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© R
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Æ
European Central Bank, which is respon-
sible for European monetary policy;
Æ
European Ombudsman, which investi-
gates complaints about maladministration
by EU institutions and bodies;
Æ
European Data Protection Supervisor,
which safeguards the privacy of your per-
sonal data.
In addition, specialised agencies handle
certain technical, scientifi c or management
tasks.
The powers and responsibilities of the EU
institutions, and the rules and procedures they
must follow, are laid down in the Treaties on
which the EU is founded. The Treaties are
agreed by the presidents and prime ministers
of all the EU countries and then ratifi ed by
their parliaments.
The following chapters describe the Treaties,
the EU institutions and the other bodies and
agencies, explaining what each entity does
and how they interact.
The signing ceremony of the six-nation Treaty of Rome in 1957.
© EC
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The EU is founded on four Treaties:
Æ
The Treaty establishing the European Coal
and Steel Community (ECSC), which was
signed on 18 April 1951 in Paris, came into
force on 23 July 1952 and expired on 23
July 2002.
Æ
The Treaty establishing the European
Economic Community (EEC), which was
signed on 25 March 1957 in Rome and
came into force on 1 January 1958. It is
often referred to as ‘the Treaty of Rome’.
Æ
The Treaty establishing the European
Atomic Energy Community (Euratom),
which was signed in Rome along with
the EEC Treaty.
Æ
The Treaty on European Union (EU),
which was signed in Maastricht on
7 February 1992, and came into
force on 1 November 1993. It is often
referred to as ‘the Maastricht Treaty’.
The ECSC, EEC and Euratom Treaties
created the three ‘European Communities’,
i.e. the system of joint decision-making on
coal, steel, nuclear power and other major
sectors of the member states’ economies.
The common institutions set up to manage
this system were merged in 1967, resulting
in a single Commission and a single Council
of Ministers.
The EEC, in addition to its economic role,
gradually took on a wide range of responsi-
bilities, including social, environmental and
regional policies. Since it was no longer a
purely economic community, the fourth
Treaty (Maastricht) renamed it simply ‘the
European Community’ (EC). As the ECSC
Treaty approached expiry in 2002, respon-
sibilities for coal and steel were progressively
merged into other Treaties.
At Maastricht, the member state governments
also agreed to work together on foreign and
security policy, and in the area of ‘justice and
home affairs’. By adding this intergovernmen-
tal cooperation to the existing Community
system, the Maastricht Treaty created a new
structure with three ‘pillars’, which is political
as well as economic. This is the European
Union (EU).
The Treaties are the basis for everything
the EU does. They have been amended
each time new member states have joined.
From time to time the Treaties have also
been amended to reform the European
Union’s institutions and to give it new areas of
The Treaties
© EC
The European Union is founded on its Treaties. Its three
‘pillars’ represent different policy areas with different
decision-making systems.
THE TREATIES
THE EUROPEAN UNION
Community
domain
(most
common
policy
areas)
Common
foreign and
security
policy
Police and
judicial
cooperation
in criminal
matters
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© Picture-alliance/dpa/Zucc
hi
responsibility. This is always done by a special
conference of the EU’s national governments
(an ‘intergovernmental conference’ or IGC).
Key intergovernmental conferences resulted
in:
Æ
The Single European Act (SEA), which was
signed in February 1986 and came into
force on 1 July 1987. It amended the EEC
Treaty and paved the way for completing
the single market;
Æ
The Treaty of Amsterdam, which was
signed on 2 October 1997 and came into
force on 1 May 1999. It extended the
pooled sovereignty to more areas involving
more citizens’ rights, and closer interaction
on social and employment policies;
Æ
The Treaty of Nice, which was signed on
26 February 2001 and came into force
on 1 February 2003. It further amended
the other Treaties, streamlining the EU’s
decision-making system so it could con-
tinue to work effectively even after further
enlargements;
Æ
The draft Constitutional Treaty, which was
agreed and signed in October 2004, but
has not come into force, because it was
not ratifi ed by all EU countries.
Æ
The Reform Treaty, which was agreed in
principle in 2007, but will not come into
force until it has been ratifi ed by all mem-
ber states.
© EC
A clean environment is just one area of many where EU member states have agreed
that pooling sovereignty makes sense.
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How the EU
takes decisions
Decision-making at European Union level in-
volves various EU institutions, in particular:
Æ
the European Parliament (EP),
Æ
the Council of the European Union, and
Æ
the European Commission.
In general, it is the European Commission
that proposes new legislation, but it is the
Council and Parliament that pass the laws. In
some cases, the Council can act alone. Other
institutions also have roles to play.
The main forms of EU law are directives and
regulations. Directives establish a common
aim for all member states, but leave it to na-
tional authorities to decide on the form and
method of achieving it. Normally, member
states are given one to two years to imple-
ment a directive. Regulations are directly
applicable throughout the EU as soon as
they come into force without further action
by the member state.
The rules and procedures for EU decision-
making are laid down in the Treaties. Every
proposal for a new European law must be
based on a specifi c Treaty article, referred
to as the ‘legal basis’ of the proposal. This
determines which legislative procedure must
be followed. The three main procedures are
‘codecision’, ‘consultation’ and ‘assent’.
1. Codecision
Codecision is the procedure now used for
most EU law-making. In the codecision pro-
cedure, Parliament shares legislative power
equally with the Council.
If Council and Parliament cannot agree on a
piece of proposed legislation, there will be
no new law. The procedure provides for two
successive ‘readings’ in each institution. If an
agreement is reached in these readings, the
law can be passed. If not, it will be put before
a conciliation committee, composed of equal
numbers of Council and Parliament represent-
atives. Once this committee has reached an
agreement, the agreed text is sent again to
Parliament and the Council so that they can
fi nally adopt it as law. Conciliation is becom-
ing increasingly rare. Most laws passed in
codecision are, in fact, adopted either at the
fi rst or second reading as a result of good
cooperation between the three institutions.
The diagram overleaf shows the procedure
in greater detail. For further information,
go to
ec.europa.eu/codecision
© EC
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19. Council approves amended common position
1a. ESC opinion,
CoR opinion
1. Proposal from the Commission
2. First reading by the EP opinion
4. First reading by the Council
3. Amended proposal
from the Commission
5. Council approves all the
EP's amendments
7. EP has approved
the proposal without
amendments
9. Common position
of the Council
10. Communication
from the Commission
on common position
11. Second reading by the EP
12. EP approves
common position or
makes no comments
14. EP rejects
common position
16. EP proposes
amendments to
common position
17. Commission
opinion on EP's
amendments
6. Council can adopt the
act as amended
8. Council can
adopt the act
18. Second reading by the Council
21. Council does not approve the
amendments to the common position
22. Conciliation Committee is convened
20. Act adopted as amended
23. Conciliation procedure
24. Conciliation Committee agrees on a joint text
29. Conciliation Committee does not
agree on a joint text
25. Parliament and Council adopt the
act concerned in accordance with the
joint text
27. Parliament and
Council do not approve
the joint text
26. Act is adopted
28. Act is not adopted
30. Act is not adopted
15. Act is deemed not to
be adopted
13. Act is deemed to
be adopted
(i) by a qualified majority if
the Commission has delivered
a positive opinion
(ii) unanimously if the
Commission has delivered
a negative opinion
The codecision procedure
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