The Background, Condition and Maine Institution of the European Union

The Background, Condition and Maine Institution of the European Union  

Basic of the European Union

The EU is a unique economic and political partnership between 28 European countries that together cover much of the continent. The EU was created in the aftermath of the Second World War. The first steps were to foster economic cooperation: the idea being that countries that trade with one another become economically interdependent and so more likely to avoid conflict. The result was the European Economic Community (EEC), created in 1958, and initially increasing economic cooperation between six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands. Since then, a huge single market has been created and continues to develop towards its full potential.

Background and the formation of European Union

Following the two devastating World Wars in the first half of the 20th century, a number of European leaders in the late 1940s became convinced that the only way to establish a lasting peace was to reconcile the two chief belligerent nations - France and Germany - both economically and politically. In 1950, the French Foreign Minister Robert SCHUMAN proposed an eventual union of all Europe, the first step of which would be the integration of the coal and steel industries of Western Europe. The following year, the European Coal and Steel Community (ECSC) was set up when six members, Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands, signed the Treaty of Paris.
The ECSC was so successful that within a few years the decision was made to integrate other elements of the countries' economies. In 1957, envisioning an "ever closer union," the Treaties of Rome created the European Economic Community (EEC) and the European Atomic Energy Community (Euratom), and the six member states undertook to eliminate trade barriers among themselves by forming a common market. In 1967, the institutions of all three communities were formally merged into the European Community (EC), creating a single Commission, a single Council of Ministers, and the body known today as the European Parliament. Members of the European Parliament were initially selected by national parliaments, but in 1979 the first direct elections were undertaken and have been held every five years since.
In 1973, the first enlargement of the EC took place with the addition of Denmark, Ireland, and the United Kingdom. The 1980s saw further membership expansion with Greece joining in 1981 and Spain and Portugal in 1986. The 1992 Treaty of Maastricht laid the basis for further forms of cooperation in foreign and defense policy, in judicial and internal affairs, and in the creation of an economic and monetary union - including a common currency. This further integration created the European Union (EU), at the time standing alongside the European Community. In 1995, Austria, Finland, and Sweden joined the EU/EC, raising the membership total to 15.
A new currency, the euro, was launched in world money markets on 1 January 1999; it became the unit of exchange for all EU member states except Denmark, Sweden, and the United Kingdom. In 2002, citizens of those 12 countries began using euro banknotes and coins. Ten new countries joined the EU in 2004 - Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. Bulgaria and Romania joined in 2007 and Croatia in 2013, bringing the current membership to 28.
In an effort to ensure that the EU could function efficiently with an expanded membership, the Treaty of Nice (signed in 2000) set forth rules aimed at streamlining the size and procedures of EU institutions. An effort to establish a "Constitution for Europe," growing out of a Convention held in 2002-2003, foundered when it was rejected in referenda in France and the Netherlands in 2005. A subsequent effort in 2007 incorporated many of the features of the rejected Constitution while also making a number of substantive and symbolic changes .The new treaty, initially known as the Reform Treaty but subsequently referred to as the Treaty of Lisbon, sought to amend existing treaties rather than replace them. The treaty was approved at the EU intergovernmental conference of the 27 member states held in Lisbon in December 2007, after which the process of national ratifications began. In October 2009, an Irish referendum approved the Lisbon Treaty (overturning a previous rejection) and cleared the way for an ultimate unanimous endorsement. Poland and the Czech Republic signed on soon after. The Lisbon Treaty, again invoking the idea of an "ever closer union," came into force on 1 December 2009 and the European Union officially replaced and succeeded the European Community.

The Condition of Membership for European Union
The EU operates comprehensive approval procedures that ensure new members are admitted only when they can demonstrate they will be able to play their part fully as members, namely by:

• complying with all the EU's standards and rules
• having the consent of the EU institutions and EU member states
• having the consent of their citizens – as expressed through approval in their national parliament or by referendum.

Membership criteria – Who can join?

The Treaty on the European Union states that any European country may apply for membership if it respects the democratic values of the EU and is committed to promoting them.
The first step is for the country to meet the key criteria for accession. These were mainly defined at the European Council in Copenhagen in 1993 and are hence referred to as 'Copenhagen criteria'. Countries wishing to join need to have:

• stable institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;
• a functioning market economy and the capacity to cope with competition and market forces in the EU;
• the ability to take on and implement effectively the obligations of membership, including adherence to the aims of political, economic and monetary union.

The EU also needs to be able to integrate new members.
In the case of the countries of the Western Balkans additional conditions for membership, were set out in the so-called 'Stabilization and Association process', mostly relating to regional cooperation and good neighborly relations.

Purpose of European Union:

There are following reasons for the coming together of European States to form international Organization for their regional co-operation:

1.      The need for co-operation among European States was brought about by increased interne relationship those States. It was felt necessary that co-operation should develop among States in all possible areas of State-interaction, and this can be developed through inter-relationship among them.

2.      The feeling of European States that rapid economic reconstruction was necessary to make European economy competitive on international level, was the second important reason for their co-operation.

3.      The third important reason for the establishment of European Organization has been the ideological appeal of European unity, in the form of United States of Europe which emerged to replace the independent sovereign States.

4.      Lastly, the fear of West European States that that might be aggressor any time by Soviet Union, led to the establishment of Western military alliances for collective self defense.

Objective of the European Union

The Union’s objectives can be read in the Lisbon Treaty Art. 3 TEU and include, among others:

• the promotion of peace and the well-being of the Union´s citizens
• an area of freedom, security and justice without internal frontiers
• sustainable development based on balanced economic growth and social justice
• a social market economy - highly competitive and aiming at full employment and social progress
• a free single market
• The Union shall also combat social exclusion and discrimination and promote social justice and protection, equality between women and men, solidarity between generations and the protection of children’s' rights.
• Fighting against social exclusion and discrimination. Promoting social justice and protection, equality between women and men, solidarity between generations and, protection of children’s rights.
•  Promoting economical, social and territorial cohesion and solidarity among Member States.

The European Union also establishes a set of values in Article 2 TEU. The EU Court can take values and aims into account when it decides on case law.

Notes: The first and most important EU objective was the establishment of a common market. Subsequent treaties included the aims of establishing: an Economic and Monetary Union, a Common Foreign and Security Policy, and, an area of Justice and Home Affairs. The Lisbon Treaty includes an even wider range of objectives.

Main Institution of European Union

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:

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. 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.
• 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. The distinction between 'compulsory' and 'non compulsory' expenditure is abandoned. The European Parliament is now responsible for the adoption of the entire budget together with the Council;
• Enable MEPs to give their consent on a wide range of international agreements negotiated by the European Union such as international trade agreements;
• Introduces new rights to be informed on the activities of the European Council, the rotating Council presidency and the Union's external action;
• Gives the European Parliament the right to propose changes to the Treaty;
• Improves its power of scrutiny by giving it the responsibility to elect the President of the Commission, and approve the Commission members by a vote of consent.

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.

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.
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 programs . 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 programs for their 18-month period in office.

Court of Justice of the European Union

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. A panel consisting of seven persons from European or national judicial institutions is tasked with providing an opinion on the nominations made by governments for the posts of Judge or Advocate-General (Article 255 of the Treaty on the Functioning of the European Union (TFEU)).

Every three years the Judges and Advocates-General are partially replaced.

The Judges of the Court elect the President of the Court from among their number for a term of three years. The President manages the work and services of the Court and chairs the hearings and deliberations of the larger formations of the court.

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).

The Court may sit in chambers (of three to five Judges), in a Grand Chamber (thirteen Judges) or as a full Court.

The Advocates-General assist the Court. Their duty is to present with complete impartiality and independence a legal opinion, called “submissions”, on cases referred to them.

The Registrar is the Secretary-General of the institution and manages the services of that institution under the authority of the President of the Court.

The Court of Justice establishes its Rules of Procedure. Those Rules require the approval of the Council by qualified majority.

The Statute of the Court may be amended by a co-decision of the European Council and the Parliament at the request of the Court or the Commission.

Court of Auditors

The Court of Auditors, based in Luxembourg, was created by the Brussels Treaty in 1975. It has been considered a European institution since the adoption of the Maastricht Treaty in 1992. The Court of Auditors acts in complete independence.
The Court of Auditors is composed of one national from each Member State. Its members are appointed for a mandate of six years (renewable) by a qualified majority of the Council after consulting the European Parliament. Between them they appoint the President of the Court of Auditors, whose mandate is for three years (renewable).
The Court checks the revenue and expenditure of the European Union (and anybody created by the Community) for legality and regularity and ensures that its financial management is sound. It also supplies the European Parliament and the Council with a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions. It draws up an annual report published in the Official Journal at the end of each budgetary year.
Under the Treaty of Amsterdam, the Court of Auditors also has the power to report any irregularities to the European Parliament and the Council, and its audit responsibilities have been extended to Community funds managed by outside bodies and by the European Investment Bank. However, it does not have the power to impose penalties. If it discovers fraud or irregularities, it must inform the European Anti-Fraud Office.
Under the Treaty of Nice, the Court is also able to establish internal chambers to adopt certain categories of report or opinion.

European Central Bank (ECB)

Founded on 30 June 1998 in Frankfurt, the European Central Bank (ECB) is responsible for implementing monetary policy in the Euro zone. Its main task is to maintain price stability in the Euro zone 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).

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 authorize 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 European Parliament and the Governing Board of the European Central Bank. Their term of office is eight years and is not renewable.

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 “commentaries” issues relating to justice and internal affairs and assigns the Commission a right of initiative in these areas, which it shares with Member States.
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 programmers. 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 multilingual 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 specialized departments whose staff are divided mainly between Brussels and Luxembourg.