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How the European Union works

A citizens guide to the EU institutions

European Union

European documentat ion


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Published in all the official languages of the European Union: Danish, Dutch, English, Finnish, French, German, Greek,Italian, Portuguese, Spanish and Swedish and in Czech, Estonian, Hungarian, Lithuanian, Latvian, Maltese, Polish,Slovak and Slovene.

European CommissionDirectorate-General for Press and CommunicationPublicationsB-1049 Bruxelles/Brussel

Manuscript completed in June 2003

Cover illustration: European Parliament

Cataloguing data can be found at the end of this publication

Luxembourg: Office for Official Publications of the European Communities, 2003

ISBN 92-894-5283-8

European Communities, 2003

Reproduction is authorised.

Printed in Belgium

PRINTEDON WHITECHLORINE-FREEPAPER


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How the European Union worksA citizens guide to the EU institutions


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Contents

Introducing the European Union

Treaties and decision-making

The European Parliament: voice of the people

The Council of the European Union: voice of the member states

The European Commission: promoting the common interest

The Court of Justice: upholding the law

The European Court of Auditors: getting value for your money

The European Central Bank: managing the euro

The European Economic and Social Committee:voice of civil society

The Committee of the Regions: voice of local government

The European Investment Bank: financing EU projects

The European Ombudsman: investigating your complaints

Agencies

Looking to the future

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5

10

14

20

25

28

30

32

34

36

38

40

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Introducing the European Union

n just half a century of existence, the European Union (EU) has achievedremarkable things. It has delivered peace between its members and prosperity forits cit izens. It has created a single European currency (the euro) and a front ier-free single market where goods, people, services and capital move around freely.The EU has grown from six to fif teen countries and it is preparing to embrace a

dozen more. It has become a major t rading power, and a world leader in f ieldssuch as environmental protection and development aid.

The EUs success owes a lot to its unique nature and the way it works. For the EUis not a federation like the United States. Nor is it simply an organisation for co-operation between governments, like the United Nations. The countries that makeup the EU (it s member states) remain independent sovereign nat ions but theypool their sovereignty in order to gain a strength and world inf luence none ofthem could have on its own.

Pooling sovereignty means, in practice, that the member states delegate some oftheir decision-making powers to European institut ions they have created, so thatdecisions on specific matters of joint interest can be made democratically atEuropean level.

The three main decision-making institut ions are:

the European Parl iament, which represents the EUs cit izens and is directly

elected by them; the Council of the European Union, which represents the individual memberstates;

theEuropean Commission, which seeks to uphold the interests of the Union asa whole.

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This institut ional triangle produces the policies and laws (directives, regulat ionsand decisions) that apply throughout the EU.

The rules and procedures that the institut ions must follow are laid down in the

treaties, which are agreed by the member states presidents and prime ministersand ratif ied by their parliaments.

In principle, it is the Commission that proposes new EU laws but it is theParliament and Council that adopt them.

The Court of Justice upholds the rule of European law, and the Court ofAuditorschecks the financing of the Unions activit ies.

Five other bodies complete the system:

theEuropean Economic and Social Commit teerepresents civil society and thetwo sides of industry;

theCommit tee of the Regionsrepresents regional and local authorit ies;

the European Central Bankis responsible for European monetary policy;

the European Investment Bankfinances EU investment projects;

theEuropean Ombudsmanguards EU cit izens and organisations against mal-administration.

In addition, specialised agencies have been set up to handle certain technical,scientif ic or management tasks.

This booklet offers a comprehensive overview of what each institut ion or agencydoes, and how it works. Its aim is to provide a helpful guide to the EUs present

decision-making system.


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The first three of these treaties created thethree European Communities, i.e. the sys-tem of joint decision-making on coal, steel,nuclear power and other major sectors of themember states economies. The Community

institutions set up to manage this system were merged in 1967, resulting in a singleCommission and a single Council.

The EEC, in addition to itseconomic role, graduallytook on a wide range ofresponsibilities includingsocial, environmental andregional policies. Since it

was no longer a purelyeconomic community,the fourth Treaty(Maastricht) renamed itsimply the EuropeanCommunity (EC).

The Maastricht Treatyalso introduced newforms of co-operationbetween the member

state governments forexample on defence andin the area of justice and

home affairs. By adding this intergovern-mental co-operation to the existingCommunity system, the Maastricht Treatycreated a new structure with three pillarswhich is political as well as economic. This is

the European Union (EU).

The EU is founded on four treaties:

TheTreaty establishing the European Coal and Steel Community(ECSC), which was signedon 18 April 1951 in Paris, came into force on 23 July 1952 and expired on 23 July 2002;

TheTreaty establishing the European Economic Community(EEC), which was signed on 25March 1957 in Rome and came into force on 1 January 1958;

The Treaty establishing the European Atomic Energy Community (Euratom), which was

signed in Rome along with the EEC Treaty. These two treaties are often referred to as theTreaties of Rome. When the term Treaty of Rome is used, only the EEC Treaty is meant;

The Treaty on European Union (EU), which was signed in Maastricht on 7 February 1992,and came into force on 1 November 1993.

Treaties and decision-making

5

The European Union is founded on it s treaties.

It s three pillars represent dif ferent policy areas with

dif ferent decision-making systems

THE EUROPEAN UNION

Community

domain

(most of

the common

policy areas)

Common

Foreign and

Security Policy

Police

and judicial

co-operation

in criminal

matters

THE TREATIES


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The treaties are the foundation for every-thing the European Union does. Wheneverthe treaties have to be reviewed and amend-ed, this is done by a special conference of theEUs national governments (an inter-gov-

ernmental conference or IGC).

The treaties have been amended each timenew member states have joined. Moreover,every decade or so, the treaties have beenamended to reform the EU institutions andgive them new areas of responsibility.

The Single European Act (SEA) was signedin February 1986 and came into force on 1

July 1987. It amended the EEC Treaty andpaved the way for completing the singlemarket.

The Treaty of Amsterdam was signed on2 October 1997 and came into force on1 May 1999. It amended the EU and ECtreaties, giving numbers (instead of letters)to the EU Treaty articles.

The Treaty of Nice, signed on 26 February2001, entered into force on 1 February2003. It further amends the other treaties,streamlining the EUs institutional systemso it can continue to work effectively after

a new wave of member states joins in2004.

Decision-making at European Union levelinvolves various European institutions, inparticular:

the European Commission,

the European Parliament,

the Council of the European Union.

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The ideas that led to t he European Union were first put forward on 9 May 1950 in a speech by Robert

Schuman (French Foreign Minister). So 9 May is celebrated each year as Europe Day.


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Three councils : which is which?

Its easy to become confused about which European body is which especially when verydifferent bodies have very similar names, such as these three councils.

The European CouncilThis means the heads of state and government (i.e. presidents and/or prime ministers) of allthe EU countries, plus the President of the European Commission. The European Council meets,in principle, four times a year to agree overall EU policy and to review progress. It is the high-est-level policymaking body in the European Union, which is why its meetings are often calledsummits.

The Council of the European UnionFormerly known as theCouncil of Ministers,this institution consists of government ministers

from all the EU countries. The Council meets regularly to take detailed decisions and to passEuropean laws. A fuller description of its work is given later in this booklet.

The Council of EuropeThis is not an EU institution at all. It is an intergovernmental organisation which aims(amongst other things) to protect human rights, to promote Europes cultural diversity and tocombat social problems such as racial prejudice and intolerance. It was set up in 1949 and oneof its early achievements was to draw up the European Convention on Human Rights. Toenable citizens to exercise their rights under that Convention it set up the European Court ofHuman Rights. The Council of Europe now has 44 member states, including the 15 EuropeanUnion countries, and its headquarters are the Palais de lEurope in Strasbourg (France).

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The European Commission proposes new legis-lation, but it is the Council and Parliamentthat pass the laws. Other institutions also haveroles to play in specific areas, as will beexplained in greater detail later in this booklet.

The rules and procedures for EU decision-making are laid down in the treaties. Every

European law is based on a specific treatyarticle, referred to as the legal basis of thelegislation.

There are three main procedures for enactingnew EU laws:

consultation;

assent;

co-decision.

The main difference between them is theway Parliament interacts with the Council.Under the consultation procedure,Parliament merely gives its opinion; under

the co-decision procedure,Parliament gen-uinely shares power with the Council. TheEuropean Commission, when proposing anew law, must choose which procedure tofollow. The choice will, in principle, dependon the legal basis of the proposal in otherwords which Treaty article it is based on.

In greater detail, the three procedures are asfollows:

1. Consultation

Under the consultation procedure, theCommission sends its proposal to both theCouncil and Parliament but it is the Councilthat officially consults Parliament and other

bodies such as the European Economic andSocial Committee and the Committee of theRegions, whose opinions are an integral partof the EUs decision-making process.


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In some cases, consultation is compulsorybecause the legal basis requires it and theproposal cannot become law unlessParliament has given its opinion. In othercases consultation is optional and the

Commission will simply suggest that theCouncil consult Parliament.

In all cases, Parliament can:

approve the Commission proposal,

reject it,

or ask for amendments.

If Parliament asks for amendments, theCommission will consider all the changesParliament suggests. If it accepts any ofthese suggestions it will send the Council anamended proposal.

The Council examines the amended proposaland either adopts it as it is or amends it fur-ther. In this procedure, as in all others, if theCouncil amends a Commission proposal itmust do so unanimously.

The areas covered by the consultation proce-dure are:

police and judicial co-operation in criminalmatters;

revision of the treaties;

discrimination on grounds of sex, race orethnic origin, religion or political convic-tion, disability, age or sexual orientation;

EU citizenship;

agriculture; visas, asylum, immigration and other poli-

cies associated with the free movement ofpersons;

transport (where it is likely to have a sig-nificant impact on certain regions);

competition rules;

tax arrangements;

economic policy;

enhanced co-operation i.e. the arrange-ment allowing a group of member states towork together in a particular field even ifthe others do not wish to join in yet.

In some areas, such as taxation, the Councilsdecision has to be unanimous.

2. Assent

The assent procedure means that the Councilhas to obtain the European Parliament'sassent before certain very important deci-sions are taken.

The procedure is the same as in the case ofconsultation, except that Parliament cannotamend a proposal: it must either accept orreject it. Acceptance (assent) requires anabsolute majorityof the vote cast.

The areas covered by the assent procedure are:

specific tasks of the European CentralBank;

amending the statutes of the EuropeanSystem of Central Banks/ European CentralBank;

the Structural Funds and Cohesion Funds;

the uniform electoral procedure for theEuropean Parliament;

certain international agreements;

the accession of new member states.

3. Co-decision

In the co-decision procedure, Parliament andthe Council share legislative power. TheCommission sends its proposal to both insti-tutions. They each read and discuss it twice

in succession. If they cannot agree on it, it isput before a conciliation committee,com-posed of equal numbers of Council andParliament representatives. Commission rep-resentatives also attend the committeemeetings and contribute to the discussion.Once the committee has reached an agree-ment, the agreed text is then sent toParliament and the Council for a third read-ing, so that they can finally adopt it as law.

In greater detail, the procedure is as shownin the diagram:

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The areas covered by the co-decision proce-

dure are: non-discrimination on the basis of

nationality; the right to move and reside; the free movement of workers; social security for migrant workers; the right of establishment; transport; the internal market; employment;

customs co-operation; the fight against social exclusion; equal opportunities and equal treatment; implementing decisions regarding the

European Social Fund;

education;

vocational training; culture; health; consumer protection; trans-European networks; implementing decisions regarding the

European Regional Development Fund; research; the environment; transparency; preventing and combating fraud;

statistics; setting up a data protection advisory

body.

Parliament approves the proposal.

Council may adopt the act.

Council approves all the amendments

of Parliament and adopts the act.

Parliament by an absolute majorityrejects the Council common position.

The act is not adopted.

Parliament approvesthe common position

or takes no action.

The act is adopted.

The Council approves all

the amendments of Parliament.

The act is adopted.

The Conciliation Committee reaches agreement.

Parliament and the Council, by absolute and quali-

fied majority, adopt the act. If one of the two insti-

tutions does not approve, the act is not adopted.

The Conciliation Committee does not

reach agreement.

The act is not adopted.

Parliament examines the common

position of the Council.

Commission opinion

Parliament proposesamendments,

by an absolute majority.

Proposal by the Commission to the European Parliament and the Council

Parliament opinion : Commission amends its proposal

The Council does not approve all the amendments of Parliament.

The Council President, in conjunction with

the President of Parliament,

convenes the Conciliation Committee.The Commission takes part in the work.

The Council, by qualified majority,

establishes a common position.

The Commission issues a communication

on the common position.


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The European Parliament:voice of the people

The members of the European Parliament (MEPs) sit not in national blocks but in Europe-widepolitical groups that bring together all the main political parties operating in the EU memberstates.

Number of seats per political group, as at 1 April 2003

The Parliaments origins go back to the 1950s and the founding treaties. Since 1979, MEPshave been directly elected by the citizens they represent.

Parliamentary elections are held every five years, and every EU citizen who is registered as avoter is entitled to vote. So Parliament expresses the democratic will of the Union's 374 mil-lion citizens, and it represents their interests in discussions with the other EU institutions.

Political group Abbreviation No of seatsEuropean Peoples Party (Christian Democrats) EPP-ED 232and European DemocratsParty of European Socialists PES 175European Liberal, Democrat and Reformist Party ELDR 52European United Left/Nordic Green Left EUL/NGL 49Greens/European Free Alliance Greens/EFA 44Union for Europe of the Nations UEN 23Europe of Democracies and Diversities EDD 18Non-attached NA 31

Total 624

Key facts

Role: Directly elected legislative arm of the EU

Next election: June 2004

Meetings: Monthly plenary sessions in Strasbourg,

committee meetings and additional

sessions in Brussels

Address: Plateau du Kirchberg, B.P. 1601

L-2929 LuxembourgTel.: (352) 4300-1

Internet: www.europarl.eu.int


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Where is Parliament based?

The European Parliament works in France,Belgium and Luxembourg.

The monthly plenary sessions, which all MEPsattend, are held in Strasbourg (France) theParliament's seat. Parliamentary committeemeetings and any additional plenary sessionsare held in Brussels (Belgium), whilstLuxembourg is home to the administrativeoffices (the General Secretariat).

What does Parliament do?

Parliament has three main roles:

1. It shares with the Council the power tolegislate.The fact that it is a directlyelected body helps guarantee the democ-ratic legitimacy of European law.

2. It exercises democratic supervision overall EU institutions, and in particular theCommission. It has the power to approveor reject the nomination of Commis-

sioners, and it has the right to censure theCommission as a whole.

3. It shares with the Council authority overthe EU budget and can therefore influ-ence EU spending. At the end of the pro-cedure, it adopts or rejects the budget inits entirety.

These three roles are described in greaterdetail below.

1. The power to legislate

The most common procedure for adopting(i.e. passing) EU legislation is co-decision(see above: Treaties and decision-making).

This places the European Parliament and theCouncil on an equal footing and the lawspassed using this procedure are joint acts ofthe Council and Parliament. It applies tolegislation in a wide range of fields.

1999 2004 2007-04 -07 -09

Belgium 25 24 24Bulgaria - - 18Cyprus - 6 6Czech Republic - 24 24Denmark 16 14 14Germany 99 99 99Greece 25 24 24Spain 64 54 54Estonia - 6 6France 87 78 78Hungary - 24 24Ireland 15 13 13Italy 87 78 78

Latvia - 9 9Lithuania - 13 13Luxembourg 6 6 6Malta - 5 5Netherlands 31 27 27Austria 21 18 18Poland - 54 54Portugal 25 24 24Romania - - 36Slovakia - 14 14

Slovenia - 7 7Finland 16 14 14Sweden 22 19 19United Kingdom 87 78 78Total (max.) 626 732 786

In 2002, Pat Cox was elected Presidentof t he European Parl iament .

Number of seats per country(in alphabet ical order according t o thecountrys name in i ts own language)


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On a range of other proposals Parliamentmust be consulted, and its approval isrequired for certain important political orinstitutional decisions.

Parliament also provides impetus for newlegislation by examining the Commissionsannual work programme, considering whatnew laws would be appropriate and askingthe Commission to put forward proposals.

2. Democratic supervision

Parliament exercises democratic supervisionover the other European institutions. It does

so in several ways.

First, when a new Commission is to beappointed, Parliament interviews all theprospective new members and President ofthe Commission (nominated by the memberstates). They cannot be appointed withoutParliaments approval.

Second, the Commission is politicallyanswerable to Parliament, which can pass amotion of censure calling for its mass resig-nation.

More generally, Parliament exercises controlby regularly examining reports sent to it bythe Commission (general report, reports onthe implementation of the budget, theapplication of Community law, etc.).Moreover, MEPs regularly ask theCommission written and oral questions.

The members of the Commission attend ple-nary sessions of Parliament and meetings ofthe parliamentary committees, maintaininga continual dialogue between the two insti-tutions.

Parliament also monitors the work of theCouncil: MEPs regularly ask the Council writ-ten and oral questions, and the President of

the Council attends the plenary sessions andtakes part in important debates.

Parliament works closely with the Council incertain areas, such as common foreign andsecurity policy and judicial co-operation, aswell as on some issues of common interestsuch as asylum and immigration policy and

measures to combat drug abuse, fraud andinternational crime. The Council Presidencykeeps Parliament informed on all these sub-

jects.

Parliament can also exercise democratic con-trol by examining petitions from citizens andsetting up temporary committees of inquiry.

Finally, Parliament provides input to every EU

summit (the European Council meetings). Atthe opening of each summit, the President ofParliament is invited to express Parliament'sviews and concerns about topical issues andthe items on the European Council's agenda.

3. The power of the purse

The EUs annual budget is decided jointly byParliament and the Council of the EuropeanUnion (see below). Parliament debates it intwo successive readings, and it does notcome into force until it has been signed bythe President of Parliament.

Parliament's Committee on BudgetaryControl (COCOBU) monitors how the budgetis spent, and each year Parliament decideswhether to approve the Commissions han-dling of the budget for the previous financialyear. This approval process is technically

known as granting a discharge.

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How is the Parliamentswork organised?

Parliament's work is divided into two main

stages:

Preparing for the plenary session.This isdone by the MEPs in the various parlia-mentary committees that specialise in par-ticular areas of EU activity. The issues fordebate are also discussed by the politicalgroups.

The plenary session itself. Plenary ses-

sions, attended by all MEPs, are normallyheld in Strasbourg (one week per month)and sometimes in Brussels (two days). Atthese sessions, Parliament examines pro-posed legislation and votes on amend-ments before coming to a decision on thetext as a whole.

Other items on the agenda may includeCouncil or Commission communications orquestions about what is going on in theEuropean Union or the wider world.

The directly elected representat ives of the EUs cit izens meet in Strasbourg t o debate

and vote on Europe-wide legislat ion t hat aff ects everyone.

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The Council of the European Union:voice of the member states

The Council is the EU's main decision-makingbody. Like the European Parliament, theCouncil was set up by the founding treatiesin the 1950s. It represents the memberstates, and its meetings are attended by oneminister from each of the EUs national gov-ernments.

Which ministers attend which meetingdepends on what subjects are on the agenda.If, for example, the Council is to discussenvironmental issues, the meeting will beattended by the Environment Minister fromeach EU country and it will be known as theEnvironment Council.

The EUs relations with the rest of the worldare dealt with by the General Affairs andExternal Relations Council. But this Councilconfiguration also has wider responsibilityfor general policy issues, so its meetings areattended by whichever minister or Statesecretary each government chooses.

Altogether there are nine different Councilconfigurations:

General Affairs and External Relations Economic and Financial Affairs (Ecofin)

Justice and Home Affairs

Employment, Social Policy, Health andConsumer Affairs

Competitiveness (Internal Market, Industryand Research)

Transport, Telecommunications and Energy

Agriculture and Fisheries Environment

Education, Youth and Culture

Nevertheless, the Council remains one singleinstitution.

Each minister in the Council is empowered tocommit his or her government. In otherwords, the ministers signature is the signa-ture of the whole government. Moreover,each minister in the Council is answerable tohis or her national parliament and to the cit-izens that parliament represents. This ensuresthe democratic legitimacy of the Councilsdecisions.

What does the Council do?

The Council has six key responsibilities:

1. To pass European laws. In many fields itlegislates jointly with the EuropeanParliament.

Key facts

Role: Legislative arm of the EU,represent ing the member states

Members: One minister from each EU countryPresidency: Rotates every six monthsMeetings: In Brussels (Belgium), except in April, June and

October when meetings are in Luxembourg

Address: Rue de la Loi/Wetstraat ,175, B-1048 BrusselsTel.: (32-2) 285 61 11Internet: ue.eu.int


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How Europeans see themselves

2. To co-ordinate the broad economic poli-cies of the member states.

3. To conclude international agreementsbetween the EU and one or more States orinternational organisations.

4. To approve the EUs budget, jointly withthe European Parliament.

5. To develop the EUs common foreign andsecurity policy (CFSP: for further detailssee below), based on guidelines set by theEuropean Council.

6. To co-ordinate co-operation between thenational courts and police forces in crimi-nal matters (see the Justice and Home

Affairs section below).

Most of these responsibilities relate to theCommunity domain i.e. areas of actionwhere the member states have decided topool their sovereignty and delegate deci-sion-making powers to the EU institutions.

This domain is the first pillar of theEuropean Union.

However, the last two responsibilities relatelargely to areas in which the member stateshave not delegated their powers but are sim-ply working together. This is called intergov-ernmental co-operation and it covers thesecond and third pillars of the EuropeanUnion (CFSP, and police and judicial cooper-ation in criminal matters).

The Councils work is described in greaterdetail below.

1. Legislation

Much EU legislation is adopted jointly by theCouncil and Parliament (see above: Treatiesand decision-making).

As a rule, the Council only acts on a propos-al from the Commission, and the Commissionnormally has responsibility for ensuring thatEU legislation, once adopted, is correctlyapplied.

2. Co-ordinating the economic policies of

member states

The EU countries have decided that theywant an overall economic policy based onclose co-ordination between their nationaleconomic policies. This co-ordination is car-ried out by the economics and finance min-isters, who collectively form the Economicand Financial Affairs (Ecofin) Council.

3. Concluding international agreements

Each year the Council concludes (i.e. offi-cially signs) a number of agreementsbetween the European Union and non-EUcountries, as well as with internationalorganisations. These agreements may cover

Ministers from every EU country meet in t he Council t o take joint decisions on EU policies and legislation.


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broad areas such as trade, co-operation anddevelopment or they may deal with specificsubjects such as textiles, fisheries, scienceand technology, transport, etc.

In addition, the Council may conclude con-ventions between the EU member states infields such as taxation, company law or con-sular protection. Conventions can also dealwith co-operation in the field of Justice andHome Affairs (see below).

4. Approving the EU budget

The EUs annual budget is decided jointly by

the Council and the European Parliament. Ifthe two institutions do not agree, the rulesallow the Council to take the final decisionon compulsory expenditure (mainly agricul-tural expenditure, and expenses arising frominternational agreements with non-EUcountries), while Parliament has the lastword on non-compulsory expenditure andthe final approval of the budget as a whole.

5. Common Foreign and Security Policy

The member states are working to develop aCommon Foreign and Security Policy (CFSP).But foreign policy, security and defence are

matters over which the individual EU mem-ber states retain independent control. Theyhave not pooled their national sovereignty inthese areas, so Parliament and the EuropeanCommission play only a limited role here.However, the EU countries have much togain by working together on these issues,and the Council is the main forum in whichthis inter-governmental co-operation takesplace.

To enable the EU to respond more effective-ly to international crises, the EuropeanCouncil (at the Helsinki summit meeting inDecember 1999) decided that the EU wouldcreate a Rapid Reaction Force of up to60 000 military personnel that could bedeployed within 60 days and kept in opera-tion for at least a year.

18


In January 2003, the European Union Police Mission began operat ions in Bosnia and Herzegovina, taking

over the civilian aspects of crisis management from UN peacekeepers. Action of this kind is decided and co-

ordinated by the Council of the European Union.

Reu

ters

/Dan

ilo

Krs

tanov

ic


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This will not be a European army. The per-sonnel will remain members of theirnational armed forces and under nationalcommand, and their role will be limited tocarrying out humanitarian, rescue, peace-

keeping and other crisis management tasks.

To provide political control and strategicdirection in a crisis, the European Council(Nice, December 2000) decided to establishnew permanent political and military struc-tures within the Council of the EuropeanUnion. These new structures are:

the Political and Security Committee (PSC);

the European Union Military Committee

(EUMC); and the European Union Military Staff (EUMS),

composed of military experts seconded tothe Council Secretariat by the memberstates.

The EUMS is under the military direction ofthe EUMC, which it assists.

In 2002, two agencies were set up to carryout specific technical and scientific tasks forthe Common Foreign and Security Policy.

They are:

the European Institute for Security Studies(www.iss-eu.org), based in Paris, France;

the European Union Satellite Centre(www.eusc.org), based in Torrejn deArdoz, Spain.

6. Justice and Home Affairs (JHA)

Drugs, terrorism, international fraud, traf-ficking in human beings and the sexualexploitation of children are all problems ofgreat concern to European citizens. They arecross-border criminal activities, and onlycross-border co-operation can tackle themeffectively. If Europe is to do so, and to giveall its citizens equal access to civil justicethroughout the EU, then the national courts,

police forces, customs officers and immigra-tion services of all EU countries have to worktogether.

They have to ensure, for example:

that a court judgment delivered in one EUcountry in a divorce or child custody caseis recognised in all other EU countries;

that the EUs external borders are effec-tively policed;

that customs officers and police exchangeinformation on the movements of suspect-ed drugs traffickers or people smugglers;

that asylum seekers are assessed and treat-ed in the same way throughout the EU, soas to prevent asylum shopping.

Issues such as these, collectively known as

Justice and Home Affairs (JHA), are dealtwith by the Ministers for Justice and of theInterior, acting collectively as the Justice andHome Affairs Council.


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How is the Councilswork organised?

Coreper

In Brussels, each EU member state has a perma-nent team (representation) that represents itand defends its national interest at EU level. Thehead of each representation is, in effect, his orher countrys ambassador to the EU.

These ambassadors (known as permanentrepresentatives) meet weekly within thePermanent Representatives Committee(Coreper). The role of this committee is toprepare the work of the Council, with theexception of agricultural issues, which arehandled by the Special Committee onAgriculture. Coreper is assisted by a numberof working groups, made up of officials fromthe national administrations.

The Council Presidency

The Presidency of the Council rotates every

six months. In other words, each EU countryin turn takes charge of the Council agendaand chairs all the meetings for a six-monthperiod, promoting legislative and politicaldecisions and brokering compromisesbetween the member states.

The rota for 2003-06 is as follows:

2003 First half of the year: Greece

Second half of the year: Italy

2004 First half of the year: Ireland

Second half of the year: Netherlands

2005 First half of the year: Luxembourg

Second half of the year: United Kingdom

2006 First half of the year: Austria

Second half of the year: Finland

If, for example, the Environment Council isscheduled to meet during the second half of2006 it will be chaired by the FinnishMinister for the Environment, since Finlandis holding the Council Presidency at that

time.

The General Secretariat

The Presidency is assisted by the GeneralSecretariat, which prepares and ensures thesmooth functioning of the Council's work atall levels.

In 1999, Javier Solana was appointed

Secretary-General of the Council. He is alsoHigh Representative for the CommonForeign and Security Policy (CFSP), and inthis capacity he helps the Council to draftand implement political decisions. He alsoengages in political dialogue, on theCouncil's behalf, with non-EU countries.

The Secretary-General is assisted by a DeputySecretary-General in charge of managing

the General Secretariat.

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Javier Solana, as the EUs foreign pol icy chief , acts

for Europe on the world stage.


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How many votes per country?

Decisions in the Council are taken by vote.The bigger the countrys population, themore votes it has. But the number is not

strictly proportional: it is adjusted in favourof the less populous countries.

Until 1 May 2004, the number of votes eachcountry can cast is as follows:

Germany, France, Italy andthe United Kingdom 10Spain 8Belgium, Greece, the Netherlands and

Portugal 5Austria and Sweden 4Denmark, Ireland and Finland 3Luxembourg 2 Total 87

From 1 May 2004 (when new member statesjoin the EU) until 31 October that year, thereare transitional arrangements for changingthe weighting of votes.

From 1 November 2004, the number of voteseach country can cast (including the newmember states) is as follows:

Germany, France, Italy andthe United Kingdom 29Spain and Poland 27Netherlands 13Belgium, Czech Republic, Greece,Hungary and Portugal 12

Austria and Sweden 10Denmark, Ireland, Lithuania,Slovakiaand Finland 7Cyprus, Estonia, Latvia, Luxembourgand Slovenia 4Malta 3- Total 321

Qualified majority voting

The most common voting procedure in theCouncil is qualified majority voting (QMV).

This means that, for a proposal to be adopt-

ed, it needs the support of a specified mini-mum number of votes. (The details are givenbelow.)

However, in some particularly sensitive areassuch as CFSP, taxation, asylum and immigra-tion policy, Council decisions have to beunanimous. In other words, each memberstate has the power of veto in these areas.

Unanimous agreement is already hard toachieve between 15 countries: in anenlarged Union of 27 or more it will be vir-tually impossible. If it kept trying to operateunder its present rules, the EU would beparalysed unable to act in many importantfields. So the Treaty of Nice has changed therules, allowing the Council to take decisionsby qualified majority voting in quite a num-ber of areas that used to require unanimity.

Until 1 May 2004, the minimum number ofvotes required to reach a qualified majorityis 62 out of the total of 87 (i.e. 71.3 %). Fora six-month period from 1 May 2004, whennew member states join the EU, transitionalarrangements apply.

From 1 November 2004, a qualified majoritywill be reached:

if a majority of member states (in some

cases a two thirds majority) approve, AND if a minimum of 232 votes is cast in favour-

which is 72,3 % of the total (roughly thesame share as under the previous system).

In addition, a member state may ask for con-firmation that the votes in favour representat least 62 % of the total population of theUnion. If this is found not to be the case, thedecision will not be adopted.


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The Commission is the politically independentinstitution that represents and upholds theinterests of the EU as a whole. It is the drivingforce within the EUs institutional system: it

proposes legislation, policies and programmesof action and it is responsible for implement-ing the decisions of Parliament and theCouncil.

Like the Parliament and Council, theEuropean Commission was set up in the1950s under the EUs founding treaties.

Who are the Commission?

The term Commission is used in two senses.First, it refers to the Members of theCommission i.e. the team of 20 men andwomen appointed by the member states andParliament to run the institution and take itsdecisions. Second, the term Commissionrefers to the institution itself and to its staff.

Informally, the Members of the Commissionare known as Commissioners. They have allheld political positions in their countries oforigin, and many have been governmentministers, but as Members of the Commissionthey are committed to acting in the interests

of the Union as a whole and not takinginstructions from national governments.

A new Commission is appointed every fiveyears, within six months of the elections tothe European Parliament. The procedure is asfollows:

The member state governments agreetogether on who to designate as the newCommission President.

The Commission President-designate, indiscussion with the member state govern-ments, chooses the other 19 Members ofthe Commission.

The new Parliament then interviews all 20members and gives its opinion on theentire college. If approved, the newCommission can officially start work thefollowing January.

The present Commissions term of office runsuntil 31 October 2004. Its President isRomano Prodi.

The Commission remains politically answer-able to Parliament, which has the power todismiss it by adopting a motion of censure.

The Commission attends all the sessions of

22


The European Commission:promoting the common interest

Key facts

Role: Executive arm of the EU and init iatorof legislat ive proposals

Members: 20: two each from France, Germany, Italy,Spain and the United Kingdom; one fromeach of the other member states

Term of office:Five years (1999-2004, 2004-09)

Address: Rue de la Loi/Wetstraat , 200B-1049 BrusselsTel.: (32-2) 299 11 11Internet: europa.eu.int/comm


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Parliament, where it must clarify and justifyits policies. It also replies regularly to writtenand oral questions posed by MEPs.

The day-to-day work of the Commission isdone by its administrative officials, experts,translators, interpreters and secretarial staff.

There are approximately 24 000 of theseEuropean civil servants. That may sound a

lot, but in fact it is fewer than the number ofstaff employed by most medium-sized citycouncils in Europe.

Far from being faceless bureaucrats, thesepeople are ordinary citizens from every EUcountry, selected through competitive exam-inations and working together to build astrong and successful European Union.Commission officials like the staff of otherEU bodies are recruited via the European

Personnel Selection Office (EPSO):europa.eu.int/epso.

Where is the Commission based?

The seat of the Commission is in Brussels(Belgium), but it also has offices inLuxembourg, representations in all EU coun-tries and delegations in many capital citiesaround the world.

What does the Commission do?

The European Commission has four main roles:

1. to propose legislation to Parliament andthe Council;

2. to manage and implement EU policies andthe budget;

3. to enforce European law (jointly with theCourt of Justice);

4. to represent the European Union on theinternational stage, for example by nego-tiating agreements between the EU andother countries.

As President of the Commission, Romano Prodi is keen on dialogue explaining what his

inst it ut ion is doing and hearing the views of EU cit izens. Two-way communication is essential in

bringing Europe and Europeans closer t ogether.


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1. Proposing new legislation

Under the Treaty, the Commission has theright of initiative. In other words, theCommission alone is responsible for drawing

up proposals for new European legislation,which it presents to Parliament and theCouncil.These proposals must aim to defendthe interests of the Union and its citizens,not those of specific countries or industries.

Before making any proposals, theCommission must be aware of new situationsand problems developing in Europe and itmust consider whether EU legislation is the

best way to deal with them. That is why theCommission is in constant touch with a widerange of interest groups and with two advi-sory bodies the European Economic andSocial Committee (made up of employersand trade unions representatives) and theCommittee of the Regions(made up of rep-resentatives of local and regional authori-ties). It also seeks the opinions of nationalparliaments and governments.

The Commission will propose action at EUlevel only if it considers that a problem can-not be solved more efficiently by national,regional or local action. This principle ofdealing with things at the lowest possiblelevel is called the subsidiarity principle.

If, however, the Commission concludes thatEU legislation is needed, then it drafts a pro-posal that it believes will deal with the prob-

lem effectively and satisfy the widest possi-ble range of interests. To get the technicaldetails right, the Commission consults theexperts who make up its various committeesand working groups.

2. Implementing EU policies and

the budget

As the European Union's executive body, theCommission is responsible for managing andimplementing the EU budget and the policiesand programmes adopted by Parliament andthe Council. Most of the actual work andspending is done by national and localauthorities, but the Commission is responsi-ble for supervising it.

One example of a policy actively managedby the Commission is competition policy: theCommission monitors cartels and mergers,

and makes sure that EU countries do notsubsidise their industries in such a way as todistort competition.

Examples of EU programmes managed bythe Commission range from the Interregand URBAN programmes (creating cross-border partnerships between regions andhelping regenerate declining urban areas) tothe Erasmus programme of Europe-wide stu-

dent exchanges.

The Commission handles the budget underthe watchful eye of the Court of Auditors.Both institutions aim to ensure good finan-cial management. Only if it is satisfied withthe Court of Auditors' annual report does theEuropean Parliament grant the Commissiondischarge for implementing the budget.

3. Enforcing European law

The Commission acts as guardian of theTreaties. This means that the Commission,together with the Court of Justice, is respon-sible for making sure EU law is properlyapplied in all the member states.

If it finds that an EU country is not applyingan EU law, and therefore not meeting itslegal obligations, the Commission takes steps

to put the situation right.

24



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First it launches a legal process called theinfringement procedure. This involves send-ing the government an official letter, sayingwhy the Commission considers this countryis infringing EU law and setting it a deadline

for sending the Commission a detailed reply.

If this procedure fails to put things right, theCommission must then refer the matter totheCourt of Justice,which has the power toimpose penalties. The Courts judgments arebinding on the member states and the EUinstitutions.

4. Representing the EU on

the international stage

The European Commission is an importantmouthpiece for the European Union on theinternational stage. It enables the 15 memberstates to speak with one voice in interna-tional forums such as the World TradeOrganisation.

The Commission also has the responsibility ofnegotiating international agreements on

behalf of the EU. One example is theCotonou Agreement, which sets out theterms of an important aid and trade partner-ship between the EU and developing coun-tries in Africa, the Caribbean and the Pacific.

How is the Commissionswork organised?

It is up to the Commission President to

decide which Commissioner will be responsi-ble for which policy area, and to reshufflethese responsibilities (if necessary) duringthe Commissions term of office. ThePresident, with the Commissions approval, isalso entitled to demand a Commissionersresignation.

The team of 20 Commissioners (also knownas the College) meets once a week, usuallyon Wednesdays in Brussels. Each item on theagenda is presented by the Commissionerresponsible for that policy area, and the

College takes a collective decision on it.

The Commissions staff is organised into 36departments, known as Directorates-General (DGs) and services (such as theLegal Service and Translation Service).

Each DG is responsible for a particular policyarea and is headed by a Director-Generalwho is answerable to one of the Com-

missioners.

It is the DGs that actually devise and draftthe Commissions legislative proposals, butthese proposals become official only whenadopted by the College at its weekly meet-ing. The procedure is roughly as follows.

Suppose, for example, that the Commissionsees a need for EU legislation to prevent pol-lution of Europes rivers. The Directorate-

General for the Environment will draw up aproposal, based on extensive consultations

The European Union is the worlds leading donor of

development aid, including aid for educat ion and

for building schools.


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The Members of t he European Commission come from al l EU count ries but are independent of nat ional

governments. They meet once a week to discuss EU policies and t o propose new European legislat ion.

with European industry and farmers, withenvironment ministries in the member statesand with environmental organisations.

The proposed legislation will then be dis-

cussed with all relevant Commission depart-ments and amended if necessary. It will thenbe checked by the Legal Service and by theCommissioners cabinets (personal politicalstaff).

Once the proposal is fully ready, theSecretary-General will put it on the agendafor a forthcoming Commission meeting. Atthis meeting, the Environment Commissioner

will explain to his or her colleagues why thislegislation is being proposed, and they willthen discuss it. If there is agreement, theCollege will adopt the proposal and thedocument will be sent to Council and theEuropean Parliament for their consideration.

If there is disagreement among theCommissioners, the President will ask them tovote on it. If 11 or more of the 20 membersare in favour, the proposal will be adopted.

Thereafter it will have the unconditional sup-port of all the Commission members.

Future size of the Commission

There have always been two Commissionersfrom each of the most heavily populatedmember states and one Commissioner from

each of the other EU countries. However, ifthis system were maintained after EUenlargement, the Commission would becometoo large to be workable. There will alreadybe 10 new Commissioners (bringing the totalto 30) on 1 May 2004, when 10 new memberstates join the EU.

So, from the date when the 200409Commission takes office (1 November 2004),

there will be only one Commissioner percountry. Once the Union has 27 memberstates, the Council by a unanimous decisionwill fix the maximum number of Commis-sioners. There must be fewer than 27 ofthem, and their nationality will be deter-mined by a system of rotation that isabsolutely fair to all countries.


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The Court of Justice of the EuropeanCommunities (often referred to simply asthe Court) was set up under the ECSC Treatyin 1952. Its job is to ensure that EU legisla-tion (technically known as Community law)is interpreted and applied in the same way ineach member state. In other words, that it isalways identical for all parties and in all cir-cumstances. The Court has the power to set-tle legal disputes between member states, EUinstitutions, businesses and individuals.

The Court is composed of one judge permember state, so that all the EUs national

legal systems are represented. Even afterenlargement there will still be one judge permember state, but for the sake of efficiencythe Court will be able to sit as a GrandChamber of just 13 judges instead of alwayshaving to meet in a plenary session attendedby all the judges.

The Court is assisted by eight advocates-general. Their role is to present reasoned

opinions on the cases brought before theCourt. They must do so publicly and impar-tially.

The judges and advocates-general are eitherformer members of the highest nationalcourts or highly competent lawyers who canbe relied on to show impartiality. They areappointed by joint agreement of the govern-ments of the member states. Each isappointed for a term of six years, after whichthey may be reappointed for one or two fur-ther periods of three years.

To help the Court of Justice cope with thethousands of cases brought before it, and tooffer citizens better legal protection, aCourt of First Instance was created in

1989. This Court (which is attached to theCourt of Justice) is responsible for giving rul-ings on certain kinds of case, particularlyactions brought by private individuals andcases relating to unfair competition betweenbusinesses.

The Court of Justice and the Court of FirstInstance each have a President, chosen bytheir fellow judges to serve for a term of

three years.

The Court of Justice: upholding the law

Key facts

Role: To give legal judgments on cases broughtbefore it

Court of Justice:One judge from each EU country;eight advocates-general

Court of

First Instance: One judge from each EU country

Term of office: Members of both courts are appointed forrenewable terms of six yearsAddress: Plateau du Kirchberg, L-2925 LuxembourgTel.: (352) 4303-1Internet: curia.eu.int


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What does the Court do?

The Court gives rulings on cases broughtbefore it. The four most common types ofcase are:

1. requests for a preliminary ruling;

2. proceedings for failure to fulfil an obliga-

tion;3. proceedings for annulment;

4. proceedings for failure to act.

They are each described in greater detailbelow.

1. The preliminary ruling

The courts in each EU country are respon-

sible for ensuring that EU law is properlyapplied in that country. But there is a riskthat courts in different countries mightinterpret EU law in different ways.

To prevent this happening, there is a prelim-inary ruling procedure. This means that if anational court is in any doubt about theinterpretation or validity of an EU law it may,and sometimes must, ask the Court of Justicefor advice. This advice is given in the form ofa preliminary ruling.

2. Proceedings for failure to fulfil

an obligation

The Commission can initiate these proceed-ings if it has reason to believe that a mem-ber state is failing to fulfil its obligationsunder EU law. These proceedings may also beinitiated by another member state.

In either case, the Court investigates theallegations and gives its judgment. Theaccused member state, if it is indeed foundto be at fault, must set things right at once.

28


The Court of Just ice ensures that everyone is t reated equally under EU law.

There is one judge f rom each EU count ry.


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3. Proceedings for annulment

If any of the member states, the Council,Commission or (under certain conditions)Parliament believes that a particular EU law

is illegal they may ask the Court to annul it.

These proceedings for annulment can alsobe used by private individuals who want theCourt to cancel a particular law because itdirectly and adversely affects them as indi-viduals.

If the Court finds that the law in questionwas not correctly adopted or is not correctly

based on the treaties, it may declare the lawnull and void.

4. Proceedings for failure to act

The Treaty requires the European Parliament,the Council and the Commission to makecertain decisions under certain circum-stances. If they fail to do so, the memberstates, the other Community institutions and

(under certain conditions) individuals orcompanies can lodge a complaint with theCourt so as to have this violation officiallyrecorded.

How is the Courts work organised?

Cases are submitted to the registry and aspecific judge and advocate-general areassigned to each case.

The procedure that follows is in two stages:first a written and then an oral phase.

At the first stage, all the parties involvedsubmit written statements and the judgeassigned to the case draws up areportsum-marising these statements and the legalbackground to the case. From this report, theadvocate-general assigned to the case draws

his or her conclusions. In the light of theseconclusions, the judge draws up a draft rul-ingwhich is submitted to the other membersof the Court for examination.

Then comes thesecond stage the publichearing. In principle, this takes place beforethe whole Court (in plenary session), buthearings can also take place before chambersof three or five judges, depending on theimportance or complexity of the case. At thehearing, the parties' lawyers put their casebefore the judges and the advocate-general,who can question them. The advocate-gen-eral then gives his or her conclusions, afterwhich the judges deliberate and deliver their

judgment.

Judgments of the Court are decided by amajority and pronounced at a public hear-ing. Dissenting opinions are not expressed.


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The Court of Auditors checks that all theUnion's revenue has been received and all itsexpenditure incurred in a lawful and regularmanner and that the EU budget has beenmanaged soundly. The Court was establishedin 1977.

The Court has one member from each EUcountry, appointed by the Council for arenewable term of six years. Even afterenlargement there will still be one memberper EU country but, for the sake of efficien-cy, the Court can set up chambers (withonly a few members each) to adopt certaintypes of report or opinion.

In their countries of origin, the members ofthe Court have all worked for an auditing

institution or are specifically qualified forthat work. They are chosen for their compe-tence and independence, and they work full-time for the Court.

The members elect one of their number asPresident for a term of three years.

What does the Court do?

The Courts main role is to check that the EUbudget is correctly implemented in otherwords, that EU income and expenditure islegal and above board and to ensure soundfinancial management. So its work helps

guarantee that the EU system operates effi-ciently and openly.

To carry out its tasks, the Court investigatesthe paperwork of any organisation handlingEU income or expenditure. If need be, it car-ries out on-the-spot checks. Its findings arewritten up in reports which draw the atten-tion of the Commission and the memberstates to any problems.

To do its job effectively, the Court ofAuditors must remain independent of theother institutions but at the same time stayin constant touch with them.

One of its key functions is to help the bud-getary authority (the European Parliamentand the Council) by presenting them everyyear with a report on the previous financialyear. The comments it makes in this annual

report play a very important role inParliament's decision whether or not toapprove the Commissions handling of thebudget. If satisfied, the Court of Auditors

30


The European Court of Auditors:getting value for your money

Key facts

Role: To check that EU funds are used properlyMembers: One from each EU countryTerm of office:Members are appointed for a renewable

term of six yearsAddress: 12 rue Alcide de Gasperi, L-1615 LuxembourgTel.: (352) 4398-1

Internet: www.eca.eu.int


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also sends the Council and Parliament astatement of assurancethat European tax-payers' money has been properly used.

Finally, the Court of Auditors gives an opin-

ion before the EUs financial regulations areadopted. It can comment at any time on spe-cific issues, or it can give an opinion at therequest of one of the EU institutions.

How is the Courts work organised?

The Court of Auditors works independently,and is free to decide how to schedule itsauditing activities, how and when to present

its observations, and what publicity to giveto its reports and opinions.

It has approximately 550 qualified staff, ofwhom about 250 are auditors. The auditorsare divided into audit groups. They preparedraft reports on which the Court takes deci-sions.

The auditors frequently go on tours ofinspection to the other EU institutions, themember states and any country that receivesaid from the EU. Indeed, although theCourt's work largely concerns money for

which the Commission is responsible, inpractice 90 % of this income and expendi-ture is managed by the national authorities.

The Court of Auditors has no legal powers ofits own. If auditors discover fraud or irregu-larities they pass the information as quicklyas possible to the EU bodies responsible, sothey can take the appropriate action.

One import ant i tem on the EUs budget is support for environment- friendly farming that t reats animals well

and produces healt hy food. Audit ors check that this money, like the rest of the budget , is used properly.


32/5232


Twelve of the EUs 15 member states nowshare a single currency, the euro. Euro banknotes and coins came into circulation on 1

January 2002.

The European Central Bank (ECB) was set upin 1998, under the Treaty on European

Union, to introduce and manage this newcurrency conducting foreign exchangeoperations and ensuring the smooth opera-tion of payment systems. The ECB is alsoresponsible for framing and implementingthe EUs economic and monetary policy.

To carry out its role, the ECB works with theEuropean System of Central Banks (ESCB),which covers all 15 EU countries. However,

only 12 of these countries have so far adopt-ed the euro. The 12 collectively make up theeuro area and their central banks, togetherwith the European Central Bank, make upwhat is called the Eurosystem.

The ECB works in complete independence.Neither the ECB, the national central banksof the Eurosystem, nor any member of theirdecision-making bodies can ask for or acceptinstructions from any other body. The EU

institutions and member state governmentsmust respect this principle and must not seekto influence the ECB or the national centralbanks.

The ECB, working closely with the nationalcentral banks, prepares and implements the

decisions taken by the Eurosystems decision-making bodies the Governing Council, theExecutive Board and the General Council.

What does the Bank do?

One of the ECBs main tasks is to maintainprice stability in the euro area, preservingthe euros purchasing power.

That means keeping inflation under strictcontrol: the ECB aims to ensure that theyear-on-year increase in consumer prices isless than 2 %. The ECB goes about this in twoways:

First, by controlling the money supply. Ifthe money supply is excessive compared tothe supply of goods and services, inflationwill result.

The European Central Bank:managing the euro

Key facts

Role: To manage the euro and EU monetary policy

Members: Governing Council 18, General Council 17,Executive Board 6

Address: Kaiserstrasse 29, D-60311 Frankfurt am Main

Tel.: (49) 691 34 40

Internet: www.ecb.int


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Second, by monitoring price trends andassessing the risk they pose to price stabil-ity in the euro area.

Controlling the money supply involves,

amongst other things,setting interest ratesthroughout the euro area.This is perhapsthe Banks best-known activity.

How is the Banks work organised?

The European Central Banks work is organisedvia the following decision-making bodies.

The Executive Board

This comprises the President of the ECB, theVice-President and four other members, allappointed by common agreement of thepresidents or prime ministers of the euroarea countries. The Executive Board membersare appointed for a non-renewable term ofeight years.

The Executive Board is responsible for imple-menting monetary policy, as defined by theGoverning Council (see below), and for giv-ing instructions to the national centralbanks. It also prepares the Governing Councilmeetings and is responsible for the day-to-day management of the ECB.

The Governing Council

The Governing Council is the EuropeanCentral Bank's highest decision-makingbody. It comprises the six members of theExecutive Board and the governors of the 12central banks of the euro zone. It is chairedby the President of the ECB. Its primary mis-sion is to define the monetary policy of theeuro zone, and, in particular, to fix the inter-est rates at which the commercial banks canobtain money from the Central Bank.

The General Council

The General Council is the ECBs third deci-sion-making body. It comprises the ECBsPresident and the Vice-President and the

governors of the national central banks of all15 EU member states. The General Councilcontributes to the ECB's advisory and co-ordination work and helps prepare for thefuture enlargement of the euro zone.

Wim Duisenberg was appoint ed ECB President in

1998. The Banks main job is keeping inf lat ion

under control.


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Founded in 1957 under the Treaty of Rome,the European Economic and Social Committee(EESC) is an advisory body representingemployers, trade unions, farmers, consumersand the other interest groups that collective-ly make up organised civil society. It presentstheir views and defends their interests in pol-

icy discussions with the Commission, theCouncil and the European Parliament.

So the EESC is a bridge between the Unionand its citizens, promoting a more participa-tory, more inclusive and therefore moredemocratic society in Europe.

The Committee is an integral part of the EUsdecision-making process: it must be consult-

ed before decisions are taken on economicand social policy. On its own initiative it may

34


The European Economic and SocialCommittee: voice of civil society

Key facts

Role: Represents organised civil societyMembers: Currently 222, maximum 350Term of office: Four yearsMeetings: Brussels, monthlyAddress: 2 rue Ravenstein, B-1000 BrusselsTel.: (32-2) 546 90 11

Internet: www.esc.eu.int

Employment in Europe is great ly af fected by EU policies. Through the EESC,

employers and t rade unions both have a say in shaping those policies.


35/5235

also give opinions on other matters it con-siders important.

Until new member states join, the EESC has222 members the number from each EU

country roughly reflecting the size of itspopulation. The numbers per country are asfollows:

Germany, France, Italy andthe United Kingdom 24Spain 21Belgium, Greece, the Netherlands,Austria, Portugal and Sweden 12Denmark, Ireland and Finland 9

Luxembourg 6- Total 222

These numbers will not change afterenlargement, but representatives from thenew member states will join the Committee.

The numbers from each new member statewill be as follows:

Poland 21Romania 15

Bulgaria, Czech Republic and Hungary 12Lithuania and Slovakia 9Estonia, Latvia and Slovenia 7Cyprus 6Malta 5

On this basis, the Committee will have a totalof 344 members.

The members are nominated by the EU gov-

ernments but they work in complete politicalindependence. They are appointed for fouryears, and may be reappointed.

The Committee meets in Plenary Assembly,and its discussions are prepared by six sub-committees known as sections, each dealingwith particular policy areas. It elects itsPresident and two Vice-Presidents for a two-year term.

What does the EESC do?

The European Economic and SocialCommittee has three main roles:

to advise the Council, Commission andEuropean Parliament, either at theirrequest or on the Committees own initia-tive;

to encourage civil society to become moreinvolved in EU policymaking;

to bolster the role of civil society in non-EU countries and to help set up advisorystructures.

Who are the EESCs members?

Working mostly in their countries of origin,the members of the Committee form threegroups that represent employers, workersand various economic and social interests.

The Employers' Group has members from pri-vate and public sectors of industry, small andmedium-sized businesses, chambers of com-merce, wholesale and retail trade, bankingand insurance, transport and agriculture.

The Workers Group represents all categoriesof employees, from manual to executive. Itsmembers come from national trade unionorganisations.

The third group represents a wide range ofinterests: NGOs, farmers' organisations, small

businesses, crafts and professions, co-opera-tives and non-profit associations, consumerand environmental organisations, the scien-tific and academic communities and associa-tions that represent the family, women, per-sons with disabilities, etc.


36/52

Set up in 1994 under the Treaty on EuropeanUnion (Maastricht), the Committee of theRegions (COR) is an advisory body composedof representatives of Europes regional andlocal authorities. It ensures that theseauthorities have a say in European Unionpolicymaking and that regional and localidentities and prerogatives are respected.

The Committee has to be consulted on mat-ters that concern local and regional govern-ment, such as regional policy, the environ-ment, education and transport.

Until new member states join, theCommittee has 222 members. The numberfrom each member state approximatelyreflects its population size, as follows:

Germany, France, Italy andthe United Kingdom 24Spain 21Belgium, Greece, the Netherlands,Austria, Portugal and Sweden 12Denmark, Ireland and Finland 9Luxembourg 6

Total 222

These numbers will not change afterenlargement, but representatives from thenew member states will join the Committee.

The numbers from each new member statewill be as follows:

Poland 21Romania 15Bulgaria, Czech Republic and Hungary 12Lithuania and Slovakia 9Estonia, Latvia and Slovenia 7Cyprus 6Malta 5

On this basis, the Committee will have a totalof 344 members.

The members of the Committee are elected

municipal or regional politicians, represent-ing the entire range of local and regionalgovernment activities in the EuropeanUnion. They may be regional presidents,regional parliamentarians, town councillors,mayors of large cities, etc.

They are nominated by the EU governmentsbut they work in complete political indepen-dence. The Council of the European Union

appoints them for four years, and they maybe reappointed. Under the Treaty of Nice,

36


The Committee of the Regions:voice of local government

Key facts

Role: Represents regional and local authoritiesMembers: Currently 222, maximum 350Term of office: Four yearsMeetings: Brussels, five plenaries per yearAddress: 79 rue Belliard, B-1040 BrusselsTel.: (32-2) 282 22 11

Internet: www.cor.eu.int


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they must also have a mandate from theauthorities they represent, or must be politi-cally accountable to them.

The Committee of the Regions appoints a

President from among its members, for aterm of two years.

What does the Committee do?

The role of the Committee of the Regions isto put forward the local and regional pointsof view on EU legislation. It does so by issu-ing opinions on Commission proposals.

The Commission and the Council must con-sult the Committee of the Regions on topicsof direct relevance to local and regionalauthorities, but they can also consult theCommittee whenever they wish. For its part,the Committee can adopt opinions on itsown initiative and present them to theCommission, Council and Parliament.

How is the Committees workorganised?

Each year the Committee of the Regionsholds five plenary sessions, during which itsgeneral policy is defined and opinions areadopted.

The members of the Committee are assigned

to specialist commissions whose job is toprepare the plenary sessions. There are sixcommissions:

Commission for Territorial Cohesion Policy(COTER);

Commission for Economic and SocialPolicy (ECOS);

Commission for Sustainable Development(DEVE);

Commission for Culture and Education(EDUC);

Commission for Constitutional Affairs andEuropean Governance (CONST);

Commission for External Relations (RELEX).

Through the Commit tee of the Regions, mayors and

town councillors f rom all over Europe have their

say in EU action that af fects the regions such as

projects to improve t ransport, communications

and energy networks.


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The European Investment Bank (EIB) was setup in 1958 by the Treaty of Rome. It helpsachieve the Union's objectives by financingcertain types of investment project.

The projects selected are ones that promoteEuropean integration, balanced develop-ment, economic and social cohesion and aninnovative knowledge-based economy.

What does the Bank do?

The EIBs mission is to invest in projects thatpromote the objectives of the European

Union. It is non-profit-making and gets nomoney from savings or current accounts. Nordoes it use any funds from the EU budget.Instead, the EIB is financed through borrow-ing on the financial markets and by the Banksshareholders the member states of theEuropean Union. They subscribe jointly to itscapital, each countrys contribution reflectingits economic weight within the Union.

This backing by the member states gives theEIB the highest possible credit rating (AAA)on the money markets, where it can thereforeraise very large amounts of capital on very

competitive terms. This in turn enables theBank to invest in projects of public interestthat would otherwise not get the money orwould have to borrow it more expensively.

The projects the Bank invests in are carefullyselected according to the following criteria:

they must help achieve EU objectives suchas making European industries and smallbusinesses more competitive; creatingtrans-European networks (transport,telecommunications and energy); boostingthe information technology sector; protect-ing the natural and urban environments;

improving health and education services; they must chiefly benefit the most disad-

vantaged regions;

they must help attract other sources offunding.

These criteria apply to activities both withinand outside the European Union. Nearly 90 %

of the EIB's activities take place within theEuropean Union, but a significant proportionof the funding goes to the future memberstates.

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The European Investment Bank:financing EU projects

Key facts

Role: Finances EU projectsMembers: The member states

Board of Directors 25

Management Commit tee 8Address: 100 Boulevard Konrad Adenauer

L-2950 LuxembourgTel.: (352) 4379-1Internet: www.eib.eu.int


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The EIB also supports sustainable develop-ment in the Mediterranean countries, Africa,the Caribbean and the Pacific, as well as pro-

jects in Latin America and Asia.

Finally, the EIB is the majority shareholder inthe European Investment Fund. This fundwas set up in 1994 to finance investment insmall and medium-sized enterprises (SMEs).

How is the Banks work organised?

The Bank deals directly with the promotersof large-scale projects (at least 25 millioneuro), while for smaller projects (SMEs or

local authorities) it works with some 180banks and specialist financial intermediariesin Europe.

The EIB is an autonomous institution. Itmakes its own borrowing and lending deci-sions purely on the merits of each projectand the opportunities offered by the finan-cial markets. Each year, it presents a reporton all its activities.

The Bank co-operates with the EU institu-tions. For example, its representatives maytake part in committees of the EuropeanParliament, and the President of the EIB mayattend Council meetings.

The Banks decisions are taken by the follow-ing bodies.

TheBoard of Governorsconsists of minis-ters (normally the Finance Ministers) fromall the member states. It defines the Banksgeneral lending policy, approves the bal-ance sheet and annual report, authorisesthe Bank to fund projects outside the EUand decides on capital increases.

The Board of Directors, chaired by thePresident of the Bank, comprises 24 mem-bers appointed by the member states andone by the European Commission. Itapproves lending and borrowing opera-tions and it makes sure that the EIB isproperly managed.

TheManagement Committeeis the Banksfull-time executive. It handles the EIBsday-to-day business.

The EIB finances a wide range of projects, including new road and rai l links to improve Europes transport

networks.

Eurek

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The position of European Ombudsman wascreated by the Treaty on European Union(Maastricht, 1992). The Ombudsman acts asan intermediary between the citizen and theEU authorities. He is entitled to receive andinvestigate complaints from EU citizens,businesses and institutions, and from anyoneresiding or having their legal domicile in anEU country.

The Ombudsman is elected by the EuropeanParliament for a renewable term of fiveyears, which corresponds to Parliament's leg-islative term.

What does the Ombudsman do?

He helps to uncover maladministration inthe European institutions and other EUbodies. Maladministration means poor orfailed administration in other words, an EUinstitution fails to do something it shouldhave done, or does it the wrong way, or doessomething that ought not to be done.

Examples of maladministration are: unfairness,

discrimination,

abuse of power,

lack or refusal of information,

unnecessary delay,

incorrect procedures.

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The European Ombudsman:investigating your complaints

Key facts

Role: To uncover maladministrationTerm of office: Five years, renewableAddress: 1 avenue du Prsident Robert Schuman

B.P. 403 F-67001 StrasbourgTel.: (33) 388 17 23 13Internet: www.euro-ombudsman.eu.int

Mr Nikiforos

Diamandouros took up

the post of Ombudsman

in April 2003.


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The Ombudsman can make recommenda-tions to the EU institutions and may refer amatter to the European Parliament so that itcan take whatever political action is neces-sary.

The Ombudsman operates completely inde-pendently and impartially. He does notrequest or accept instructions from any gov-ernment or organisation. Moreover, duringhis term of office, he may not exercise anyother professional activity, either paid orunpaid.

How do I complain to the

Ombudsman?

If you live in the European Union (or you arean institution or business based in the EU),and if you think you have been the victim ofmaladministration by an EU institution orbody, the first thing to do is contact thatinstitution or body through the usual admin-istrative channels and try to get them to putthe situation right.

If that approach fails, you can complain tothe European Ombudsman.

You must make your complaint to theOmbudsmanwithin two yearsof the date onwhich you became aware of the act of mal-administration. You must clearly state whoyou are and what you are complainingabout, though you may ask for the com-plaint to remain confidential. If necessary,

the Ombudsman can advise you to approachanother authority.

The Ombudsman will not investigate yourcomplaint if the alleged facts are, or havebeen, the subject of a court case.

For practical guidance on making your com-plaint, go to the Ombudsmans Internet web-site.

How is the Ombudsmans workorganised?

The Ombudsman carries out investigationson his own initiative or following a com-plaint.

The EU institutions and bodies are obliged toprovide the Ombudsman with any informa-tion he requests and to give him access tothe relevant files. They can refuse to do soonly on justified grounds of confidentiality.

If the Ombudsman discovers a case of mal-administration, he informs the institution

concerned and makes draft recommenda-tions. The institution concerned has threemonths to give its detailed opinion on thematter.

The Ombudsman then submits a report tothe European Parliament and to the institu-tion concerned. He also lets the complainantknow the outcome of the investigations.

Every year, the Ombudsman gives theEuropean Parliament a report on all hisinvestigations.


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European Centre for theDevelopment of VocationalTraining

Established in 1975, the European Centre forthe Development of Vocational Training(Cedefop) is located in Thessaloniki, Greece.

Its job is to analyse and provide informationon vocational education and training sys-tems, policies, research and practice. Thishelps specialists throughout the EU to devel-op and improve vocational education andtraining in Europe.

Cedefop also runs an interactive websitecalled European Training Village, accessibleat www.trainingvillage.gr.

Further information atwww.cedefop.eu.int

European Foundationfor the Improvementof Living and WorkingConditions

Established in 1975, the EuropeanFoundation for the Improvement of Living

and Working Conditions (Eurofound) islocated in Dublin, Ireland.

Its job is to:

advise social and labour policymakers;

assess and analyse living and working con-ditions;

report on developments and trends;

contribute to improving the quality of life.

Further information atwww.eurofound.eu.int

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Agencies

An agency is not an EU institution: it is a body set up by the EU to carry out a very specifictechnical, scientific or managerial task.

The EU institutions (Parliament, Council, Commission, etc.) were created on the basis of theEuropean Treaties. Agencies, on the other hand, are not provided for in the Treaties. Each oneis set up by an individual piece of legislation that specifies the task of that particular agency.Not all of them have the word agency in their official title: they may, instead, be called a cen-tre, institute, foundation, office or authority.

There are currently 19 agencies. Two of them the European Institute for Security Studies andthe European Union Satellite Centre were set up under the Common Foreign and Security Policy(see the chapter on the Council of the European Union, above). Two others Europol andEurojust play an important role in co-operation between EU countries in the field of Justiceand Home Affairs. They are described below.

The other 15 carry out tasks under the first pillar of the EU the so-called Communitydomain. Read on for a brief description of each of them.


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European EnvironmentAgency

The European Environment Agency (EEA) was

established in 1990. It is located inCopenhagen, Denmark.

Its job is to collect and disseminate informa-tion on the state and trends of the environ-ment in Europe. It is open to non-EU coun-tries: Iceland, Liechtenstein and Norwayhave been members from the start. TheAgency co-operates actively with environ-mental bodies and international organisa-tions.

Further information at www.eea.eu.int

European TrainingFoundation

Established in 1990, the European TrainingFoundation (ETF) is located in Turin, Italy.

The ETF helps improve vocational training inover 40 non-EU countries. They include thecandidate countries and countries in neigh-bouring regions such as North Africa, theMiddle East, the Balkans and the formerSoviet Union.

The Foundation offers these countriesinsight, know-how and experience in train-ing people for new jobs and in developinglifelong learning programmes.

Further information atwww.etf.eu.int

European MonitoringCentre for Drugs andDrug Addiction

Established in 1993, the EuropeanMonitoring Centre for Drugs and DrugAddiction (EMCDDA) is located in Lisbon,Portugal.

The Centres task is to collect and dissemi-nate objective, reliable and comparableinformation on drugs and drug addiction inEurope. It works in partnership with non-EUcountries as well as with international bod-

ies such as the United Nations InternationalDrug Control Programme (UNDCP), theWorld Health Organisation (WHO), theCouncil of Europe's Pompidou Group, theWorld Customs Organisation (WCO), theInternational Criminal Police Organisation(Interpol) and the European Police Office(Europol).

Further information atwww.emcdda.org

European Agency for theEvaluation of MedicinalProducts

Established in 1993, the European Agencyfor the Evaluation of Medicinal Products(EMEA) is located in London, UnitedKingdom. The Agency helps protect and pro-

mote health in Europe by evaluating medi-cines for both human and veterinary use. Itbrings together scientific expertise from allEU countries.

Some types of medicinal product derivedfrom biotechnology can be sold in theEuropean Union only after careful examina-tion by the EMEA. If the Agency finds thatthe product is safe and of good quality, the

European Commission can authorise it forsale in all EU countries. People wishing tomarket other innovative medicines may alsoapply for this kind of authorisation.


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Most conventional medicines are authorisedby each individual EU country. The EMEAhelps run a system of mutual recognition forthese national authorisations.

Further information atwww.emea.eu.int

Office for Harmonisationin the Internal Market(Trade Marks and Designs)

Established in 1994, the Office forHarmonisation in the Internal Market

(OHIM) is located in Alicante, Spain.

Its task is to carry out registration proce-dures for Community trade marks anddesigns.

The Community trade mark system simpli-fies life and cuts costs for European busi-nesses. A manufacturer wishing to protecthis trade mark in Europe no longer has toregister identical trade marks in each EUcountry. Through OHIM he can now apply fora single Community trade mark, which giveshim the right to prohibit other firms fromusing identical or similar signs throughoutthe EU.

Further information at oami.eu.int

European Agency forSafety and Health at Work

Established in 1994, the European Agency

for Safety and Health at Work (EU-OSHA) islocated in Bilbao, Spain.

No one country can tackle the wide range ofoccupational safety and health (OSH) issuesfacing Europe today. So EU-OSHA was set upto pool Europes vast fund of knowledge andinformation on these issues, particularly onpreventive measures.

Progetto Italiano 2

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Transcript of Progetto Italiano 2