asso!iations as early as possible in the prelegislative stage.Committee of the 7egions( as the mouthpie!e for lo!al and regional authorities( is deeply involved in this pro!edure.&n!e you submit a legislative proposal( the Commission must !onsult again +ith the Committee( if that proposal aimed atone of the poli!y areas +ith dire!t impa!t on lo!al and regional authorities.E$r%&en E4tern A(t!%n Ser6!(e 8EEAS: European E6ternal A!tion ervi!e shall assist the H!"# Re&resentt!6e %) t#e Un!%n )%r F%re!"n A))!rs nd Se($r!t- P%!(-9 &%st #e #ed )%r Feder!( M%"#er!n! . This leads the oreignAffairs Coun!il and outlines poli!y dire!tion oreign and e!urity "oli!y( ensuring at the same time( !onsisten!y and!oordination of a!tions underta,en by the EU e6ternally.European 'nvestment Fan,


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operations outside the Union and ma,ing de!isions on !apital in!reases. The Foard of overnors appoints the membersof the Foard of ;ire!tors( of the 4anagement Committee and the Audit Committee.E$r%&en O,7$ds,nEuropean &mbudsman is eBuivalent to an Advo!ate "eople at Community level( and is appointed by"arliament for a term of five years. The European &mbudsman investigates !omplaints from !iti9ens( businesses andorgani9ations in the EU +ho report !ases of maladministration in the institutions( bodies( offi!es or agen!ies infringements( failure to !omply +ith the prin!iples of good governan!e( human rights abuses. &ffi!e of the &mbudsman

!arries out investigations after re!eiving a !omplaint or on its o+n initiative. As an independent body( it does not supportany intervention by governments or other entities. &n!e a year( +e shall present a report to the European "arliament.Complaints visKvis the dissatisfa!tion a!tivity !arried out by an institution( body( offi!e or agen!y of the EU( it must besubmitted to the &mbudsman +ithin t+o years of the date on +hi!h it +as found maladministration. The !omplaint must

be spe!ified from +hom a !omplaint is re!eived ( the institution or bodyagainst +hi!h the !omplaint and the problem is. :o+ever( the &mbudsman !an not investigate* !omplaints against national( regional or lo!al authorities in 4ember tates ( even +hen the !omplaints aimed at European issuesI tribunals or bodies a!tivities of e6isting national ombudsman. European &mbudsman re!eives reBuests for appeal of de!isions ta,en by these entitiesI !omplaints against businesses or individuals. 't is possible that the &mbudsman !an solve the problem simply byinforming the institution( body( offi!e or agen!y !on!erned. 'f you need more( try to find an ami!able solution( leading toremedy the situation reported. 'f they fail( the &mbudsman !an ma,e re!ommendations to the institution !on!erned. 'f it

does not a!!ept the re!ommendations( it !an ma,e a spe!ial report to the attention of "arliament( be!ause it !an ta,e thene!essary politi!al steps. 'f you !an not e6amine the !omplaint ( the &mbudsman strives to identify the body +hi!h !an help EU !iti9en.T#e E$r%&en Dt Pr%te(t!%n S$&er6!s%rThe position of European ;ata "rote!tion Authority +as !reated in 2$$1. The responsibilities of the Authority are toensure that EU institutions and bodies respe!t the right to priva!y +hen pro!essing personal data. =hen pro!essing

personal data about a person +ho !an be identified( EU institutions and bodies are obliged to respe!t the priva!y of the person !on!erned. The Authority shall ensure that this happens. J"ro!essingJ !overs a!tivities su!h as !olle!ting data(re!ording and storing them( retrieving them for !onsultation( sending them available to other people( blo!,ing( erasure or destru!tion.There are stri!t rules regarding priva!y( +hi!h apply to these a!tivities. or e6ample( in general( EU institutions and

bodies are not allo+ed to pro!ess personal data that !ommuni!ate information about ra!ial or ethni! origin( politi!alopinions( religious or philosophi!al beliefs or trade union membership. The authority is +or,ing +ith offi!ials in !harge

of data prote!tion in ea!h EU institution or body to ensure that the rules on priva!y.P$7!(t!%ns O))!(eEU "ubli!ations &ffi!e is an interinstitutional body't aims to provide editing the publi!ations of the EU institutions( ina!!ordan!e +ith Coun!il ;e!ision 2$$)H) H EC( Euratom. "ubli!ations &ffi!e responsible for the daily appearan!e of the &ffi!ial %ournal of the European Union in 23 languages .T#e E$r%&en Pers%nne See(t!%n O))!(eThe European "ersonnel ele!tion &ffi!e


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;. European 'nstitute of 'nnovation and Te!hnology ter, %ns )%r(&!t !n6est,ent &r%,%t!n" t#e Un!%ns 7n(ed e(%n%,!( de6e%&,ent nd !nte"rt!%n . The E'F is a fle6ibleand !osteffe!tive sour!e of finan!e +hose ECU 2 billion volume of annual lending ma,es it the largest of theinternational finan!ing institutions in the +orld. 'n the European Union( E'F loans go to proe!ts( +hi!h fulfill one or more of the follo+ing obe!tives*

trengthening e!onomi! progress in the lessfavored regionsI 'mproving transEuropean net+or,s in transport( tele!ommuni!ations and energy transferI Enhan!ing industryJs international !ompetitiveness and its integration at a Europeanlevel and supporting small and mediumsi9ed enterprisesI "rote!ting the environment and Buality of life( promoting urban development and safeguarding the EUJs

ar!hite!tural heritageI A!hieving se!ure energy suppliesI E6tending and moderni9ing infrastru!ture in the health and edu!ation se!tors as +ell as assisting urban rene+al(under the JAmsterdam spe!ial a!tion programme in support of gro+th and employment.

The Fan, !arries out a rigorous appraisal of ea!h investment proe!t( not only assessing its !onsisten!y+ith EU poli!ies but also vetting its e!onomi! and environmental ustifi!ation as +ell as its finan!ial andte!hni!al viability.

The E'F is not a ban, in +hi!h people deposit their money( but it is a ban,( +hi!h pays a Buality of lifedividend for millions of !iti9ens. Underpinning regional development is the Fan,Js priority tas, and t+o thirds of its total lending is advan!ed for produ!tive investment in regions( +hi!h are lagging behind or fa!ing industrialde!line.

The dire!t benefits of E'F lending a!tivities to the !iti9ens have in!luded ne+ !ompanies( more obs( better !ommuni!ations and improved environmental prote!tion. oans are not allo!ated a!!ording to any system

of Buotas. They are determined by poli!y priorities and the demands of e!onomi! operators.The ElFJs finan!ing for regional development often goes hand in hand +ith grants from the EUJstru!tural unds and Cohesion und. Ensuring that loans and grants are !omplementary brings the Fan, into!lose !ollaboration +ith the Commission( and involves it in the preparation and implementation of stru!turalsupport programmes.

The Union is !ommitted to a strategy for strengthening the e!onomies of 4ember tates( their !ompetitiveness and their !apa!ities to !reate ne+ obs. 'n pursuit of these aims( the European Coun!il at itsre!ent meetings !alled on the Fan, to play a maor role in the UnionJs e!onomi! integration in the runup toe!onomi! and monetary union .

To this end( the E'F !hannels a large amount of its finan!ing to+ards lessfavoured regions.Complementing the efforts of the 4ember tates and the EU to further a balan!ed e!onomi! development. TheE'F also fo!uses its lending on basi! infrastru!ture se!tors and transEuropean net+or,s in transport(tele!ommuni!ations and energy transfer( paying parti!ular attention to the lin,ing of neighboring regions +ith the

European Union. Espe!ially in Central and Eastern Europe. 'n 1))# the ban, laun!hed its threeyear Amsterdamspe!ial a!tion programme


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of E'F loans( and in the 7epubli! of outh Afri!aI• 'n finan!ing proe!ts of mutual interest in su!h areas as te!hnology transfer( oint ventures and

environmental prote!tion in Asian and atin Ameri!an !ountries +hi!h have signed !ooperationagreements +ith the E;.

"roe!ts supported by E'F loans !arry the lightest possible interest rate burden. The Fan, obtains the bul, of its resour!es on the !apital mar,ets +here its top !redit rating enables it to borro+ on the best termsavailable and to pass on the benefit to proe!t promoters.

As a maor presen!e on the !apital mar,ets X raising over ECU 23 billion in 21 !urren!ies in 1))# X the E'F plays an

eei.eng.ultima varianta a cartii.doc

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