A Practical Guide To The EU - Part One:

How The Main EU Institutions Works ¹

The European Union started life as the European Coal and Steel Community (ECSC) in 1951, and this formed the basis of the European Economic Community (EEC) founded in 1957. The EEC became the EC (European Community) in 1991, and finally the EU (European Union) in 1993. What began as a loose trading association in the post-war era has developed into an integrated economic, legal and political system. For better or for worse!

There are 3 key EU institutions: 1. the European Parliament, 2. The Council of the European Union, 3. The European Commission.

The European Parliament (www.europarl.eu.int) with its seat in Strasbourg could also be called the “voice of the people”, since each member of the European Parliament (MEP) has been directly elected by the citizens. Thus the Parliament represents the people, and with it being the directly elected body it exercises democratic supervision over the other European institutions. Together with the Council of the European Union it not only decides on the annual budget of the EU, but it also shares with the Council the power to legislate.

The Council of the European Union (http://ue.eu.int) represents the individual member states – hence it could be called the “voice of the member states”. Jointly with the Parliament it forms the legislative arm of the EU and decides on the EU’s budget; but it also co-ordinates the broad economic policies of the member states.

The European Commission (http://europa.eu.int/comm) with its seat in Brussels, but offices in Luxembourg and representations in all EU countries, was created as an independent body to represent the EU on the international stage and to uphold the interests of the EU as a whole.In that respect it could be called the “voice of the EU”. Through the Commission the member states are represented in international forums such as the World Trade Organisation. Being the executive arm of the EU, the Commission is responsible for the planning and implementation of the European policies. At the same time it is also the driving force of the legislative process, since the Commission proposesnew European legislation.

But there are four further EU institutions which will impact on you, your company and its future. The Commission shares its function of enforcing European law with the Court of Justice of the European Communities (http://curia.eu.int) in Luxembourg. It is the responsibility of the Court of Justice to ensure the EU legislation is interpreted and applied in the same way in each member state. The European Central Bank (www.ecb.int) in Frankfurt am Main manages the `new´ single currency, the euro, and produces and implements the EU’s economic and monetary policy; the European Economic and Social Committee (www.esc.eu.int) in Brussels represents employers, trade unions, farmers, consumers and other interest groups and it encourages civil society to become more involved in EU policymaking; and the Committee of the Regions (www.cor.eu.int), the voice of local government, ensures that Europe’s regional and local authorities have a say in EU policymaking and that regional and local identities and prerogatives are respected.

These seven institutions are YOURS, financed partly with your money, so make them work for YOU. In next month’s issue I will be suggesting how to get your money’s worth.