Institutions and Institutional Balance

Institutions and Institutional Balance in the European Union

Unique Institutional Set Up of the EU

  • The European Union (EU) possesses a unique institutional structure.

    • It is not classified as an international organization or a federation.

    • The EU's nature is termed "sui generis," meaning it has its distinct characteristics.

    • Member States delegate specific powers to the Union.

    • Decisions are made by various institutions with the consent of Member States.

Key EU Institutions

  • The principal EU institutions are detailed in Article 13 TEU, which establishes seven institutions:

    1. The European Parliament (EP)

    2. The Council of the EU

    3. The European Council

    4. The European Commission

    5. The Court of Justice of the European Union (CJEU)

    6. The European Central Bank (ECB)

    7. The Court of Auditors (COA)

Competences of the Union

  • The competences of the EU are outlined in Articles 3, 4, and 6 of the TFEU:

    • Article 3: Exclusive competence of the Union.

    • Article 4: Shared competence with Member States.

    • Article 6: Union plays a supportive, coordinative, or supplementary role.

Separation of Powers vs. Institutional Balance

  • The ideal of separation of powers (executive, legislative, judicial) established by Montesquieu promotes impartiality and independence among branches.

  • However, the EU does not adhere strictly to separation of powers but aims for an "institutional balance."

    • This balance ensures powers among the institutions are managed to produce democratic and transparent decision-making processes.

    • The extent to which the EU can be deemed democratic is a contentious academic topic.

The Institutional Triangle

  • The legislature and executive powers of the EU are vested in:

    1. The European Parliament

    2. The Council of the EU

    3. The Commission

  • The Commission proposes legislation, while the Parliament and Council are responsible for its adoption.

    • The Commission possesses veto power regarding legislative proposals.

    • Implementation of laws is the responsibility of both the Commission and the Member States, with the Commission ensuring compliance.

The Court of Justice of the EU (CJEU)

  • Following the Lisbon Treaty, the term "CJEU" is now used broadly to refer to the judicial system.

  • The Court of Justice serves as the higher court, while the General Court (formerly the Court of First Instance) functions as the lower court.

  • The CJEU also oversees specialized courts and adjudicates:

    • Direct actions

    • Preliminary rulings

Historical Phases of EU Legislative Bodies

  • The lecture outlines the development of legislative powers in three main phases:

    1. Phase A: From the Rome Treaty (1957) to the Single European Act (SEA, 1986)

    2. Phase B: From the SEA to the Treaty of Nice (2003)

    3. Phase C: From the Constitutional Treaty to the Lisbon Treaty (2004 - Present)

Phase A: From Rome to SEA (1957 - 1986)

  • The initial principle was "The Commission Proposes, the Council Disposes."

    • Legislative power primarily resided with the Council and the Commission, with the Commission acting akin to a government.

  • Growing tensions arose between the Council and the Commission, particularly regarding the understanding of the EEC:

    • France, under President de Gaulle, perceived it as intergovernmental.

    • Other Member States viewed it as a supranational entity, with institutional supremacy.

Luxembourg Accords

  • A compromise during political tensions led to the Luxembourg Accords:

    • Introduced an agreement to continue discussions until unanimity is achieved on critical national interests, even where voting typically required Qualified Majority Voting (QMV).

    • This reaffirmed a shift back to intergovernmentalism.

Birth of COREPER

  • Creation of the Committee of Permanent Representatives (COREPER) in 1958:

    • Required for in-depth understanding of legislative proposals from the Commission.

    • Officially recognized in 1967 via the Merger Treaty.

    • COREPER is composed of senior national officials and operates at two levels (COREPER I and II).

COREPER Structure and Function

  • COREPER I: Handles environmental issues, social affairs, and the internal market.

  • COREPER II: Manages economic and financial affairs and external relations.

  • COREPER prepares legislative discussions, forming a political control mechanism over Working Parties.

Comitology

  • Comitology was developed as a control mechanism by Member States over the adoption of subsidiary legislation by the Commission.

  • This system featured committees with national representatives, allowing the Council to influence the legislative process before subsidiary legislation took effect.

  • The emergence of Comitology derived from the unclear allocation of responsibility for secondary legislation in the Rome Treaty and was particularly vital in the Common Agricultural Policy (CAP).

  • Notably removed by the Lisbon Treaty, replaced by provisions in Article 290 TFEU.

Judicial Activism of the CJEU (1970s - 1980s)

  • During political stagnation marked by unfulfilled Treaty objectives, the CJEU engaged in "judicial activism":

    • Developed doctrine in areas like the Doctrine of Supremacy and Direct Effect.

    • By solidifying these doctrines, the CJEU functioned as a law-making entity, furthering Treaty objectives despite legislative standstills.

Phase B: SEA to Nice (1986 - 2003)

  • This period was characterized by the dynamism of legislative processes and the desire to complete the internal market.

  • The European Parliament gained real legislative power, transforming the cooperation procedure to a more robust co-decision procedure:

    • EP's increased powers allowed it to suggest amendments and block legislation with support from the Council.

  • The co-decision procedure established that both the EP and the Council must jointly adopt legislation proposed by the Commission.

Phase C: Constitutional Treaty & Lisbon Treaty (2004 - 2009)

  • The Constitutional Treaty was signed in 2004 but failed ratification, leading to the Lisbon Treaty:

    • The Lisbon Treaty became effective in 2009 and maintained many provisions of the Constitutional Treaty.

    • It renamed the co-decision procedure to the ordinary legislative procedure, extending it to over 40 new policy areas.

  • The ordinary legislative procedure enhances democratic legitimacy, fostering dialogue between the EP, Council, and Commission.

European Parliament (EP)

  • Initially designated as simply the Assembly under the Treaty of Rome, the EP was not directly democratic until 1979 when direct elections were introduced.

    • Before 1979, it had a consultative and supervisory role.

  • Current composition:

    • 705 Members of the European Parliament (MEPs), directly elected every five years, reflecting populations approximately in proportion to their Member States.

  • Specific distribution of MEPs post-Brexit led to a reduced total number of seats.

Powers and Functions of the EP

  • The EP possesses three core roles:

    1. Debating and passing European laws collaboratively with the Council.

    2. Scrutinizing EU institutions to ensure democratic processes.

    3. Approving the EU budget.

  • Article 14(1) TEU outlines its joint legislative and budgetary functions, alongside political control and consultation roles.

  • The EP's consent is required for various decisions, enhancing its legislative influence significantly.

  • Judicial review measures empower the EP to defend its prerogatives, as seen in prominent cases like Les Verts and the Chernobyl Case.

Supervisory and Budgetary Powers

  • The EP's supervisory role involves oversight of the Commission, establishing committees of inquiry, and petitioning processes.

  • Financial responsibilities are laid out in Article 314 TFEU, whereby the EP monitors budgetary spending and evaluates previous year budgets.

  • The EP exercises a decisive role in appointing the Ombudsman, responsible for investigating maladministration by EU institutions.

Legislative Process and Procedures

  • The ordinary legislative procedure allows both the EP and Council to collaborate in adopting legislation, requiring majority votes in both entities.

  • The legislative process includes first readings, second readings, and possible conciliation phases if initial agreements are not reached.

The European Commission

  • Article 17 TEU establishes the Commission with 27 Commissioners, independent from national interests and acting on behalf of the EU.

  • The President of the Commission is elected by the EP, following a proposal from the European Council.

  • The Commission's decision-making is guided by presidential direction, with votes taken by majority.

Powers of the Commission

  • The Commission functions with multiple powers, including:

    1. Legislative initiator

    2. Executive

    3. Administrative

    4. Quasi-judicial

  • Each year, the Commission outlines its legislative agenda and acts as a critical mechanism for integration through its right of initiative.

  • Legislative actions require Commission proposals as mandated by Article 17(2) TEU.

The Council of the EU

  • The Council of the EU, distinct from the European Council, is composed of national ministers from Member States and is pivotal in adopting laws and coordinating policies.

  • Numerous configurations exist, such as the Foreign Affairs Council and ECOFIN, each focusing on specific policy areas.

  • Council operations include structured voting tailored to the nature of issues discussed.

Voting Procedures and Decision-Making

  • Decisions are reached via voting types: simple majority, qualified majority, and unanimity based on the topic at hand, with the ordinary legislative procedure typically employing qualifying majority votes.

Conclusion

  • All EU institutions embody unique characteristics, each contributing distinctively to decision-making processes.

  • Inter-institutional agreements augment power structures rooted in Treaties, showcasing the evolving landscape of EU governance.

  • Ultimately, the EP has emerged as a leading actor in legislative procedures, gaining powers previously exclusive to the Council.

This comprehensive overview addresses the intricacies of EU institutions and their development over time. Dr. Jelena Agranovska can be reached at jelena.agranovska@um.edu.mt for further inquiries.