Formation History
As of 2021, there are 27 member states of the European Union. However, the current coalition and its structure has developed gradually throughout the latter half of the 20th century and into the present day. In 1950, French statesman Robert Schuman issued the Schuman Declaration, which called for France and Germany to pool their coal and steel production so that the economic crises that contributed to World War II would not happen again. In 1951, the European Coal & Steel Community was founded by France, Germany, Italy, the Netherlands, Belgium, and Luxembourg. By the late 1950s, this independent economic authority had grown into the European Economic Community and through the Treaty of Rome, a common market of goods, services, and people was established. The United Kingdom and Denmark joined in 1973, followed by Greece in 1981. The Schengen Agreement of 1985 was a pivotal moment for the European Community. It eliminated border controls and passport checks within the Schengen Area, facilitating the free movement of people to travel, work, and live within the area. The European Union was created with the Maastricht Treaty of 1992, and by that time Spain, Portugal and a reunified Germany had joined as well. The European Union has three pillars: the judiciary, legislative, and executive branches. It is the first truly supranational organization in modern history, where countries could be held to a greater independent authority than each of their own. Most recently, the Treaty of Lisbon in 2007 increased centralization, improved regulations and introduced a new global diplomatic framework.
The 5 Main Institutions of the European Union
The EU has evolved into a system of government that resembles the United States, and its European relatives. There are 5 main institutions – the European Council, European Parliament, European Commission, Council of the EU, and the Court of Justice of the EU.
- The European Council ensures that the highest elected officials in EU nations are represented in the European Union. It is made up of the heads of state of all EU member countries. They nominate the President of the European Council and the European Commission. This body cannot pass laws. It sets the direction of the EU’s common foreign security agenda and may request legislation to be pursued. The European Council President serves a two and a half year term, once renewable, and presides over four meetings a year in Brussels, known collectively as the EU summits. Decision-making is generally by consensus and only heads of state can vote. Additionally, the European Council participates in the Euro Summit, where the heads of state of the Eurozone, the Council President and the Commission President meet exclusively to discuss economic policy in the Euro Area.
- The European Parliament is the law-making body of the EU. It could be described as the body of the European citizens, with direct elections held every five years. The Parliament formally elects the Commission President and approves the Commission body, and has the power to form investigative sessions . They also undertake election observations, sending delegations to countries outside the EU, to analyze their election process and ensure democratic principles are upheld. The Parliament establishes the EU budget with the European Council and sets monetary policy with the European Central Bank.
- The European Commission is responsible for drafting proposals for legislation for the European Parliament. It represents the interests of the European Union as a whole, implementing its global vision for EU development and funding programs. It proposes and manages the EU budget, which is submitted to the Council of Europe and then Parliament for approval and final ratification. The Commission works with member states to execute funding projects, and acts in a supervisory and regulatory capacity. While the Commission President and commissioners are chosen by the European Council, the European Commission is intended to act as its own independent authority that does not follow a single state’s agenda. The Commission President defines the policy direction, and with the Commissioners produces an annual work programme that outlines the EU’s strategic objectives and how they are to be implemented. In its own words, the European Commission sets objectives that support and promote European values of “freedom, democracy, equality, the rule of law, and respect for human rights.”
- The Council of the EU, also known as The Council, works closely with the other branches to finalize the agenda of the European Union. They are the ‘decision-maker’ of the EU. The Council will negotiate and adopt EU laws from European Commission proposals. They are responsible for developing EU foreign and security policy with European Council guidelines, as well as adopting the annual EU budget with the European Parliament. The Council meets with other nations and international organizations to finalize agreements between them and the EU. There are no fixed members and the President serves a six month term that rotates between nations. There are ten different policy areas on which the Council meets, and each member state will send their respective minister for that configuration. For example, if the meeting is on foreign affairs, then 27 foreign ministers will attend. The decision-making process is a qualified majority system with four countries needed for a veto. For ‘sensitive topics’ such as foreign policy and taxation, a unanimous vote is necessary.
- As an intergovernmental organization, each nation interprets the EU’s laws in accordance with its own constitution. The Court of Justice of the EU or CJEU is responsible for making sure that EU laws are applied to member states in the same way. It is the judicial branch of the EU. It settles legal disputes between nations and EU institutions. For instance, if the European Commission or a different nation feels that a member state is failing to comply with EU law, then it is up to the courts to rule whether an infringement has occurred. On the other hand, if a member state or any institution believes that an EU act violates EU treaties or the sovereignty of the national court, it can ask the CJEU to annul the legislation. There are two courts of the CJEU, the Court of Justice and the General Court. The Court of Justice is the Supreme Court of the EU, and deals with requests for preliminary rulings from national courts seeking guidance on how to interpret EU law. The General Court is responsible for contestations to EU institution actions against its member states that violate their fundamental rights or EU treaties. It deals mainly with competition law, state aid, trade, agriculture and anti-terrorist law. First, a written statement for annulment of an EU law is submitted to the Court. A general meeting, usually with five judges, then takes place to discuss if a hearing should be held and if the advocate general is necessary. The advocate general issues official opinions on the case to the judges after the lawyers of either side present their case. Their statements are not legally binding, but greatly influence whether an action for annulment will be successful. It is General Court procedure to have most cases heard by three judges. Any EU citizen, private company, or international organization can submit a case to the CJEU.
Current Issues Facing the EU
Since 2015, the European Migrant Crisis has been one of the longstanding humanitarian issues for the EU, but since then there have been greater measures taken to ensure a humane migration policy. It remains a very significant global issue, and for detailed analysis read Siena Frost’s article here.
The United Kingdom, the second largest net contributor to the EU, officially left the European Union in 2020 as a result of the controversial Brexit referendum vote in 2016. This will have wide reaching economic impacts on the United Kingdom and the European Union, and the ongoing negotiations demonstrate the intricate ties that the EU has within countries.
With the introduction of the Euro, came the most impactful economic mechanism of the European Union. For a breakdown of the Euro, the EU’s common currency, and its issues, read Francesca Reynolds’ article here.
With a 2 trillion-plus stimulus package, the EU’s largest long-term budget to date will include a 750 billion euros COVID-19 recovery fund for a post-pandemic Europe. Another significant financial injection is the European Green Deal, with one third of the 1.8 trillion recovery plan going to financing its investments in building a more environmentally sustainable Europe.
