European Union (Ir)

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Abstention, constructive (positive abstention)

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Constructive abstention is the idea of allowing a Member State to abstain on a vote in Council under the common foreign and security policy (CFSP), without blocking a unanimous decision.

This option was introduced by the Treaty of Amsterdam. Article 31 of the Treaty on European Union (TEU) provides that if abstention is accompanied by a formal declaration, the Member State in question is not obliged to apply the decision but must accept that it commits the Union. The Member State must then refrain from any action that might conflict with Union action based on that decision.

In accordance with Article 31 of the TEU, the decision cannot be adopted if the members of the Council attaching such a declaration to their abstention represent at least one third of the Member States comprising at least one third of the population.

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Common foreign and security policy (CFSP)

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The CFSP was established by the Maastricht Treaty. It provides for the eventual framing of a common defence policy which might in time lead to a common defence.

The objectives of the CFSP are set out in Article 24 of the EU Treaty and are to be attained through specific legal instruments, such as joint actions and common positions adopted unanimously in the Council.

With the Lisbon Treaty, the CFSP now forms part of the larger framework of the Union’s external Union. The Lisbon Treaty reiterates the principles which govern the definition of this policy. Furthermore, it increases the effectiveness of the Common Foreign and Security Policy by entrusting the High Representative for Foreign Affairs and Security Policy with the mission to implement the strategies and decisions taken by the European Council and the Council in matters related to the CFSP.

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Treaty of Amsterdam

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The Treaty of Amsterdam is the result of the Intergovernmental Conference launched at the Turin European Council on 29 March 1996. It was adopted at the Amsterdam European Council on 16 and 17 June 1997 and signed on 2 October 1997 by the Foreign Ministers of the fifteen Member States. It entered into force on 1 May 1999 (the first day of the second month following ratification by the last Member State) after ratification by all the Member States in accordance with their respective constitutional requirements.

From the legal point of view, the Treaty amends certain provisions of the EU Treaty, the Treaties establishing the European Communities and certain related acts, creating a Community employment policy, transferring to the Communities some of the areas in the field of justice and home affairs (JHA), reforming the common foreign and security policy (CFSP), extending qualified-majority voting and enabling closer cooperation between Member States.

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Treaty of Nice

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Adopted after the Nice European Council in December 2000 and signed on 26 February 2001, the Treaty of Nice entered into force on 1 February 2003.

It is the result of the Intergovernmental Conference (IGC) that began in February 2000, the objective of which was to adapt the working of the European institutions before the arrival of new Member States.

The Treaty of Nice opened the way to the institutional reform needed for the EU enlargement with the accession of countries from eastern and southern Europe. Some of its provisions were amended by the Treaty of Accession of the ten new Member States, which was signed in Athens in April 2003, and the Treaty of Luxembourg on the accession of Romania and Bulgaria, signed in April 2005. Since 1 January 2007, the date of the last enlargement, the Union has thus been founded on the EU and EC Treaties as most recently amended by the Treaties of Nice, Athens and Luxembourg.

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Intergovernmental Conference (IGC)

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This term is used to describe negotiations between the Member States' governments with a view to amending the Treaties. These conferences are convened under the framework of the ordinary revision procedure of the Treaties provided for by Article 48 of the Treaty on European Union.

Under this procedure, any Member State, the Commission or the European Parliament may present to the Council proposals for the amendment of the Treaties. These proposals are submitted to the European Council by the Council and the national Parliaments are notified. If the European Council, acting by simple majority after consulting the European Parliament and the Commission, decides in favour of examining the proposed amendments, the President of the European Council convenes a Convention. The Convention is composed of representatives of the national Parliaments, of the Heads of State or Government of the Member States, of the European Parliament and of the Commission.

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Treaties

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The creation of the first “Community”, the European Coal and Steel Community (ECSC), was the starting point for over 50 years of European treaty-making. Between 1951 (ECSC Treaty) and 2001(Treaty of Nice), no fewer than 16 treaties were signed. This series of treaties did far more than simply amend the original text: new treaties were born and gradually extended the family.

The principal treaties are as follows:

Treaty establishing the European Coal and Steel Community (ECSC), signed in Paris in 1951. This treaty expired on 23 July 2002.
Treaty establishing the European Economic Community (EEC), signed in Rome in 1957.
Treaty establishing the European Atomic Energy Community (Euratom), signed in Rome in 1957.
Single European Act (SEA), signed in Luxembourg in 1986.
Treaty on European Union (TEU), signed in Maastricht in 1992.
Treaty of Amsterdam, signed on 2 October 1997.
Treaty of Nice, signed on 26 February 2001.

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Revision of the Treaties

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Article 48 of the Treaty on European Union (TEU) is the legal base which enables the Treaties to be revised. The Treaty of Lisbon amends the ordinary revision procedure and introduces simplified revision procedures.

Ordinary revision procedure: Any Member State, the Commission and the European Parliament may submit proposals for revising the Treaties to the Council of the Union. These proposals are then sent to the European Council and national parliaments are informed. If the European Council, after consulting the European Parliament and the Commission, delivers an opinion in favour of calling a conference, it is convened by the President of the Council. The Convention examines proposals for amendments. It adopts by consensus a recommendation to a conference of representatives of the governments of the Member States (IGC). The European Council may decide not to convene a Convention should the extent of the amendments not justify it.

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NATO (North Atlantic Treaty Organisation)

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The North Atlantic Treaty Organisation (NATO, or the Atlantic Alliance) was founded by the North Atlantic Treaty, also known as the Treaty of Washington, signed on 4 April 1949, and has its headquarters in Brussels. It currently has 28 members, following successive enlargements:

1949 (12 founding members): Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, the United States;
February 1952: Greece and Turkey;
May 1955: the Federal Republic of Germany;
May 1982: Spain;
March 1999: the Czech Republic, Hungary and Poland;
March 2004: Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia;
1 April 2009: Albania and Croatia.
The EU's policy respects the NATO obligations of the Member States concerned and is compatible with the common security and defence policy, is determined within this framework.

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Collective defence

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Since the end of the Second World War, the Western European Union (WEO) and NATO have been the main guarantors of European security. The Treaties for each of these organisations include a collective self-defence clause (Article V of the Treaty of Brussels establishing the WEU and Article 5 of the North Atlantic Treaty) in accordance with which the signatory States have an obligation of mutual assistance in the case of aggression, in order to re-establish security.

The Treaty of Lisbon also incorporates in the European rules applicable to the Common Security and Defence Policy (CSDP) a collective self-defence clause (Article 41(7) of the Treaty on European Union). When a European Union (EU) country is the target of armed aggression on its territory, the other EU Member States shall aid and assist it by any means possible. This obligation does not affect the commitments made by EU countries as members of NATO.

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Common Security and Defence Policy (CSDP)

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The European Union's European security and defence policy (ESDP) includes the gradual framing of a common defence policy which might in time lead to a common defence. It aims to allow the Union to develop its civilian and military capacities for crisis management and conflict prevention at international level, thus helping to maintain peace and international security, in accordance with the United Nations Charter. The ESDP, which does not involve the creation of a European army, is developing in a manner that is compatible and coordinated with NATO.

The Maastricht Treaty (1992) was the first to include provisions on the Union's responsibilities in terms of security and the possibility of a future common defence policy. With the entry into force of the Treaty of Amsterdam (1999), new tasks have been included in the Treaty on European Union (Title V) such as crisis management missions or peace-keeping missions.

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Petersberg tasks

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The "Petersberg tasks" are an integral part of the European security and defence policy (ESDP). They were explicitly included in the Treaty on European Union (Article 17). The Treaty of Lisbon (Article 42 of the TEU) complements the range of missions which may be carried out in the name of the European Union (EU). From now on, they cover:

humanitarian and rescue tasks;
conflict prevention and peace-keeping tasks;
tasks of combat forces in crisis management, including peacemaking;
joint disarmament operations;
military advice and assistance tasks;
post-conflict stabilisation tasks.
These tasks were set out in the Petersberg Declaration adopted at the Ministerial Council of the Western European Union (WEU) in June 1992. On that occasion, the WEU Member States declared their readiness to make available to the WEU, but also to NATO and the European Union, military units from the whole spectrum of their conventional armed forces.

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Accession criteria (Copenhagen criteria)

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Any country seeking membership of the European Union (EU) must conform to the conditions set out by Article 49 and the principles laid down in Article 6(1) of the Treaty on European Union. Relevant criteria were established by the Copenhagen European Council in 1993 and strengthened by the Madrid European Council in 1995.

To join the EU, a new Member State must meet three criteria:

political: stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;
economic: existence of a functioning market economy and the capacity to cope with competitive pressure and market forces within the Union;
acceptance of the Community acquis: ability to take on the obligations of membership, including adherence to the aims of political, economic and monetary union.
For the European Council to decide to open negotiations, the political criterion must be satisfied.

Any country that wishes to join the Union must meet the accession criteria.

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Candidate countries

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Candidate country status is conferred by the European Council on the basis of an opinion from the European Commission, drawn up following an application for membership by the country concerned.

However, candidate country status does not give a right to join the Union automatically. The Commission scrutinises the application in the light of the accession criteria (Copenhagen criteria), while the accession process starts with the European Council decision to open accession negotiations.

Depending on their circumstances, candidate countries may be required to institute a reform process in order to bring their legislation into line with the Community acquis and to strengthen their infrastructure and administration if necessary. The accession process is based on the pre-accession strategy, which provides instruments such as financial aid.

Accession depends on the progress made by the candidate countries, which is regularly assessed and monitored by the Commission.

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Enlargement

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The European Union (EU) currently has 27 Member States. Following the first six Member States — Belgium, France, Germany, Italy, Luxembourg and the Netherlands — 21 countries have acceded to the Union:

1973: Denmark, Ireland and the United Kingdom;
1981: Greece;
1986: Spain and Portugal;
1995: Austria, Finland and Sweden;
2004: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia;
2007: Bulgaria and Romania.
Croatia, the Former Yugoslav Republic of Macedonia and Turkey have the status of candidate countries. Accession negotiations with Croatia and Turkey opened on 3 October 2005.

The countries of the Western Balkans which are engaged in the stabilisation and association process have the status of potential candidate countries. These are Albania, Bosnia-Herzegovina, Montenegro and Serbia, including Kosovo, as defined by UN Security Council Resolution 1244.

Iceland submitted an application for accession to the EU in July 2009.

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Accession negotiations

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Accession negotiations are vital for monitoring and helping candidate countries to prepare for accession and for assessing how ready they are. Each country is judged on its own merits from the point of view of compliance with the accession criteria. Negotiations help candidate countries to prepare to fulfil the obligations of European Union membership. They also allow the Union to prepare itself for enlargement in terms of absorption capacity.

Negotiations relate to the adoption and implementation of the Community acquis, which is monitored by the Commission. The acquisis divided into chapters, and there are as many chapters as areas in which progress must be made. These areas are identified by screening theacquis. The Technical Assistance and Information Exchange programme (TAIEX) plays a part here. Each chapter is negotiated individually, and measurable reference criteria are defined for the opening and closing of each chapter.

Negotiations take place at bilateral intergovernmental

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Community acquis

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The Community acquis is the body of common rights and obligations which bind all the Member States together within the European Union. It is constantly evolving and comprises:

the content, principles and political objectives of the Treaties;
the legislation adopted in application of the treaties and the case law of the Court of Justice;
the declarations and resolutions adopted by the Union;
measures relating to the common foreign and security policy;
measures relating to justice and home affairs;
international agreements concluded by the Community and those concluded by the Member States between themselves in the field of the Union's activities.
Applicant countries have to accept the Community acquis before they can join the Union. Derogations from the acquis are granted only in exceptional circumstances and are limited in scope. To integrate into the European Union, applicant countries will have to transpose the acquis into their national legislation.

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Accession of new Member States to the European Union

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Accession of new Member States to the European Union (EU) is governed by Article 49 of the EU Treaty. A state that wishes to become a member of the Union must satisfy two conditions:

it must be a European state;
it must respect the common values of the Member States and undertake to promote them. These are human dignity, liberty, democracy, the rule of law, and respect for human rights including minorities (Article 2 of the EU Treaty).
The candidate state informs the European Parliament and national parliaments of the Member States of their intention to accede to the EU. The Council must agree unanimously on accession, after consulting the Commission and receiving assent by qualified majority of the European Parliament.

The conditions and date of accession, any transition periods required and the adjustments to the Treaties on which the Union is founded must be agreed in the form of an accession treaty between the candidate country and the Member States.

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Withdrawal clause

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The Treaty of Lisbon provides for a mechanism for voluntary and unilateral withdrawal from the European Union (Article 50 of the Treaty on European Union). A Member State wishing to withdraw notifies its intention to the European Council, which provides guidelines for the conclusion of an agreement setting out the arrangements for its withdrawal.

This agreement is concluded on behalf of the European Union (EU) by the Council, acting by qualified majority, after obtaining the consent of the European Parliament.

The Treaties cease to apply to the State in question from the date of entry into force of the agreement, or within two years after notification of the withdrawal. The Council may decide to extend that period.

Any State which has withdrawn from the EU may apply to rejoin by undergoing the accession procedure once again.

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Accession partnership

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Accession partnerships are a pre-accession strategy instrument which determines the candidate countries' particular needs on which pre-accession assistance should be targeted and provides a framework for:

the short and medium-term priorities, objectives and conditions determined for each candidate country on the basis of the accession criteria (Copenhagen criteria) in accordance with the Commission's opinion on its membership application;
pre-accession assistance.
An accession partnership is established for each candidate country to provide guidance and encouragement during preparations for membership. To this end, each candidate country draws up a National Programme for the Adoption of the Acquis (NPAA), which sets out a timetable for putting the partnership into effect. Each candidate country also draws up an action plan for strengthening its administrative and judicial capacities.

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Antitrust control

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The term "antitrust" refers to competition rules on agreements and business practices which restrict competition and on abuse of dominant positions.

Agreements and concerted practices which may restrict competition are prohibited by the antitrust provisions of Article 101 of the Treaty on the Functioning of the European Union - TFEU. The prohibition applies to cartels (also referred to as "agreements") and relates to situations in which competing businesses collude to restrict competition, by fixing prices, limiting production or sharing markets. Restrictive agreements may nonetheless be permitted if they generate more positive than negative effects (agreements improving production, product distribution, contributing to technical progress, etc.).

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Competition

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A market where there is free competition is a market on which mutually independent businesses engage in the same activity and contend to attract consumers. In other words, each business is subject to competitive pressure from the others. Effective competition thus gives businesses a level playing field but also confers many benefits on consumers (lower prices, better quality, wider choice, etc.).

European competition policy is intended to ensure free and fair competition in the European Union. The Community rules on competition (Articles 101 to 109 of the Treaty on the Functioning of the European Union - TFEU) are based on five main principles:

prohibition of concerted practices and agreements and abuse of a dominant position liable to affect competition within the common market (antitrust rules);preventive supervision of mergers with a European dimension, to determine whether they restrict competition;
supervision of aid granted by the Member States which threatens to distort compe

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Mergers

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A concentration is the legal combination of two or more undertakings, by merger or acquisition. While such operations may have a positive impact on the market, they may also appreciably restrict competition, by creating or strengthening a dominant player.

In order to preclude restrictions of competition, the European Commission exercises control over planned concentrations with a Community dimension (i.e. when the operation extends beyond the borders of a Member State and exceeds certain worldwide and Community-wide turnover thresholds) and may authorise them subject to conditions or forbid them.

In determining whether a concentration is compatible with the common market, the Commission takes account on a case-by-case basis of several factors, such as the concepts of "Community dimension", "dominant position", "effective competition" and "relevant market". The basic criterion used to analyse concentrations is that of a "dominant position".

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Enterprise policy

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The objective of enterprise policy is to produce an environment that is more conducive to the creation and development of businesses, especially small and medium-sized enterprises (SMEs), within the European Union.

The main focus of this policy is on:

promoting entrepreneurship (encouraging business creation, and supporting companies, especially SMEs, during their start-up and development phase);
promoting European performances in terms of competitiveness (encouraging businesses to adapt to structural change and maintaining a high and consistent level of productivity growth;
taking account of the specific characteristics and needs of the different sectors of industry;
promoting innovation (following up technological developments, new product designs, developing new ways of marketing products);
better access to funding, support networks and programmes;
simplification of the regulatory and administrative environment.

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Competitiveness

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A competitive economy is an economy with a sustained high rate of productivity growth.

Since the Lisbon Strategy set out to make Europe the most competitive and dynamic economy in the world, competitiveness has become one of the political priorities of the Union. European industry needs to be competitive if the Community is to achieve its economic, social and environmental goals and thus ensure an improving quality of life for Europe's citizens. In its efforts to promote competitiveness, the Union also seeks to adapt the European economy to structural change, relocation of industrial activity to emerging economies, redeployment of jobs and resources to new industrial sectors and the risk of a process of deindustrialisation.

The Union's competitiveness is determined by productivity growth and thus depends on the performance and the future of European industry, an especially on its capacity for structural adjustment.

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Globalisation of the economy

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Globalisation refers to the phenomenon of the opening up of economies and borders, resulting from the increase in trade and capital movements, the movement of people and ideas, spread of information, knowledge and technology and from a process of deregulation. This process, both geographic and sectoral, is not recent but has been accelerating in recent years.

While globalisation is the source of many opportunities, it remains one of the greatest challenges facing the European Union today. In order to exploit fully the growth potential arising from this phenomenon and ensure that its benefits are shared fairly, the EU is working on setting up, via multilateral governance, a model for sustainable development aimed at reconciling economic growth, social cohesion and environmental protection.

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Sustainable development

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Sustainable development is a process which aims to reconcile economic development with the protection of social and environmental balance.

The inclusion of environmental issues in the definition and implementation of other European policies (energy, research, industry, agriculture, etc.) is essential for achieving the objective of sustainable development. This principle was introduced by the Treaty of Maastricht and in the Cardiff Summit in 1998 and formed the cornerstone for coordinated action at European level.

Following this, in May 2001, the EU adopted a strategy in favour of sustainable development. It was revised in 2006 to remedy its noted shortcomings and to give it new impetus. Furthermore, the global partnership for sustainable development, adopted by the Commission in 2002, gave it an external dimension.

The Lisbon Treaty states that from now on sustainable development shall be included in the European Union's objectives (article 3 & 3 of the Treaty on the European Union)

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Kyoto Protocol

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Adopted in December 1997, this Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) highlights the international community's new attitude towards the phenomenon of climate change. Under the Protocol, the industrialised countries have undertaken to reduce their emissions of six greenhouse gases (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride) by at least 5% during the period 2008–2012 compared with 1990 levels.

The Kyoto Protocol provides for three market-based mechanisms: emissions trading between countries which signed the Protocol, joint implementation of projects by these countries, and the clean development mechanism (with countries which did not sign the Protocol).

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Environment

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The European Union's environment policy, based on Article 191 of the Treaty on the Functioning of the European Union (TFEU), aims to preserve, protect and improve the quality of the environment and to protect human health. It also focuses on the careful and rational use of natural resources and contributes to promoting, at international level, measures intended to combat regional or global environmental problems, tackling climate change, in particular.

It is based on the precautionary, preventive action, correction at source and "polluter pays" principles.

The Sixth Environment Action Programme, adopted in 2002, defines the priorities and objectives of European environmental policy until 2010, concentrating on four priority areas: climate change; nature and biodiversity; environment, health and quality of life; and natural resources and wastes.

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Environmental liability

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Environmental liability is an application of the "polluter pays" principle outlined in the Treaty establishing the European Community. Arrangements for applying it are set out in Directive 2004/35/EC.

It applies to environmental damage and the risk of damage resulting from commercial activities, once it is possible to establish a causal link between the damage and the activity in question. Environmental damage is defined as direct or indirect damage caused to the aquatic environment, flora and fauna and natural habitats protected by the Natura 2000 network, as well as direct or indirect contamination of the soil which could lead to a serious risk to human health.

Two systems of liability have been created: a system with no fault to be proved and a system where evidence of a fault or negligence must be presented.

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Area of freedom, security and justice

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It was decided to establish an area of freedom, security and justice, with the aim of ensuring genuine freedom of movement for individuals on the territory of the European Union and a higher level of security through more effective action against crime, racism and xenophobia.

The "Area of freedom, security and justice" is covered by Title V of the Treaty on the Functioning of the European Union. It deals with policies on border checks, asylum and immigration, with judicial cooperation in civil and criminal matters, and with police cooperation. Decisions in these fields are mostly taken by qualified majority voting. The European Parliament has co-decision powers with the Council in the majority policy areas (ordinary legislative procedure).

Opt-out arrangements exist for the United Kingdom and Ireland, though they have decided to opt-in on most initiatives concerning the area of freedom, security and justice. Denmark exercises full opt-out from this area.

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Free movement of persons (visas, asylum, immigration and other policies)

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Title IV of the Treaty establishing the European Community (EC Treaty) set out the European Union's policy on "visas, asylum, immigration and other policies related to free movement of persons". These areas of action were linked to the progressive institution of an area of freedom, security and justice and covered the following:

free movement of persons;
external border controls;
asylum, immigration and safeguarding of the rights of third-country nationals;
judicial cooperation in civil matters.
Following a five-year transition period after the entry into force of the Treaty of Amsterdam (May 1999), the Commission had sole right of initiative and the codecision procedure applied.

Before being incorporated into the EC Treaty by the Treaty of Amsterdam, these fields used to fall under Title VI of the Treaty on European Union (third pillar). The Treaty of Amsterdam "communitised" them, bringing them within the legal framework of the first pillar.

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Single institutional framework

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The concept of the single institutional framework was a corollary of the institutional architecture of the Treaty of Maastricht. (Article 3 of the Treaty) Its objective was to ensure consistency and continuity in the actions needed to achieve the objectives of the European Union (EU). This implied that the institutions serving the Union and the Community were the same.
These institutions thus participated in the decision-making process for the various pillars of the European Union.

The Treaty of Lisbon simplifies the European institutional architecture. It eliminates the pillar structure and replaces the European Community with the European Union.

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European institutions

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The Union has an institutional framework aimed at defending its values, objectives and interests, the interests of its citizens and those of its Member States. This framework also contributes to ensuring the coherency, effectiveness and continuity of Community policies and actions.

According to Article 13 of the Treaty on European Union, the institutional framework is composed of 7 institutions:

the European Parliament;
the European Council
the Council of the European Union (simply called “the Council”);
the European Commission;
the Court of Justice of the European Union;
the European Central Bank;
the Court of Auditors.
Each institution acts within the limits of their remit, granted in the Treaties in line with the procedures, conditions and purposes laid down therein.

The European Parliament, the Council and the Commission are assisted by an Economic and Social Committee and a Committee of the Regions performing advisory functions.

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Court of Justice of the European Union

The two main functions of the Court are to:

check whether instruments of the European institutions and of governments are compatible with the Treaties (infringement proceedings, proceedings for failure to act, actions for annulment;
give rulings, at the request of a national court, on the interpretation or the validity of provisions contained in Community law (references for a preliminary ruling).

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The Court of Justice of the European Union (CJEU), created in 1952 by the Treaty establishing the European Coal and Steel Community, comprises the Court of Justice, the General Court and specialised courts. It ensures compliance with the law in interpreting and applying the Treaties. It comprises one Judge per Member State and eight Advocates-General. The number of advocates-general may be increased to 11 at the request of the CJEU. The Judges and Advocates-General are appointed by common accord of the governments of the Member States for a renewable term of six years. They are chosen from the lawyers who possess the qualifications required for appointment to the highest judicial offices in their respective countries.

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European Commission

Established by the Treaty of Rome in 1957, the European Commission has comprised 27 Commissioners since the accession of Bulgaria and Romania on 1 January 2007. Its main function is to propose and implement Community policies adopted by the Council and the Parliament. It acts in the general interest of the Union with complete independence from national governments.

It enjoys a quasi-exclusive right of initiative in matters where the Community method applies (matters where Member States have transferred a significant part of their responsibilities, such as the Common Agricultural Policy, the Customs Union, the internal market, the Euro, etc.), which drive European integration. The Lisbon Treaty “communitarises” issues relating to justice and internal affairs and assigns the Commission a right of initiative in these areas, which it shares with Member States.

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As guardian of the Treaties, the Commission oversees the application of Union law under the control of the Court of Justice of the European Union.
It executes the budget and manages the programmes. It exercises coordinating, executive and management functions, as laid down in the Treaties. With the exception of the Common Foreign and Security Policy, and other cases provided for in the Treaties, it ensures the Union’s external representation. It initiates the Union’s annual and multiannual programming with a view to achieving inter-institutional agreements.

The Commission is appointed for a five-year term by the Council acting by qualified majority in agreement with the Member States. It is subject to a vote of appointment by the European Parliament, to which it is answerable. The Commissioners are assisted by an administration made up of Directorates-General and specialised departments whose staff are divided mainly between Brussels and Luxembourg.

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Composition of the European Commission

From the entry into force of the Treaty of Lisbon and until 31 October 2014, the Commission is made up of one national of each Member State, including the President of the Commission and the new High Representative of the Union for Foreign Affairs and Security Policy, who is one of its Vice-Presidents. The term of office is five years.

From 1 November 2014, the Commission will be made up of a number of members corresponding to two thirds of the number of Member States, unless the European Council decides unanimously to change the number.

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Members of the Commission are chosen from among the nationals of the Member States in accordance with a rotation system which is strictly equal between Member States, based on the principle of strict equality of treatment between countries in terms of sequence and time spent as members. This system was established unanimously by the European Council in accordance with Article 244 of the Treaty on the Functioning of the European Union (TFEU). Members of the Commission are chosen on the basis of general competence and commitment to Europe, from among a number of people all offering guarantees of independence. The composition of the Commission should also reflect the geographical and demographic diversity of the Union.

In consultation with the President-elect, the Council adopts the list of Members of the Commission based on the suggestions made by the Member States.

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European Council

With the entry into force of the Treaty of Lisbon, the European Council becomes one of the European Union institutions. Comprising the Heads of State or Government of the Member States, it meets at least four times a year and includes the President of the European Commission as a full member. It elects its President for a period of two and a half years.

The role of the European Council is to provide the European Union with the necessary impetus for its development and to define the general political guidelines (Article 15 of the Treaty on European Union - TEU). It does not exercise any legislative function. However, the Treaty of Lisbon provides the option for the European Council to be consulted on criminal matters (Articles 82 and 83 of the Treaty on the Functioning of the European Union) or on social security matters (Article 48 of the TFEU) in cases where a State opposes a legislative proposal in these areas.

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Decisions are taken following negotiations between Member States during European summits. The outcomes of European Council proceedings are recorded in conclusions published after each meeting. An extraordinary meeting can be held whenever necessary.

The European Council was set up by the communiqué issued at the close of the December 1974 Paris Summit and first met in 1975. Before that time, from 1961 to 1974, the practice had been to hold European summit conferences. Under the terms of a declaration attached to the Final Act of the Intergovernmental Conference preparatory to the Treaty of Nice, all meetings of the European Council have been held in Brussels since the Union attained a membership of 25 (May 2004).

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European Parliament

The European Parliament (EP) is the assembly of the representatives of the 500 million Union citizens. Since 1979 they have been elected by direct universal suffrage. The Lisbon Treaty set the total number of EP seats to 751. The number of MEPs per country is set by a European Council decision adopted unanimously on the EP proposal. No country may now have less than 6 or more than 96 MEPs.

The European Parliament's main functions are as follows:

legislative power: in most cases Parliament shares the legislative power with the Council, in particular through the ordinary legislative procedure.
budgetary power: Parliament shares budgetary powers with the Council in voting on the annual budget, rendering it enforceable through the President of Parliament's signature, and overseeing its implementation
power of control over the Union's institutions, in particular the Commission.

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Parliament can give or withhold approval for the designation of Commissioners and has the power to dismiss the Commission as a body by passing a motion of censure. It also exercises a power of control over the Union's activities through the written and oral questions it can put to the Commission and the Council. And it can set up temporary committees and committees of inquiry whose remit is not necessarily confined to the activities of European institutions but can extend to action taken by the Member States in implementing European policies.
The Lisbon Treaty strengthens the role of the European Parliament by placing it on an equal footing with the Council of Ministers. Namely, the Lisbon Treaty:

extends the ordinary legislative procedure (ordinary legislative procedure) to 40 new fields including agriculture, energy security, immigration, justice and home affairs, health and structural funds;
reinforces the role of the Parliament in the adoption of the EU budget.

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European Central Bank (ECB)

Founded on 30 June 1998 in Frankfurt, the European Central Bank (ECB) is responsible for implementing monetary policy in the Eurozone. Its main task is to maintain price stability in the Eurozone and, consequently, to preserve the purchasing power of the Euro. The Eurozone comprises the sixteen countries of the European Union (EU) which have introduced the Euro since 1999.

The European Central Bank and the national central banks constitute the European System of Central Banks (ESCB).

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The decision-making bodies of the ECB (Executive Board and Governing Council) administer the ESCB, whose roles are to manage money supply, conduct exchange operations, hold and manage the official foreign reserve assets of the Member States and ensure the smooth functioning of payment systems.

With the entry into force of the Treaty of Lisbon, the European Central Bank becomes an EU institution in its own right. It has legal personality and acts totally independently. It alone has the power to authorise the issue of the Euro.

The managing bodies of the ECB are:

The Governing Council, made up of the members of the Executive Board and the Governors of the national central banks of the Member States which have adopted the Euro.
The Executive Board, made up of the President, the Vice-President and four other members appointed by the European Council, acting by qualified majority on a recommendation from the Council and after consulting the EP and the Governing Board of ECB.

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Economic and Monetary Union (EMU)

Economic and monetary union (EMU) is the process of harmonising the economic and monetary policies of the Member States of the Union with a view to the introduction of a single currency, the euro. It was the subject of an Intergovernmental Conference (IGC), which concluded its deliberations in Maastricht in December 1991.

EMU was achieved in three stages:

First stage (1 July 1990 to 31 December 1993): free movement of capital between Member States, closer coordination of economic policies and closer cooperation between central banks.
Second stage (1 January 1994 to 31 December 1998): convergence of the economic and monetary policies of the Member States (to ensure stability of prices and sound public finances) and the establishment of the European Monetary Institute (EMI) and, in 1998, of the European Central Bank (ECB).
Third stage (from 1 January 1999): irrevocable fixing of exchange rates and introduction of the single currency on the foreign-e

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xchange markets and for electronic payments. Introduction of euro notes and coins.
So far, 17 of the 27 Member States of the European Union have introduced the single currency.

Three Member States did not adopt the single currency: the United Kingdom and Denmark, both of which have an opt-out clause, and Sweden, following a referendum in September 2003. The States which joined the Union on 1 May 2004 and 1 January 2007 are required to adopt the euro as soon as they meet all the convergence criteria. They were not granted opt-out clauses during the accession negotiations.

The challenges facing the long-term success of EMU are continued budgetary consolidation and closer coordination of Member States' economic policies.

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Broad economic policy guidelines (BEPG)

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The broad economic policy guidelines (BEPG) are the central link in coordination of the Member States' economic policies. They are adopted by the Council in the form of a non-legally binding recommendation. However, they are subject to a multilateral surveillance mechanism which aims to ensure that Member States comply with them.

Under this surveillance mechanism, the Commission is responsible for providing the Council with information on the economic development of each of the Member States. If the economic policies of a Member State do not comply with the BEPGs or there is a risk they could compromise the functioning of the Economic and Monetary Union (EMU), the Commission may issue the Member State concerned with a warning. Furthermore, the Council can address recommendations to the Member State, which may be made public.

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Council of the European Union

The Council of the European Union (“Council of Ministers” or “Council”) is the Union's main decision-making body. Its meetings are attended by Member State ministers, and it is thus the institution which represents the Member States. The Council's headquarters are in Brussels, but some of its meetings are held in Luxembourg. Sessions of the Council are convened by the Presidency, which sets the agenda.

The Council meets in different configurations (ten in all), bringing together the competent Member State ministers: General Affairs; Foreign Affairs; Economic and Financial Affairs; Justice and Internal Affairs; Employment, Social Policy, Health and Consumer Affairs; Competitiveness; Transport, Telecommunications and Energy; Agriculture and Fisheries; Environment; Education, Youth and Culture. The “General Affairs” Council is responsible for coordinating the work of the different Council formations, with the Commission’s help.

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The presidency of the Council is held by groups of three Member States for a period of eighteen months. Each member of the group holds the presidency for all the Council formations for six months, with the exception of the Foreign Affairs formation which is presided over by the High Representative of the Union for Foreign Affairs and Security Policy. During this period, the other members of the group assist the President in office with the implementation of the joint programme. Each European Union country holds the presidency of the Council for a period of six months, in rotation. A new system for the presidency of the Council has been in force since January 2007. The three presidents draw up a joint draft programme for their 18-month period in office.

Decisions are prepared by the Committee of Permanent Representatives of the Member States (Coreper), assisted by working groups of national government officials.

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Article 71 Committee (Title V of the TFEU)

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The Standing Committee provided for by Article 71 of the Treaty on the Functioning of the European Union (TFEU) is a Council working group in which the other Union bodies and agencies may also participate. The role of the Committee is to coordinate Member States operational cooperation in the area of freedom, security and justice.

The Standing Committee also supports the Political and Security Committee (PSC) in assisting the Council, with a view to implementation of the EU solidarity clause.

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Political and Security Committee (PSC)

The Political and Security Committee (COPS) is the permanent body in the field of common foreign and security policy mentioned in Article 38 of the Treaty on European Union.

It is made up of Ambassadors from the 27 Member States. Its remit is:

to monitor the international situation in the areas covered by the common foreign and security policy (CFSP);
to contribute to the definition of policies;
to monitor implementation of the decisions taken under the responsibility of the High Representative of the Union for Foreign Affairs and Security Policy.
Under the responsibility of the Council and the High Representative, the Committee exercises political control and strategic direction of crisis management operations. It may thus be authorised to take decisions on the practical management of a crisis. It is assisted by a Politico-Military Group, a Committee for Civilian Aspects of Crisis Management, and the Military Committee (MC) and Military Staff

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Following the entry into force of the Treaty of Amsterdam, the Helsinki European Council of December 1999 approved the establishment of COPS. The Committee was originally temporary but became a standing body after the Nice European Council of December 2000.

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European Investment Bank (EIB)

Set up by the Treaty of Rome, the European Investment Bank is the European Union's financial institution. Its task is to contribute to economic, social and territorial cohesion through the balanced development of the EU territory.

The EIB's shareholders are the 27 Member States of the European Union. The bank is supervised by the Board of Governors, which comprises the 27 Finance Ministers. It has legal personality and is financially independent. It provides long-term financing for practical projects, the economic, technical, environmental and financial viability of which is guaranteed. It grants loans essentially from resources borrowed on capital markets, to which is added shareholders' equity. Between 1994 and 1999 the transport, telecommunications, energy, water, education and training sectors were the main beneficiaries.

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In March 2000 the Lisbon European Council called for a strengthening of support for small and medium-sized enterprises (SMEs). The EIB Group, which comprises the EIB and the European Investment Fund (EIF), was thus created with a view to boosting European economic competitiveness. Through the Innovation 2000 initiative, it fosters entrepreneurship, innovation and the optimal utilisation of human resources by granting SMEs medium-term loans and bank guarantees, and by financing venture capital activities.

Outside the European Union the EIB supports the pre-accession strategies of the candidate countries and of the Western Balkans. It also manages the financial dimension of the agreements concluded under European development aid and cooperation policies. In this connection, it is active in the Mediterranean countries and in the African, Caribbean and Pacific (ACP) countries.

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Trans-European Networks (TEN)

The function of Trans-European Networks is to create a modern and effective infrastructure to link European regions and national networks. They are essential to proper operation of the common market, since they ensure free movement of goods, persons and services.

Title XVI of the Treaty on the Functioning of the EU provides the legal basis for Trans-European Networks, which exist in three sectors of activity:

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Trans-European Transport Networks (TEN-T) cover road and intermodal transport, waterways and seaports, and the European high-speed railway network. Intelligent transport management systems also fall into this category, as does Galileo, Europe's satellite radio navigation system.
Trans-European Energy Networks (TEN-E) cover the electricity and natural gas sectors. They help to create a single energy market and contribute to security of supply.
Trans-European Telecommunications Networks (eTEN) have as their aim the deployment of telecommunication networks based services. They focus strongly on public services and are at the very heart of the initiative "eEurope -- An Information Society for All".
The TEN budget heading is supplemented by contributions from the European Regional Development Fund (ERDF), the Cohesion Fund, the European Investment Bank (EIB) and the European Investment Fund (EIF).

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European Employment Strategy (EES)

Since the Treaty of Amsterdam added a new Title VIII on Employment to the Treaty establishing the European Community, coordination of Member States' employment policies has become a Community priority.

It was on the basis of these new provisions that the Luxembourg European Council, held in November 1997, launched the European Employment Strategy (EES), also known as the "Luxembourg process".

The EES is an annual programme of planning, monitoring, examination and readjustment of policies put in place by Member States to coordinate the instruments they use to tackle unemployment. The Strategy is based on four components:

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Employment Guidelines: common priorities for Member States' employment policies, drawn up by the Commission;
National Action Plans (NAPs) for employment: implementation of the common Guidelines at national level;
Joint Employment Report: summary of the National Action Plans, to be used as a basis for drawing up the following year's Guidelines;
Recommendations: the Council adopts country-specific recommendations by a qualified majority.
In 2005 the Lisbon Strategy was revised in order to focus more closely on developing strong, sustainable growth and creating more and better jobs.

This re-launch of the Lisbon Strategy led to a thorough review of the EES, implementing the new process in July 2005, with the European Council's approval of the Integrated Guidelines for Growth and Jobs.