european unions

8/19/2019 European unions

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UNIVERSITY OF MUMBAI

RAYAT SHIKSHAN SANSTHA’S

KARMAVEER BHAURAO PATIL COLLEGEVASHI, NAVI MUMBAI

COLLEGE CODE – 33

PROJECT REPORT

ON

‘’EUROPEAN UNION AND ITS ACHIVEMENTS”

SUBMITTED BY

GAUTAMI .J.KOLI

PROJECT GUIDE

D.G Man!"a#

IN PARTIAL FULFILLMENT FOR THE COURSE OF

MASTER OF COMMERCE

M.COM.PART – I $SEMESTER I%

ACADEMIC YEAR 2014-15


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Ta&!' ( )n*'n*+

Table of Contents

ACKNOWLEGEMENT!

DECLARATION4

CERTIFICATE"

INTRODUCTION"

HISTORY#

GEOGRAPHY$

MEMBER STATES10

POLITICS11

GOVERNANCE12

THE EUROPEAN PARLIAMENT12

THE COUNCIL OF THE EUROPEAN UNION1!

THE EUROPEAN COMMISSION14

THE EUROPEAN COUNCIL15

THE EUROPEAN CENTRAL BANK1"

THE COURT OF %USTICE OF THE EUROPEAN UNION1&

THE EUROPEAN COURT OF AUDITORS1$

OTHER BODIES20

BUDGET21

COMPETENCES22

IMPORTANT POLICIES OF EU2!

ACHIEVEMENTS OF THE EU25

BIBLIOGRAPHY!2


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ACKNOWLEGEMENT

On the occasion of completion and submission of project we would like to express our deep sense of gratitude to Mr. D.G Man!"a# for providing us platform of economicstudies. We thank to our chairman and faculty members for their moral support during

the project.

We are glad for providing us an opportunity to carryout project on European Union and

also their help and tips whenever needed. Without his cooperation it was impossible to

reach up this stage.

!t last" # sincere regards to my parents and friends who have directly or indirectly

helped me in the project.

DECLARATION


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I, GAUTAMI % KOLI '()*+( . KARMAVEER BHAURAO PATIL

COLLEGE, '()*/ M.C,.Pa#*-I. $S','+*'# I% +3+/ *+673+ (7( I 78+

9:6+(+* (' :3;+( 3+:3( 73* . 7/ *+3++, *:697 +( T+ .397( ' ')9((+* (

9+ ' (3)+ 7* 376 ( (+ +'( . 9/ ?>6+*+


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RAYAT SHIKSHAN SANSTHA’SKARMAVEER BHAURAO PATIL COLLEGE

VASHI, NAVI MUMBAI 400 #0!

CERTIFICATE

T' ' ( +3(./ (7( GAUTAMI KOLI, '()*+( . MC9P73(-I S+9+'(+3 I 7'

9:6+(+* ' :3;+(


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of supranational independent institutions and intergovernmental negotiated decisions by

the member states. #nstitutions of the EU include the European )ommission"

the )ouncil of the European Union" the European )ouncil" the )ourt of *ustice of the

European Union" the European )entral +ank" the )ourt of !uditors" and the European

,arliament..

$he EU traces its origins from the European )oal and -teel )ommunity %E)-)& and

the European Economic )ommunity %EE)&" formed by the #nner -ix countries in /0

and /0(" respectively. $he latest major amendment to the constitutional basis of the

EU" the $reaty of 1isbon" came into force in '22/.

$he EU has developed a single market through a standardi3ed system of laws that

apply in all member states. EU policies aim to ensure the capital" enact legislation in

justice and home affairs" and maintain common policies on trade" agriculture" fisheries"

and regional development.

$he monetary union was established in /// and came into full force in '22'. #t is

currently composed of ( member states that use the euro as their legal tender.

$hrough the )ommon 4oreign and -ecurity ,olicy" the EU has developed a role

in external relations and defense. $he union maintains permanent diplomaticmissions throughout the world and represents itself at the United" the W$O" the 5(" and

the 5'2.

With a combined population of over 022 million inhabitants" or 6.78 of the world

population" the EU in '2' generated a nominal gross domestic product %59,& of

:.0(; trillion U- dollars" constituting approximately '78 of global nominal 59, and

'28 when measured in terms of purchasing power parity" which is the largest economy

by nominal 59, and the second largest economy by 59, %,,,& in the world. #n '2'"

the EU was awarded the


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!fter World War II" moves towards European integration were seen by many as an

escape from the extreme forms of nationalism that had devastated the continent. /0'

saw the creation of the European )oal and -teel )ommunity" which was declared to be

=a first step in the federation of Europe=" starting with the aim of eliminating the

possibility of further wars between its member states by means of pooling the national

heavy industries. $he founding members of the )ommunity

were +elgium" 4rance" #taly" 1uxembourg" the


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//0" !ustria" 4inland" and -weden joined the EU. #n '22'" euro banknotes and coins

replaced national currencies in ' of the member states. -ince then" the euro3one has

increased to encompass ( countries. #n '22;" the EU saw its biggest enlargement to

date when )yprus" the )3ech

>epublic" Estonia" ?ungary" 1atvia"1ithuania" Malta" ,oland" -lovakia"

and -lovenia joined the Union. On *anuary '226" >omania and +ulgaria became EU

members. #n the same year" -loveniaadopted the euro"D; followed in '22(

by )yprus and Malta" by -lovakia in '22/" by Estonia in '2 and by 1atvia in '2;. On

9ecember '22/" the 1isbon $reaty entered into force and reformed many aspects of

the EU. $he European Union received the '2'


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metres%0"6(' ft& above sea level. $he lowest point%s& in the EU is 9enmark

and


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$hrough successive enlargements" the Union has grown from the six founding states B

+elgium" 4rance" West 5ermany" #taly" 1uxembourg" and the


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GOVERNANCE

$he European Union has seven institutionsH• $he European ,arliament"

• $he )ouncil of the European Union"

• $he European )ommission"

• $he European )ouncil"

• $he European )entral +ank"

• $he )ourt of *ustice of the European Union and

• $he European )ourt of !uditors.

)ompetencies in scrutini3ing and amending legislation are divided between the

European ,arliament and the )ouncil of the European Union while executive tasks are

carried out by the European )ommission and in a limited capacity by the European

)ouncil %not to be confused with the aforementioned )ouncil of the European Union&.

$he monetary policy of the euro3one is governed by the European )entral +ank. $he

interpretation and the application of EU law and the treaties are ensured by the )ourt of

*ustice of the European Union. $he EU budget is scrutini3ed by the European )ourt of

!uditors. $here are also a number of ancillary bodies which advise the EU or operate in

a specific area.Each of these instituations is given clearly defined powers and responsibilities.

9emocracy and rule of law are the cornerstones of the structure of EU.

THE EUROPEAN PARLIAMENT

$he European ,arliament forms one half of the EUFs legislature %the other half is the

)ouncil of the European Union" see below&. $he 67: %soon to be 60& Members of the

European ,arliament %ME,s& are directly elected by EU citi3ens every five years on the

basis of proportional representation. !lthough ME,s are elected on a national basis"

they sit according to political groups rather than their nationality. Each country has a set

number of seats and is divided into subnational constituencies where this does not

http://en.wikipedia.org/wiki/European_Parliamenthttp://en.wikipedia.org/wiki/Council_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/European_Councilhttp://en.wikipedia.org/wiki/European_Central_Bankhttp://en.wikipedia.org/wiki/Court_of_Justice_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Court_of_Auditorshttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/European_Central_Bankhttp://en.wikipedia.org/wiki/European_Parliamenthttp://en.wikipedia.org/wiki/Legislature_of_the_European_Unionhttp://en.wikipedia.org/wiki/Member_of_the_European_Parliamenthttp://en.wikipedia.org/wiki/Member_of_the_European_Parliamenthttp://en.wikipedia.org/wiki/Elections_in_the_European_Unionhttp://en.wikipedia.org/wiki/Citizenship_of_the_European_Unionhttp://en.wikipedia.org/wiki/Proportional_representationhttp://en.wikipedia.org/wiki/Political_groups_of_the_European_Parliamenthttp://en.wikipedia.org/wiki/European_Parliament_constituencyhttp://en.wikipedia.org/wiki/European_Parliamenthttp://en.wikipedia.org/wiki/Council_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/European_Councilhttp://en.wikipedia.org/wiki/European_Central_Bankhttp://en.wikipedia.org/wiki/Court_of_Justice_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Court_of_Auditorshttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/European_Central_Bankhttp://en.wikipedia.org/wiki/European_Parliamenthttp://en.wikipedia.org/wiki/Legislature_of_the_European_Unionhttp://en.wikipedia.org/wiki/Member_of_the_European_Parliamenthttp://en.wikipedia.org/wiki/Member_of_the_European_Parliamenthttp://en.wikipedia.org/wiki/Elections_in_the_European_Unionhttp://en.wikipedia.org/wiki/Citizenship_of_the_European_Unionhttp://en.wikipedia.org/wiki/Proportional_representationhttp://en.wikipedia.org/wiki/Political_groups_of_the_European_Parliamenthttp://en.wikipedia.org/wiki/European_Parliament_constituency


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affect the proportional nature of the voting system. $he ,resident of the European

,arliament carries out the role of speaker in parliament and represents it externally. $he

E, ,resident and Iice,residents are elected by ME,s every two and a half years.

#mportant functions of the parliament areH

• -hare with European council the power to legislate i.e to adopt European laws

%directives" regulations or decisions&

• -hares budgetary authority with council and also adopts the budget in its entirety

• Exercises democractic supervision over the commission.

• !pproves the nomination of commissioners and has the right to censure the

commission and also exercise political supervision over all the instituitions.

THE COUNCIL OF THE EUROPEAN UNION

$he )ouncil of the European Union %also called the =)ouncil= and sometimes referred to

as the =)ouncil of Ministers=& forms the other half of the EUFs legislature. #t consists of

a government minister from each member state and meets in different compositionsdepending on the policy area being addressed.


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• #t is the European unionsJ legislative bodyA for a wide range of EU issues" it

exercise that legislative power in codecision with the European parliament.

• #t coordinates the broad economic policies of the member states.

• #t concludes on behalf of the EU" international agreements with one or more

states or international organi3ations.• -hares budgetary authority with European parliament.

• $akes the decision necessary for framing and implementing the common foreign

and security policy" on the basis of general guidelines established by the

European council.

• #t coordinates the activities of members states and adopts measures in the field

of police and judicial cooperation in criminal matters.

THE EUROPEAN COMMISSION

$he European )ommission acts as the EUFs executive arm and is responsible

for initiating legislation and the daytoday running of the EU. $he )ommission is also

seen as the motor of European integration. #t operates as a cabinet government" with

'( )ommissioners for different areas of policy" one from each member state" though

)ommissioners are bound to represent the interests of the EU as a whole rather than

their home state. One of the '( is the )ommission ,resident appointed by

the European )ouncil. !fter the ,resident" the most prominent )ommissioner is

the ?igh >epresentative of the Union for 4oreign !ffairs and -ecurity ,olicy who is ex-

officio Iice,resident of the )ommission and is chosen by the European )ouncil too.

http://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/Executive_(government)http://en.wikipedia.org/wiki/Right_of_initiative_(legislative)http://en.wikipedia.org/wiki/European_integrationhttp://en.wikipedia.org/wiki/Cabinet_(government)http://en.wikipedia.org/wiki/European_Commissionerhttp://en.wikipedia.org/wiki/President_of_the_European_Commissionhttp://en.wikipedia.org/wiki/European_Councilhttp://en.wikipedia.org/wiki/High_Representative_of_the_Union_for_Foreign_Affairs_and_Security_Policyhttp://en.wikipedia.org/wiki/Vice-President_of_the_European_Commissionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/Executive_(government)http://en.wikipedia.org/wiki/Right_of_initiative_(legislative)http://en.wikipedia.org/wiki/European_integrationhttp://en.wikipedia.org/wiki/Cabinet_(government)http://en.wikipedia.org/wiki/European_Commissionerhttp://en.wikipedia.org/wiki/President_of_the_European_Commissionhttp://en.wikipedia.org/wiki/European_Councilhttp://en.wikipedia.org/wiki/High_Representative_of_the_Union_for_Foreign_Affairs_and_Security_Policyhttp://en.wikipedia.org/wiki/Vice-President_of_the_European_Commission


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$he other ': )ommissioners are subseGuently appointed by the )ouncil of the

European Union in agreement with the nominated ,resident. $he '( )ommissioners as

a single body are subject to a vote of approval by the European ,arliament.

$he main functions areH

• ?as the right to initiate draft legislation and therefore presents legislative

proposals to parliament and the council.

• >esponsible for implementing the directives" regulations" decisions" budget and

programme adopted by parliament and the council.

• !cts as guardian of the treaties and together with the court of justices" ensures

that community law is properly applied.

• >epresents the EU on the international stage and negotiates international

agreements" chiefly in the field of trade and cooperation.

THE EUROPEAN COUNCIL

$he European Council is the institution of the European Union %EU& that comprises

the heads of state or government of the member states" along with the councilFs own

president and the president of the )ommission. $he ?igh >epresentative of the Union

for 4oreign !ffairs and -ecurity ,olicy also takes part in its meetings. Established as an

informal body in /60" the council was formali3ed as an institution in '22/ upon the

entry into force of the $reaty of 1isbon.

$he meetings of the European )ouncil" commonly referred to as EU summits" are

chaired by its president and take place at least twice every six monthsA usually in

http://en.wikipedia.org/wiki/Council_of_the_European_Unionhttp://en.wikipedia.org/wiki/Council_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Parliamenthttp://en.wikipedia.org/wiki/European_Councilhttp://en.wikipedia.org/wiki/Institution_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Head_of_statehttp://en.wikipedia.org/wiki/Head_of_governmenthttp://en.wikipedia.org/wiki/Member_state_of_the_European_Unionhttp://en.wikipedia.org/wiki/President_of_the_European_Councilhttp://en.wikipedia.org/wiki/President_of_the_European_Councilhttp://en.wikipedia.org/wiki/President_of_the_European_Commissionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/High_Representative_of_the_Union_for_Foreign_Affairs_and_Security_Policyhttp://en.wikipedia.org/wiki/High_Representative_of_the_Union_for_Foreign_Affairs_and_Security_Policyhttp://en.wikipedia.org/wiki/European_Council#cite_note-seeToL-1http://en.wikipedia.org/wiki/Treaty_of_Lisbonhttp://en.wikipedia.org/wiki/EU_summithttp://en.wikipedia.org/wiki/Council_of_the_European_Unionhttp://en.wikipedia.org/wiki/Council_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Parliamenthttp://en.wikipedia.org/wiki/European_Councilhttp://en.wikipedia.org/wiki/Institution_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Head_of_statehttp://en.wikipedia.org/wiki/Head_of_governmenthttp://en.wikipedia.org/wiki/Member_state_of_the_European_Unionhttp://en.wikipedia.org/wiki/President_of_the_European_Councilhttp://en.wikipedia.org/wiki/President_of_the_European_Councilhttp://en.wikipedia.org/wiki/President_of_the_European_Commissionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/High_Representative_of_the_Union_for_Foreign_Affairs_and_Security_Policyhttp://en.wikipedia.org/wiki/High_Representative_of_the_Union_for_Foreign_Affairs_and_Security_Policyhttp://en.wikipedia.org/wiki/European_Council#cite_note-seeToL-1http://en.wikipedia.org/wiki/Treaty_of_Lisbonhttp://en.wikipedia.org/wiki/EU_summit


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the *ustus 1ipsius building" the headGuarters of the )ouncil of the European Union in

+russels.

9ecisions of the European )ouncil are taken by consensus" except where the $reaties

provide otherwise.


• gathers the executive power of the member states and has thus a great influence

in high profile policy areas

• exercises powers of appointment" such as appointment of its own ,resident"

the ?igh >epresentative of the Union for 4oreign !ffairs and -ecurity ,olicy " and

the ,resident of the European )entral +ank.

• influences police and justice planning" the composition of the )ommission"

matters relating to the organisation of the rotating )ouncil presidency" the

suspension of membership rights" and changing the voting systems

THE EUROPEAN CENTRAL BANK

$he European Central Bank %ECB& is the central bank for the euro and

administers monetary policy of the Euro3one" which consists of ( EU member

states and is one of the largest currency areas in the world. #t is one of the worldFs most

important central banks and is one of the seven institutions of the European Union %EU&

listed in the $reaty on European Union %$EU&. $he capital stock of the bank is owned by

the central banks of all '( EU member states. $he $reaty of !msterdam established the

http://en.wikipedia.org/wiki/Justus_Lipsius_buildinghttp://en.wikipedia.org/wiki/Council_of_the_European_Unionhttp://en.wikipedia.org/wiki/President_of_the_European_Councilhttp://en.wikipedia.org/wiki/High_Representative_of_the_Union_for_Foreign_Affairs_and_Security_Policyhttp://en.wikipedia.org/wiki/President_of_the_European_Central_Bankhttp://en.wikipedia.org/wiki/European_Central_Bankhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/Member_state_of_the_European_Unionhttp://en.wikipedia.org/wiki/Member_state_of_the_European_Unionhttp://en.wikipedia.org/wiki/Institutions_of_the_European_Unionhttp://en.wikipedia.org/wiki/Treaty_on_European_Unionhttp://en.wikipedia.org/wiki/Treaty_of_Amsterdamhttp://en.wikipedia.org/wiki/Justus_Lipsius_buildinghttp://en.wikipedia.org/wiki/Council_of_the_European_Unionhttp://en.wikipedia.org/wiki/President_of_the_European_Councilhttp://en.wikipedia.org/wiki/High_Representative_of_the_Union_for_Foreign_Affairs_and_Security_Policyhttp://en.wikipedia.org/wiki/President_of_the_European_Central_Bankhttp://en.wikipedia.org/wiki/European_Central_Bankhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/Member_state_of_the_European_Unionhttp://en.wikipedia.org/wiki/Member_state_of_the_European_Unionhttp://en.wikipedia.org/wiki/Institutions_of_the_European_Unionhttp://en.wikipedia.org/wiki/Treaty_on_European_Unionhttp://en.wikipedia.org/wiki/Treaty_of_Amsterdam


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bank in //(" and it is headGuartered in 4rankfurt" 5ermany. !s of '2 the ,resident of

the E)+ is Mario 9raghi" former governor of the +ank of #taly. $he bank currently

occupies the Eurotower while new headGuarters are built. $he owners and shareholders

of the European )entral +ank are the central banks of the '( member states of the EU.

$he primary objective of the European )entral +ank" as mandated in !rticle ' of the

-tatute of the E)+"D' is to maintain price stability within the Euro3one. $he basic tasks"

as defined in !rticle 7 of the -tatute"D' are to define and implement the monetary

policy for the Euro3one" to conduct foreign exchange operations" to take care of

the foreign reserves of the European -ystem of )entral +anks and operation of the

financial market infrastructure under the $!>5E$' payments system and the technical

platform %currently being developed& for settlement of securities in Europe %$!>5E$'

-ecurities&. $he E)+ has" under !rticle : of its -tatute" the exclusive right to authorise

the issuance of euro banknotes. Member states can issue euro coins" but the amount

must be authorised by the E)+ beforehand %upon the introduction of the euro" the E)+

also had exclusive right to issue coins&.

THE COURT OF JUSTICE OF THE EUROPEAN UNION

$he Court of Justice of the European Union %CJEU& is the institution of the European

Union %EU& that encompasses the whole judiciary. -eated in 1uxembourg" 1uxembourg"

it consists of two major courts and a speciali3ed court.

$he )ourt of *ustice of the European Union consists of three courtsH

• $he Court of Justice" informally known as European Court of Justice %created

in in /0' as the )ourt of *ustice of the European )oal and -teel )ommunities"

http://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/President_of_the_European_Central_Bankhttp://en.wikipedia.org/wiki/Mario_Draghihttp://en.wikipedia.org/wiki/Banca_d'Italiahttp://en.wikipedia.org/wiki/Eurotower_(Frankfurt)http://en.wikipedia.org/wiki/European_Central_Bank_Headquartershttp://en.wikipedia.org/wiki/European_Central_Bank#cite_note-ecbst-2http://en.wikipedia.org/wiki/Price_stabilityhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/European_Central_Bank#cite_note-ecbst-2http://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Foreign_reservehttp://en.wikipedia.org/wiki/European_System_of_Central_Bankshttp://en.wikipedia.org/wiki/TARGET2http://en.wikipedia.org/wiki/TARGET2_Securitieshttp://en.wikipedia.org/wiki/TARGET2_Securitieshttp://en.wikipedia.org/wiki/Euro_banknoteshttp://en.wikipedia.org/wiki/Euro_coinshttp://en.wikipedia.org/wiki/Court_of_Justice_of_the_European_Unionhttp://en.wikipedia.org/wiki/Institutions_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Luxembourg_(city)http://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/European_Court_of_Justicehttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/President_of_the_European_Central_Bankhttp://en.wikipedia.org/wiki/Mario_Draghihttp://en.wikipedia.org/wiki/Banca_d'Italiahttp://en.wikipedia.org/wiki/Eurotower_(Frankfurt)http://en.wikipedia.org/wiki/European_Central_Bank_Headquartershttp://en.wikipedia.org/wiki/European_Central_Bank#cite_note-ecbst-2http://en.wikipedia.org/wiki/Price_stabilityhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/European_Central_Bank#cite_note-ecbst-2http://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Foreign_reservehttp://en.wikipedia.org/wiki/European_System_of_Central_Bankshttp://en.wikipedia.org/wiki/TARGET2http://en.wikipedia.org/wiki/TARGET2_Securitieshttp://en.wikipedia.org/wiki/TARGET2_Securitieshttp://en.wikipedia.org/wiki/Euro_banknoteshttp://en.wikipedia.org/wiki/Euro_coinshttp://en.wikipedia.org/wiki/Court_of_Justice_of_the_European_Unionhttp://en.wikipedia.org/wiki/Institutions_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Luxembourg_(city)http://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/European_Court_of_Justice


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later named )ourt of *ustice of the European )ommunities&" the highest court in the

EU legal systemA

• $he General Court %created in /((A formerly the Court of First Instance&A

#n addition a speciali3ed court existsH

• $he Civil ervice !ribunal" created in '22;.

$he institution was originally established in /0' as a single court called the Court of

Justice of the European Coal and teel Communities %as of /0( the Court of

Justice of the European Communities %CJEC&&. With the entry into force of the $reaty

of 1isbon in '22/" the court system obtained its current name %)ourt of *ustice of theEuropean Union&" while the court itself was renamed =)ourt of *ustice=.

#ts mission is to ensure that =the law is observed= =in the interpretation and application=

of the $reaties. $he )ourt reviews the legality of the acts of the institutions of the

European UnionA ensures that the Member -tates comply with obligations under the

$reatiesA and interprets European Union law at the reGuest of the national courts and

tribunals.

$he )ourt constitutes the judicial authority of the European Union and" in cooperation

with the courts and tribunals of the Member -tatesA it ensures the uniform application

and interpretation of European Union law.

THE EUROPEAN COURT OF AUDITORS

$he Court of "uditors %European )ourt of !uditors" E)!& is the fifth institution of

the European Union %EU&. #t was established in /60 in 1uxembourg to audit the

accounts of EU institutions. $he )ourt is composed of one member from each

http://en.wikipedia.org/wiki/General_Court_of_the_Court_of_Justice_of_the_European_Unionhttp://en.wikipedia.org/wiki/Civil_Service_Tribunal_of_the_Court_of_Justice_of_the_European_Unionhttp://en.wikipedia.org/wiki/Treaty_of_Lisbonhttp://en.wikipedia.org/wiki/Treaty_of_Lisbonhttp://en.wikipedia.org/wiki/European_Court_of_Auditorshttp://en.wikipedia.org/wiki/Institutions_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Luxembourg_(city)http://en.wikipedia.org/wiki/Audithttp://en.wikipedia.org/wiki/General_Court_of_the_Court_of_Justice_of_the_European_Unionhttp://en.wikipedia.org/wiki/Civil_Service_Tribunal_of_the_Court_of_Justice_of_the_European_Unionhttp://en.wikipedia.org/wiki/Treaty_of_Lisbonhttp://en.wikipedia.org/wiki/Treaty_of_Lisbonhttp://en.wikipedia.org/wiki/European_Court_of_Auditorshttp://en.wikipedia.org/wiki/Institutions_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Luxembourg_(city)http://en.wikipedia.org/wiki/Audit


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EU member state" one of whom is chosen to be its president. $he current president %as

of '2;& is IKtor Manuel da -ilva )aldeira.


• $he primary role of the court is to externally check if the budget of the European

Union has been implemented correctly" in that EU funds have been spent legally

and with sound management.• checks the paperwork of all persons handling any income or expenditure of the

Union and carries out spot checks.• $he )ourtFs decision is the basis for theEuropean )ommission decisions.• #t is based on this report that the ,arliament makes its decision on whether or not

to sign off theEuropean )ommissionFs handling of the budget for that year.• the )ourt must be consulted before the adoption of any legislation with financial

implications but the opinion is never binding. D;

OTHER BODIES

$here are a number of other bodies and agencies of note that are not formal institutions.

$here are two consultative committees to the EU institutionsH the Economic and -ocial

)ommittee %EE-)& advises on economic and social policy %principally relations between

workers and employers& being made up of representatives of various industries and

http://en.wikipedia.org/wiki/European_Union_member_statehttp://en.wikipedia.org/wiki/V%C3%ADtor_Manuel_da_Silva_Caldeirahttp://en.wikipedia.org/wiki/Budget_of_the_European_Unionhttp://en.wikipedia.org/wiki/Budget_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/European_Court_of_Auditors#cite_note-ENA_Consu-4http://en.wikipedia.org/wiki/Economic_and_Social_Committeehttp://en.wikipedia.org/wiki/Economic_and_Social_Committeehttp://en.wikipedia.org/wiki/European_Union_member_statehttp://en.wikipedia.org/wiki/V%C3%ADtor_Manuel_da_Silva_Caldeirahttp://en.wikipedia.org/wiki/Budget_of_the_European_Unionhttp://en.wikipedia.org/wiki/Budget_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/European_Court_of_Auditors#cite_note-ENA_Consu-4http://en.wikipedia.org/wiki/Economic_and_Social_Committeehttp://en.wikipedia.org/wiki/Economic_and_Social_Committee


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work sectors. #ts 7;; members %with an additional nine members joining following the

accession of )roatia to the EU&" appointed by the )ouncil for fouryear terms" are

organised into three fairly eGual groups representing employers" employees and other

various interestsAD' while the )ommittee of the >egions %)o>& is composed of

representative of regional and local authorities who hold an electoral mandate. #t

advises on regional issues. #t has 7;; members" organised in political groups"

appointed every four years by the )ouncil.D7 $he European #nvestment +ank is the

European UnionFs longterm lending institution. $he E#+ supports the EUJs priority

objectives" especially boosting sustainable growth and job creation. D;

$here are also three interinstitutional bodiesH the ,ublications Office" the oldest one"

which publishes and distributes official publications from the European Union bodiesAD0 and the two relatively newH the European ,ersonnel -election Office %E,-O&" a

recruitment body which organises competitions for posts within Union institutionsAD: and

the European !dministrative -chool" which provides specific training for the staff of

Union institutions.D6 !nother body is the antifraud office O1!4 whose mission is to

protect the financial interests of the European Union.D( $wo further posts areH

the European Ombudsman deals with citi3ens grievances against the UnionFs

institutions and is elected for fiveyear terms by the ,arliamentA D/ the European 9ata

,rotection -upervisor ensures the institutions respect citi3ensF privacy rights in relation

to data processing.

BUDGET

$he EU had an agreed budget of L'2.6 billion for the year '226 and L(:;.7 billion for

the period '226'27" representing .28 and .208 of the EU'6Fs 5


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estimated to be L60/ billion" and 4rance was estimated to have spent L(2 billion. #n

/:2" the budget of the then European Economic )ommunity was 2.278 of 59,.

#n the '22 budget of L;.0 billion" the largest single expenditure item is =cohesion N

competitiveness= with around ;08 of the total budget. ural development" environment and fisheries= takes

up around 8.=!dministration= accounts for around :8.$he =EU as a global partner=

and =citi3enship" freedom" security and justice= bring up the rear with approximately :8

and 8 respectively.

$he )ourt of !uditors aims to ensure that the budget of the European Union has been

properly accounted for. $he court provides an audit report for each financial year to the

)ouncil and the European ,arliament. $he ,arliament uses this to decide whether to

approve the )ommissionFs handling of the budget. $he )ourt also gives opinions and

proposals on financial legislation and antifraud actions.

$he )ourt of !uditors is legally obliged to provide the ,arliament and the )ouncil with =a

statement of assurance as to the reliability of the accounts and the legality and

regularity of the underlying transactions=.$he )ourt has refused to do so every year

since //7" Gualifying their report of the UnionFs accounts every year since then.

COMPETENCES

http://en.wikipedia.org/wiki/Structural_Funds_and_Cohesion_Fundhttp://en.wikipedia.org/wiki/Structural_Funds_and_Cohesion_Fundhttp://en.wikipedia.org/wiki/Common_Agricultural_Policyhttp://en.wikipedia.org/wiki/Common_Fisheries_Policyhttp://en.wikipedia.org/wiki/Court_of_Auditorshttp://en.wikipedia.org/wiki/Budget_of_the_European_Unionhttp://en.wikipedia.org/wiki/Structural_Funds_and_Cohesion_Fundhttp://en.wikipedia.org/wiki/Structural_Funds_and_Cohesion_Fundhttp://en.wikipedia.org/wiki/Common_Agricultural_Policyhttp://en.wikipedia.org/wiki/Common_Fisheries_Policyhttp://en.wikipedia.org/wiki/Court_of_Auditorshttp://en.wikipedia.org/wiki/Budget_of_the_European_Union


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EU member states retain all powers not explicitly handed to the European Union. #n

some areas the EU enjoys exclusive competence. $hese are areas in which member

states have renounced any capacity to enact legislation. #n other areas the EU and its

member states share the competence to legislate. While both can legislate" member

states can only legislate to the extent to which the EU has not. #n other policy areas the

EU can only coordinate" support and supplement member state action but cannot enact

legislation with the aim of harmoni3ing national laws.

$hat a particular policy area falls into a certain category of competence is not

necessarily indicative of what legislative procedure is used for enacting legislation within

that policy area. 9ifferent legislative procedures are used within the same category of

competence" and even with the same policy area.

$he distribution of competences in various policy areas is in between Member -tates

and the Union.

IMPORTANT POLICIES OF EU

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#n order to implement its aim and objectives" the EU has developed a number of specific

policies. -ome of the important policies of the EU are discussed belowH

• E#chan$e rate policyH $he EU aims aims at exchange rate stability in Europe

by limiting the fluctuations of participating currencies within the certain range.

• in$le marketH #t was originally inaugurated on *an " //7. )reation of single

or market reGuired not only the removal of customs and administrative barriers"

but also measures to harmonise product and services standards and to facilitate

the free movementof people and capital. -ingle market seeks to guarantee

freedoms" i.e" free movement of goods" capital" people and servies within the

area.

• !a# policyH #t remains the prerogative of the member states. $he EU aims at

eliminating tax induced distortions of competition within the EU. $hus" it has

focused on harmoni3ing value added and excise taxesH eliminating double

taxation of corporate profits" interest" and dividends and facilitating cross border

mergers and asset transfers.

• "$ricultural policyH $he EUJs agricultural policy has the objectives of increasing

agricultural production" providing certainly in food supplies" ensuring a highGuality of life to farmers" stabili3ing markets and ensuring reasonable prices for

customers.

• Industrial policyH $he industrial policy measures aim to help industry adjust to

structural change" to provide an environment conducive to business

development" to encourage cooperation between businesses and to encourage

industrial innovation and research and development. #t tries to improve the

international competitiveness of companies operating in the EU.

• Competition policyH #t is intended to ensure undistorted competition within the

single market. #t prohits agreements which lead to prevention " restriction or

distortion of competition within the common market.


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2!

• !ransport policyH #t aims to establish a single market for all forms of transport"

allowing free access to the market in each member state" and the creation of an

integrated transport system which is safe" reliable and environmentally

sustainable. !n efficient transport system is very important system is very

important system is very important for the free movement of goods and people.

• %onetary unionH $o bring about monetary union euro was launched in ///. !s

on *an '27" 6 out '( member states of European unions are using euro as

their sole official currency. $hese countries are !ustria" +elgium" )yprus" Estonia"

4inland" 4rance" 5ermany" 5reece" #reland" #taly" 1uxemburg" Malta" the


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• " common a$riculture policyH $he crisis which the agricultural sector passed

through after the -econd world war " the fear of an imbalance of the markets and

the problems social that met the rural populations explain the importance

attached to the agricultural sector by the $reaty of >ome. $he common

!gricultural policy %)!,&" was given like objectives to increase the productivity" to

ensure the EE) the safety of its provisioning" to stabili3e the markets of the food

goods" to consolidate the country income and to ensure of the reasonable

delivered prices the consumers. +y recogni3ing a strategic nature with the food

goods" the )!, organi3ed the agricultural markets on a certain number of

principlesH freedom of movement of the productsA common pricesA community

preference" implying taking away on the imports and of the export refundsA

financial solidarity of the member countriesA intervention on the markets by

purchases without Guantitative limitation. $he 4unds European of orientation and

agricultural guarantee %E!554& created in /:' became the financial instrument

of the )!,. $he )!, produced spectacular results" the )ommunity Guickly

managed to overcome its food shortage to reach a level of selfsufficiency" then

to export surpluses. #t ends up covering almost the totality of the agricultural

production. With the beginning of the year /(2.62 8 of the production %cereals"sugar" dairy products" olive oil" bovines& were safe from foreign competition and

profited from constant pricesA '0 8 of the production %poultries" eggs" porcine"

wines" flowers" fruit and vegetables& were protected by customs duties or levies

on the importsA 0 8 of the production %col3a" flax" sunflower" cotton" tobacco&

received direct aids. ?owever" the )!, managed to prevent neither the rural

depopulation of the small farmers" neither the decline of certain agricultural areas

%mountainous areas in particular&" nor the ineGuality of treatment of the products.

#n fact" it appeared in years /(2 that the guarantees without limits exerted

differential effects on European agricultureH they supported especially the large

owners who could increase their production capacity by an easier access on the

ground" the appropriations and the eGuipment. +etween /67 and /((" the

agricultural production of the EE) increased by ' 8 per year" whereas


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consumption increased only by 2.0 8. $he surpluses thus released involved a

sectoral devaluation of the courses. 9uring this time" the multiplication of the

agreements agricultural preferential" bilateral or multilateral" last with third

countries largely opened the European market with exports. #n '227" from the

point of view of the widening of the Union to the countries of Eastern Europe"

which was going to involve an increase of ;2 8 of agricultural surface" a vast

reform of the )!, was undertaken" which modified the methods of financing of

the agricultural sector. $his reform" which insisted on the competitiveness of the

farmers in their in particular reGuiring to produce according to the reGuirements of

the market" envisaged the decoupling of direct aids" i.e. it installed a single

system of payment at the exploitations isolating the subsidies from volumes of

production.

• Industrial initiatives& $he completion of the interior market and the persistent

problem of unemployment also stimulated the common industrial policy in a

considerable way. $he treaty of Maastricht was to provide a legal base to the

)ommunity industrial policy aiming at improving competitiveness of European

industry and" by the same one" the employment picture. #n short" this industrial

policy is based on political measures social and regional %when the conversion of

industry generates social situations and regional unacceptable" as it was the

case in 1orraine for example&A on the development of a policy of European

technological researchA and to political measures commercial external

%antidumping measurements" trade agreements applying to certain sectors&. $he

agreement of *uly // on the *apanese cars illustrates this last point wellH

following the negotiations" *apan had to accept that its market share European

does not exceed : 8 in ///. #t moreover was envisaged one safeguard

clause" which made it possible to slow down the sales in the event of crisis of theEuropean market and a clause of nottargetingP" by which *apan was committed

to distribute its sales on several countries and not concerting them on only one.

• 'e$ional disparities& -tudies of the )ommission of +russels reveal that the

process of convergence inside the EE) was stopped during the years /62. $he


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2"

customs union" by supporting the concentration of the powers" spaces and the

infrastructures" reinforced the richest areas. #n /(2" ,#+Qh. of the ten poorest

areas reached 7' 8 of that of the most developed areasA in /((" it represented

nothing any more but '/ 8 of them.$he disparities touch with the economic

structure" the standard of living" the operation of the social systems. $he

divergences in rates of saving and unemployment rate" in the formation of the

capital and consumption" in the distribution of employment reflect fundamental

imbalances. $o introduce elements correct into this process" of the instruments"

known under the name of structural basesP" were created as of the middle of the

years /62. !mong them" European regional development fund %4E9E>&" which"

with the coming into effect of the treaty of Maastricht" became the principal

)ommunity tool for correction of regional disparities" while taking part in the

development and the structural adjustment of these areas" with the promotion of

the rural development" like the reconversion of the declining industrial areas. $he

)ommunity initiatives %//;///& envisaged by the budget within the framework

of structural bases had milked with six sectorsH the interregional cooperation

%program #>E5" which encouraged the transborder cooperation between

areas located at the internal borders and external of the Member -tates" in the

fields of transport" telecommunication" -ME" tourism" teaching" the linguisticformation" fittingout and health&A use and the laborA the industrial development

%with in particular program @O which encouraged the reconversion of the

industry of the armament to economic activities concerned with the civil sector&A

the areas ultraperipheralsA the urban policy %program U>+!&. $he assistance of the )ommunity" though

always subordinated to a cofinancing by the local authorities" could however rise

up to 60 8 of the total costs of a project.

• Introduction of sin$le currency the euro& #t must be held in several phases of

*anuary st" /// on *uly st" '22'. $he institutions" European -ystem of central

banks %-E+)& and the European )entral bank function since *anuary st" ///

and they have as a function essential to lay down and carry out the single

monetary policy in euros.On *anuary st ///" the euro became the European


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single currency. $he parities between the currencies of the participating

countries" like their parity compared to the euro" were definitively fixed. $he

transactions in national currencies remained possible and they only circulated.

$he -tock Exchange on the other hand functioned in euros. +ut until '22'" the

companies had neither the obligation" nor prohibition to carry out their operations

in euros. On *anuary st" '22'" parts and tickets euros entered in circulation. On

*uly st" '22' %on on 4ebruary 6th" '22' in 4rance&" the tickets and parts in

national currencies will be withdrawn and only the tickets and parts in euros will

have from now on legal tender.

• " common commercial policy& $he European Union is a commercial power

whose exports %other than the trade intraEU&" represented in '22' / 8 of the

world exports %in front of the United -tates" ; 8&" for a value of /7/.( billion

dollars %E. U.H :/7./&" and ( 8 of the world imports" behind the United -tates

%'7.' 8&" for a value of /77. billion dollars %E. U.H '2'.;&. #ts principal

business partners are the United -tates" *apan" )hina and )anada.$he

)ommunity however found itself on the bolster during the multilateral trade

negotiations which opened in /(: in ,unta del Este within the framework of

5!$$ %5eneral !greement on $ariffs and $rade&" which aims at liberali3ing the

world exchanges gradually. $hese negotiations related to the subsidies to the

agricultural produce" the trade of the services" the multifibre agreement on the

textile and the property rights industrial. $he United -tates and the principal

agricultural exporting countries claimed the suppression of any support for the

prices" in order to eGuali3e the conditions of the offer for the exporters worldwide.

$he )!, was directly aimed" insofar as" until the years //7//;" it remained

essentially centered on the price maintenance. $he )ommunity principle even of

the organi3ation of the markets was strongly disputed. European side" onepointed out that two thirds of the agricultural grants are versed in the forms of

direct aids to the income" making it possible to the !merican producer to lower

his prices on levels even lower than the production costs. )onseGuently" an

international negotiation on the level of the subsidies was to take into account all

the forms of assistances" direct or indirect" apparent or dissimulated.


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• !he creation of ne( institutions&Widened competences of the European Union

led to the creation of new institutions the such European monetary #nstitute %#ME&

whose seat is in 4rankfurt" the European !gency for the environment located at9enmark" the European service of information legal %Europol& whose buildings

are in the


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$his policy does not replace the bilateral agreements of development assistance

contracted by the Member -tatesA she intends to supplement them.

• Unity& $he )ommunity in addition began since the end of the year /:2 in many

humanitarian operations. $he European Union gradually became the largestfinancial backer of assistance in the world. $he humane Office of the European

)ommunity %E)?O& was created in //' so in centrali3ing measurements. #ts

mandate applies primarily to the following fieldsH affected populations by the civil

wars of long lifeA humanitarian aid urgently %for the victims of natural disasters or

civil wars&A emergency food aidA helps with the refugees and with expelledA

installation of early alarm systems for the prevention of the natural

disasters. !pproximately ;2 8 of the funds are distributed by the means of

governmental organi3ations" ;2 8 by under organi3ations of the United


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BIBLIOGRAPHY

• httpHQQen.wikipedia.orgQwikiQEuropeanSUnion

• #mportant policies of EU H *ohson and mascarenhas %manan prakashan&

• !chievements of the European unionH httpHQQwww.memo.frQenQarticle.aspxT

#9)O


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european unions

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