European Union notes

The European Union: A political & economic union of certain countries in Europe. 27 member states.

GOALS of the EU

  • Promote peace, its values & wellbeing of all citizens

  • Offer freedom, security & justice without internal borders

  • Sustainable development based on balanced economic growth, price stability

  • Combat discrimination

  • Establish an economic and monetary union with euro currency

VALUES of the EU

  • Human rights

  • Freedom

  • Equality

  • Rule of law

The EU Institutions:

European Commission

  • Based in Brussels, Belgium

  • Made up of 27 commissioners, one from each member state of the EU

  • EU’s politically independent executive arm

  • Responsible for drawing up proposals for new European Legislation

  • Irish commissioner is Mairead McGuinness

  • Makes proposals for European laws

  • Ensures EU legislation is applied by all member states

  • Manages policies & annual budget

The Council of the European Union

  • Main decision making body of the EU

  • The council consists of one Government Minister from every Member State

  • Just one council, but different groups of Ministers meet depending on what topic is being discussed

European Parliament

  • EU’s law making body

  • Directly elected by EU voters every 5 years

  • Has legislative & supervisory responsibilities

  • Legislative:

  1. Passing EU laws

  2. Deciding on international agreements

  3. Deciding on enlargements

  • Supervisory:

  1. Democratic scrutiny of all EU institutions

  2. Electing the Commission President & approving the Commission as a body

  3. Examining citizens petitions & setting up inquiries

  4. Discussing monetary policy with the European Central Bank

The Court of Auditors (ACCOUNTANTS)

  • Headquarters in Luxembourg

  • Composed on 27 members (one from each member state)

  • Each member suggests a candidate who is appointed by the Council of the EU

  • Members are independent and have experience in the field of audit pf public finances

  • Main task is to audit the accounts and oversee the implementation of the budgets of the institutions of the EU

  • Aims to improve financial management of EU money and to report to EU citizens how it is used

  • Draws up annual report at the end of the year

The European Court of Justice (ECJ)

  • Ensures that European law is implemented & applied in the same way in every member state

  • Situated in Luxembourg

  • The judges’ independence must be beyond doubt

  • Sits and hears cases all year round

  • Upholds the Treaties & ensures European law is interpreted and applied in the same way across the EU through various forms of legal action

The EU decision making process

Involves three main institutions:

  • The European Commission

  • The Council of the European Union

  • The European Parliament

Step one:
The EU Commission proposes a new law

Step two:

The new law is discussed by the European Parliament. They debate the pros and cons of the proposed legislation

Step three:

New law is passed back to the EU commission. They take on board any useful amendments. They then redraft the proposed bill

Step four:

The proposed legislation is then passed off to the EU Council of Ministers (the main decision making body of the EU). The law is either rejected or accepted

If the legislation is accepted, it may be implemented.

Regulations:

A binding legislative act. Must be applied in its entirety across the EU. Takes immediate effect

Directives:

A legislative act that sets out a goal that all EU countries must achieve. It is up to the individual countries to devise their own laws on how to achieve these goals. E.g. EU waste management - suggestion of plastic bag tax. Introduced 8 years later

Decisions:

Binding on those who it is addressed (E.g. a country or company). It is directly applicable

Lobbying:

The main means of influencing EU affairs. A deliberate action to put pressure on an institution to change something

EU Common Policies

An agreed approach is adopted in that area of the EU’s activities

Reasons - ensures a common approach in all countries, ensures uniform development of the EU, better living standards across EU

Single European Market

Removes barriers

Allows free movement of:

  • Goods

  • Services

  • Capital

  • Labour

Main effects on Irish Business

  • Removal of physical barriers

  • Lower administration costs

  • Single Banking Licence

  • Access to EU Structural and Cohesion Funds

  • Attraction of Non-EU Multinational Companies

Ireland & Economic and Monetary Union

Main advantages:

Reduction in transaction costs and end to destabilising currency shifts within Europe.

Elimination of these transaction costs benefit a country like Ireland as our business export much of our output to the EU

Price Transparency

A single currency highlights price differential. Business sourcing raw materials can readily identify the best bargains throughout the EU

Price Stability

ECB has a monetary policy that focuses on price stability.