Lecture 3

Institutions of the EU

Lecture 3 Overview

• Overview of EU institutions and their functions

• Discussion of institutional accountability

• Examination of levels of institutional decision-making

The EU Institutional Framework

• Article 13 of the Treaty on European Union (TEU) outlines the following key institutions:

  • European Council

    • Role: Provides political direction and represents the EU in foreign affairs.

    • Represents: Member States

  • Council of the European Union

    • Role: Implements policies and represents member states.

    • Represents: Member States

  • European Commission

    • Role: Executive body that initiates legislation and represents the EU exteriorly.

    • Represents: The Union

  • European Parliament

    • Role: Legislative body representing citizens.

    • Represents: Union Citizens

  • Court of Justice of the EU

    • Role: Judicial authority interpreting EU law.

    • Represents: The Union

  • European Central Bank

    • Role: Manages monetary policy in the Eurozone.

    • Represents: Union

  • Court of Auditors

    • Role: Supervises financial management of EU funds.

    • Represents: Union

Institutional Functions and Representation

• Representation of Interests

  • Intergovernmental Institutions (e.g., European Council, Council of the EU): Represent member states.

  • Supranational Institutions (e.g., European Commission, ECJ, ECB, European Parliament): Represent the interests of the Union as a community.

• Comparison to National Government: Concept of "Mixed Government" as defined by Majone.

Allocation of Powers

• Executive Powers:

  • European Council: Political direction and representation in foreign affairs.

  • Council of the EU: Implements policies and consists of ministers from relevant areas.

  • European Commission: Initiates legislation, implements policies, and represents the EU externally.

  • European Central Bank: Oversees monetary policy in the Eurozone and supervises major banks.

• Legislative Powers:

  • European Parliament & Council of the EU: Bi-cameral legislature that examines and modifies legislation but cannot initiate legislation.

• Judicial Powers:

  • Court of Justice of the EU: Interprets EU law and resolves conflicts between member states and EU institutions.

  • Court of Auditors: Reviews revenue and expenses of the EU and provides reports to relevant bodies.

Individual Institutions

1. The European Council

• Comprises heads of state and government from member states.

• Holds the largest political authority among EU institutions.

• Functions include:

  • Setting the policy agenda

  • Crisis management

  • Key appointments and treaty revisions

2. The Council (of the EU)

• Comprises ministers from member states focusing on specific policy areas.

• Acts as a legislator and enforcer of policies with regards to various domains such as Foreign Affairs and Economic Affairs.

• Supported by a large bureaucracy and expert community.

3. The European Commission

• A supranational institution that works independently of member states’ influences.

• Composed of a College of Commissioners from each member state, focusing on EU interests.

• Makes decisions by consensus or majority vote and has a significant administrative structure with 32,000 employees.

4. The European Parliament

• Only directly elected EU institution with 705 members serving five-year terms.

• Powers include:

  • Budgetary oversight

  • Legislative scrutiny

  • Appointments and dismissals of Commission members

• Operates in two locations: Strasbourg (for plenary sessions) and Brussels (for committee work).

5. The Court of Justice of the EU

• Judges appointed by member states' governments and reviewed for six-year terms.

• Key functions include:

  • Reviewing legality of EU acts

  • Addressing infringements of EU law

  • Providing preliminary rulings on EU law requests from member state courts.

• Located in Luxembourg, with approximately 2,000 employees.

6. The European Central Bank

• Responsible for Eurozone monetary policy and stability.

• Conducts foreign exchange operations and manages Eurozone reserves.

• Comprised of a Governing Council that meets bi-monthly, with a workforce of 3,500 employees based in Frankfurt.

7. The European Court of Audits

• Responsible for evaluating EU revenue and spending efficacy.

• Conducts audits in conjunction with the European Commission and Parliament.

• Functions include recommending improvements in financial management and operating from its base in Luxembourg, employing 1,000 staff.

Conclusion

• Institutions vary in function and representation within the EU context, balancing between member-state interests and overarching Union goals.