EYF EU Guide by Enka Youth Forum

Guide to the European Union EYF 2014 â&#x20AC;&#x201C; Enka Youth Forum December 12-15, Enka Schools, Istanbul-Turkey

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Index I.

The EU Explained

II.

Institutional Set-Up of the EU

1. 2. 3. 4. 5. 6.

III.

Community Method i. Ordinary Legislative Procedure Intergovernmental Method

Sources of Law Primary Sources of EU Law i. The Founding Treaties of the European Communities ii. The Charter of Fundamental Rights of the EU Secondary Sources of EU Law i. Regulations ii. Directives iii. Decisions iv. Recommendations and Opinions

Competences 1. 2. 3. 4.

12 14 15

16 17

Legal System of the EU 1. 2.

9 10 11

Legislative Procedures 1.

IV.

European Parliament Council of Ministers European Council i. Settling the Council confusion European Commission European Court of Justice European Central Bank

18 18

18-19

Definitions Principles Categories Infochart of Division of Competences

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Dear participants, Coming to an EYP session and participating in active political deliberation is definitely a fun affair. With most of you now preparing academically for the Forum before it begins next week, the Chairsteam of EYF 2014 would like to present you with a Guide to the EU. The politics of the European Union and the complex decision making sphere of policy-making require an understanding of the fundamental principles, structures and processes that bind stakeholders together. The European Union, a political construct, has evolved to an elaborate network of actors that interact within a multi-layered system of governance. From Member States to EU institutions and the civil society, the EU is a system with governing principles and intricate processes. This Guide will present you with some key aspects that define the political system of the EU. It will also outline the establishment of a legal system within the Union and the balance of power between national and supranational interests. Moreover, this guide will present the division of competences between Member States and the EU as well as current policy frameworks such as the Europe 2020 and the Horizon 2020 which map out the future of the European economy and society. We hope that this Guide will provide you with valuable information and will increase your understanding of policy-making in the EU. On behalf of the Chairsteam, Deniz Y覺lmazer President, EYF 2014, Enka Youth Forum

Put together by: Deniz Y覺lmazer | Nazl覺 Nur Tamer| Arda Acar | Ali Emre Ak| Eda G羹ler

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I. The EU Explained

This section will provide delegates with insight into the aims, processes and rules of governance of the European Union. The videos introduce key aspects of EU procedural mechanisms and provide fundamental information in many of the current topics on the EU agenda.

The EU Institutions Explained by their Presidents

How it works: European Parliament European Parliament explained: who its Members are, how their work is organised, what powers they yield and the impact of all this on the daily life of Europeans.

A view from the inside: the Presidents of the main EU institutions share their views on how the EU actually works. Who does what? What’s specific to each institution? What is the role of President? How do they see Europe’s future? Since this explanatory video was made, the presidents of the European Commission and the European Council have changed. With the accession of Croatia, the EU now has 28 Member States.

How It Works: What will the Lisbon Treaty change for the Parliament? The EP stands to gain the most from the Lisbon Treaty. Not only will the number of MEPs increase, but also their powers to decide together with the Council on matters such as agriculture, justice and home affairs, and the budget. The EP’s political control of the Commission will also be strengthened.

How it works: European Laws This animated video guides the viewer through the Ordinary Legislative Procedure and highlights the procedures that lead to the adoption of a new piece of legislation. The animated guide also clearly distinguishes the areas of jurisdiction of all the institutions included in the EU legislative procedure.

How It Works: EU Budget Where does the EU get its money from, how does it decide about its budget and who benefits the most? We examine the EU’s budget procedure and focus in on the European Parliament’s changed role in it.

How it works: Trilogue Why do MEPs increasingly often negotiate with the states behind closed doors before even voting in plenary? A look at the how(s) and why(s) of trilogues.

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How it works: What makes for a good single currency? EuroparlTV investigates the Fiscal Compact and the changes it has brought to the rules of economic governance of Member States. The Fiscal Compact builds on the principles of governance of the Stability Pact.

How It Works: Leaving the EU The Lisbon Treaty now provides for it officially: a Member State can leave the EU. In fact, it can just stop implementing EU laws overnight or, more sensibly, negotiate its exit. In any case, itâ&#x20AC;&#x2122;ll all be over in max 2 years.

The Crisis of Credit Visualised This video traces the origins of the credit crisis of 2008 and the elements that led to an international financial turmoil. This video uses visual assistance to explain the complicated financial processes that led to an international crisis.

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II. Institutional Set-Up of the EU Role: Executive, proposes legislation, promotes the EU Members: 28 Commissioners, one for each Member State President: Jean-Claude Juncker (LU) Headquarters: Brussels

Supervises Appoints

Role: Legislative body, directly elected Members: 751 Members of the European Parliament (MEPs) President: Martin Schulz (DE) Headquarters: Brussels, Strasbourg and Luxembourg

Proposes legislation and budget

Role: Deciding on policies and adopting legislation Members: Council configurations according to policy domain (national ministers) President: Rotating presidency, Member States assume presidency for a period of 6 months Headquarters: Brussels

COUNCIL OF MINISTERS

Citizens

National Governments

Co-decision

EU LAW

EU BUDGET

Arbitrates

Supervises

COURT OF JUSTICE

COURT OF AUDITORS

Role: ensure a common application and interpretation of the European Union law Members: one Judge per Member State President: Vassilios Skouris (GR), since October 2003 Headquarters: Luxembourg

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Timeline of Treaties of the European Union

1951 Treaties of Rome : EEC and EURATOM treaties Purpose: to set up the European Economic Community (EEC) and the European Atomic Energy Community (Euratom). Main changes: extension of European integration to include general economic cooperation.

Single European Act Purpose: to reform the institutions in preparation for Portugal and Spain’s membership and speed up decision-making in preparation for the single market. Main changes: extension of qualified majority voting in the Council (making it harder for a single country to veto proposed legislation), creation of the cooperation and assent procedures, giving Parliament more influence.

1957

1965

1997

2001 Treaty of Lisbon Purpose: to make the EU more democratic, more efficient and better able to address global problems, such as climate change, with one voice. Main changes: more power for the European Parliament, change of voting procedures in the Council, citizens’ initiative, a permanent president of the European Council, a new High Representative for Foreign Affairs, a new EU diplomatic service.

Merger Treaty - Brussels Treaty Purpose: to streamline the European institutions. Main changes: creation of a single Commission and a single Council to serve the then three European Communities (EEC, Euratom, ECSC). Repealed by the Treaty of Amsterdam.

1986

1992 Treaty of Amsterdam Purpose: To reform the EU institutions in preparation for the arrival of future member countries. Main changes: amendment, renumbering and consolidation of EU and EEC treaties. More transparent decision-making (increased use of the co-decision voting procedure).

Treaty establishing the European Coal and Steel Community Purpose: to create interdependence in coal and steel so that one country could no longer mobilise its armed forces without others knowing. This eased distrust and tensions after WWII. The ECSC treaty expired in 2002.

2007

Treaty on European Union - Maastricht Treaty Purpose: to prepare for European Monetary Union and introduce elements of a political union (citizenship, common foreign and internal affairs policy). Main changes: establishment of the European Union and introduction of the co-decision procedure, giving Parliament more say in decision-making. New forms of cooperation between EU governments – for example on defence and justice and home affairs.

Treaty of Nice Purpose: to reform the institutions so that the EU could function efficiently after reaching 25 member countries. Main changes: methods for changing the composition of the Commission and redefining the voting system in the Council.

The Lisbon treaty clarifies which powers: belong to the EU belong to EU member countries are shared. The Treaty establishing a constitution for Europe with aims similar to the Lisbon Treaty – the constitution was signed but never ratified.

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Year of Accession to the EU

1951

1957

1973 1981 1986

1995

2004

2007

2013

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now charged with overseeing the process and issuing its opinion on more legislative affairs. It shares budgetary power with the Council, and The European Parliament has gained significant power within the policy-making trifecta and is

European Parliament

Role: Legislative body, directly elected Members: 751 Members of the European Parliament (MEPs) President: Martin Schulz (DE Headquarters: Brussels, Strasbourg and Luxembourg

Overview Ever since 1979, every five years all citizens of the EU get to elect their representatives in the European Parliament. All 28 Member States have a fixed amount of representatives, ranging from 6 for smaller Member States such as Luxembourg and Malta up to 96 for larger Member States like Germany. The allocation of seats is roughly dependent on the countryâ&#x20AC;&#x2122;s share of the EU population. MEPs spend most of their working time in Brussels, attending committee and political fraction meetings. Once a month they travel to Strasbourg for a week to have the plenary session, where they discuss upon resolutions in general and where they vote. Most Members of the European Parliament get elected through their national political affiliation, and at the European level they seek to join like-minded political groups. Keep in mind that the composition is very volatile, with MEPs defecting from their original groups. The main responsibilities of the European Parliament are legislative; together with the Council of the EU, the European Parliament formally codecides on adopting or rejecting EU legislation. The European Parliamentâ&#x20AC;&#x2122;s role in policy-making has been elevated with the Treaty of Lisbon allocating more powers to it and assigning it more jurisdictions in several policy domains within which the European Parliament did not have a strong voice. The European Parliament also supervises process and entities within the decision-making structure of the EU and has been awarded an oversight jurisdiction in an effort to safeguard democratic principles of EU governance.

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thereby influences EU public spending.

Powers of the European Parliament - Under the codecision procedure, it shares power with the Council over discussion and approval of new legislative proposals, and of the EU Budget. - It may encourage or pressure the European Commission to develop new proposals. - The European Commission, the Council of Ministers and the presidency of the Council of Ministers must regularly report to the European Parliament. - It has the right to confirm or reject the European Councilâ&#x20AC;&#x2122;s nominees for president of the European Commission and High Representative for Foreign Affairs and Security Policy. - It has the right of approval over appointment of the College of Commissioners, the management team of the European Central Bank and the Court of Auditors. - It may compel the removal of the College of Commissioners. - It manages the office of the European Ombudsman.

The Politics of the European Parliament The Leadership of the European Parliament comprise of a President and 14 Vice-Presidents who also chair plenary meetings/discussions. The organising of internal processes is a task of the Bureau of the Parliament which is also charged with intra-institutional administrative matters. The political decisions and the interaction strategy of the European Parliament are determined in the Conference of Presidents and the coordination of the agendas of the respective committees is determined in the Conference of Committee Chairs. Political groups are central mechanisms for structuring debate and coalition formation in the legislative process. The all have a secretariat, research staff and financial resources as well as party and/or group leaderships that determine the vital political issues. Political groups have a three-line whipping system in order to ensure cohesion. The formation of coalitions in the

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Key Terms and Concepts

European Parliament is frequent and necessary depending on the voting procedure; the â&#x20AC;&#x2DC;grand coalitionâ&#x20AC;&#x2122; as it has come to be known between the EPP and the PES (S&D) is somewhat of a necessity for decisions that require majority voting.

- Conference of Presidents - Consent Procedure - Consultation Procedure - Cooperation Procedure - Dual Mandate - European Ombudsman - Member of the European Parliament - Ordinary Legislative Procedure - President of the European Parliament - Political Groups - National Political Affiliation in the European Parliament

Committees of the European Parliament are the vessels of implementing legislative scrutiny in the Parliament. Committees are charged with proposing amendments to legislative proposals in the form of reports and draft resolutions. The Rapporteurs lead the working procedure in parliamentary committees and are tasked with balancing their partyâ&#x20AC;&#x2122;s interests, the interests of other institutions and relevant agencies, and policy positions from associations, interest groups and civil society. The European Parliament comprises of 20 Standing Committees and 2 sub-committees. Under specific Rules (175 & 176), the European Parliament has the capacity to establish temporary committees regarding policy elements that arise and require working procedures tailored to the policy domain.

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Groups in the European Parliament

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Council of Ministers Powers of the Council of Ministers - It shares powers with the European Parliament for discussing and passing laws as well as approval of the EU budget. - It coordinates economic policies of the Member States through the Eurogroup. - It coordinates Justice and Home Affairs policies of the Member States through the JHA. - It defines and implements the Common Foreign and Security Policy (CFSP). - It concludes international agreements on behalf of the EU.

Overview The Council is one of the two essential decisionmakers. It meets in different configurations, depending on the issues on the agenda. For example, if there are agricultural matters to be discussed, the 28 national Ministers of agriculture will gather in Brussels in the Agriculture and Fisheries configuration to discuss national preferences and decision-making at the EU level. The purpose of the gatherings is to discuss, amend, and agree on legislation. Additional tasks of the Council are to define the EUâ&#x20AC;&#x2122;s foreign policy, and to coordinate Member Statesâ&#x20AC;&#x2122; national policies. Together with the Parliament, it also decides on the budget of the EU.

The Politics of the Council of Ministers The voting system of the Council has changed several times over the years; when once unanimity voting was a prerequisite for most policy domains, ministers could cast their vote on specific policy issues using either simple majority for procedural issues. Unanimity voting is used for matters relating to membership, taxation, the CFSP, the CSDP, the finances of the Union and other matters that require a single voice. For all other matters, the Council employs the Qualified Majority Voting (QMV) which is a voting system whereby proposals must win substantially more than a simple majority. Under this arrangement, each Minister is given several votes roughly in proportion to the population of his or her Member State. In order to win the majority voting, at least 14 Member States must be in favour with a total of at least 255 votes out of 345 (approximately 74% of the vote).

The Presidency of the Council rotates every six months among Member States. In 2014, Greece and Italy are the countries that will hold the rotating presidency with Latvia and Luxembourg sharing the 2015 presidency and the Netherlands and Slovakia sharing the presidency for 2016. The presidency prepares and coordinates the work of the Council, setting the agendas for several meetings, working parties and committees. It arranges and chairs most meetings of the

Qualified Majority Voting in the Council of Ministers

The Coreper is the Committee that handles most of the workload of the Council before the ministers meet; each Member State has a permanent representation in Brussels and these representations include experienced public officers with policy knowledge and expertise. Almost 85% of the detailed work of the Council is completed

Member State Votes Germany, UK, France and Italy Spain and Poland Romania The Netherlands Greece, Czech Republic, Belgium and Hungary Austria, Bulgaria, Sweden Slovakia, Denmark, Finland, Ireland and Lithuania Latvia, Slovenia, Estonia, Cyprus and Luxembourg Malta

the respective configurations.

Total

Representatives) and represents the Council in inter-institutional meetings and configurations. Lastly, it mediates intergovernmental bargaining to form cohesive institutional preferences and policy positions.

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29 27 14 13 12 10 7 4 3 345

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European Council Key Terms and Concepts

Role: Defines the EU’s general political direction and priorities Members: Top political leaders; Heads of State or Government of the Member States, together with its President and the President of the European Commission President: Donald Tusk (PL) (as of November 1st, 2014) Headquarters: Brussels

Coreper European Council Presidency of the Council of Ministers President of the European Council Qualified Majority Voting (QMV) Summitry Council configurations

Council confusion: Which is which?

Overview Originally created in 1974 intending to establish an informal platform for discussion between heads of states or government, the European Council became an EU institution when the Treaty of Lisbon entered into force on 1 December 2009. Along with the aforementioned members, the High Representative of the Union for Foreign Affairs and Security Policy takes part in the European Council’s work. Depending on the agenda requirements the members of the European Council may decide each to be assisted by a minister and, in the case of the President of the Commission, by a member of the Commission .

European Council: Heads of State, highest decision making body in the EU Council: Also known as the Council of Ministers, gathers government ministers in their specific policy fields. The Council is one of the two main legislative bodies of the EU, together with the Parliament. Council of Europe: Not EU-related. This Council is an intergovernmental organisation that mainly deals with protection of human rights, democracy and rule of law. The Council of Europe has 47 Member States, and is located in Strasbourg, France.

The European Council meets in Brussels, typically twice every six months. At these meetings, the political leaders decide by consensus on the overall direction and priorities of the EU, and provide the necessary impetus for its development, in the form of ‘conclusions’. These conclusions are non-binding, as the European Council cannot pass laws.

Powers of the European Council - The European Council is regarded as the ‘board of directors’ of the EU, consisting of the heads of government of the Member States. - The European Council is chaired by its president who serves for a period of two and a half years (renewable only once). - It is responsible for making nominations to senior positions, including the president of the European Commission, the High Representative and the president of the European Central Bank.

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The President of the European Commission

European Commission

The President of the European Commission is the dominating figure of the institution. The president is tasked with ensuring the effective management of the College, appearing alongside meetings of world leaders representing the voice of the Union, mediating the negotiations at European Council summits and holding bilateral meetings with national leaders of international partners. The president of the European Commission convenes and chairs meetings of the College, lays down the guidelines for the work of the Commission, distributes policy portfolios, assigns duties and policy responsibilities, takes questions before the European Parliament and represents the European Commission in dealings with other EU institutions and at key meetings of national governments and their leaders.

Role: Executive, proposes legislation, promotes the EU Members: 28 Commissioners, one for each Member State President: Jean-Claude Juncker (LU) Headquarters: Brussels

Overview According to the Treaty of Lisbon, the European Commission is charged with promoting the general interest of the Union , ensuring the application of the Treaties and overseeing the application of Union law. The European Commission fulfills its tasks through the executive powers of initiation and agenda setting as well as implementation. Its main responsibilities relate to managing the EU budget and representing the EU in international affairs, negotiations and commitments. The European Commission is the institutional barometer of European integration; its monopoly over the generation of most legislative proposals grants the European Commission the highest degree of influence over the legislative framework of governance for supranational decisions and their application in Member Statesâ&#x20AC;&#x2122; legal environments.

Directorates-General and Services The DGs are the equivalent of national government departments; they oversee the development and implementation of policies and laws in specific domains. The DGs are staffed with a mix of full-time European bureaucrats known as fonctionnaires, and of national experts seconded from the Member States on short-term appointments. Each DG is headed by a director-general; they are people with a direct link to the Commissioner.

The European Commission is comprised of five key components: the College of Commissioners, the president of the European Commission, the Directorates-General and Services, a network of advisory and executive committees and the Secretariat General.

Committees The process of implementation is monitored by a network of several hundred committees and sub-committees participating in the comitology. These committees can have the following forms: - Advisory committees charged with scrutinising less politically sensitive issues. - Management committees charged with focusing on areas such as agricultural policy. Management committees have the power to refer Commission measures to the Council of Ministers and hence overrule the Commission. - Regulatory committees charged with referring Commission measures to the Council of Ministers and the European Parliament. - Regulatory committees with scrutiny.

Structure The term Commission refers to the institution in its entirety as well as the 28 member College of the Commission. The Commission is divided into DGs which are directed by an appointed official. Commissioners are nominated by each Member State and after their hearings and formal appointment the portfolios of the European Commission are divided among them. Each Commissioner is appointed for a term of 5 years and all 28 Member States have a national official direct a DG. Each Commissioner is supported by a small staff of assistants and advisors that is referred to as the cabinet.

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The President of the European Key Terms and Concepts Commission

European Commission

Powers of the European Commission

- It develops and makes proposals for new EU laws and policies. - It oversees the implementation of laws and policies through the Member States. - It develops and manages the EU budget. - It represents the EU in international trade negotiations. - It oversees the process by which applications for membership of the EU are considered. - It manages overseas delegations. - It coordinates the EUâ&#x20AC;&#x2122;s official development assistance and humanitarian aid.

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Cabinet College of Commissioners Comitology Power of initiation Directorate-General President of Commission

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European Court of Justice Powers of the European Court of Justice

Role: ensure a common application and interpretation of the European Union law Members: one Judge per Member State President: Vassilios Skouris (GR), since October 2003 Headquarters: Luxembourg, Luxembourg

- Supreme legal body of the EU. - Final court of appeal for all matters relating to EU law. - Issues preliminary rulings when national courts ask for a ruling on the interpretation or validity of an EU law that arises in a national court case. - It makes decisions on direct actions when an individual, corporation, Member State or EU institution brings proceedings directly before the Court, usually with an EU institution or a Member State as defendant.

Overview The European Court of Justice (ECJ) is the institution that ensures the adequate and systematic application of the European Union law. It covers the role of the guardian of the uniformity of the interpretation of the EU legislation and its conformity to Member Statesâ&#x20AC;&#x2122; legal systems as well. It is mandatory for national courts to refer to the ECJ both if the interpretation of EU law is not clear and if there is a conflict between EU and national law.

Key Terms and Concepts -

As the judicial arm of the EU, the ECJ has made decisions that have expanded and clarified the reach of EU law by establishing clear rules of judicial governance. Principles such as the direct effect and the supremacy of EU law have helped transform Treaties into a legal body that resembling that of a constitution for Europe. The Court of Justice is the final court of appeal and is assisted by the General Court and the EU Civil Service Tribunal. The two main courts are comprised of 28 judges while the Tribunal is comprised of 7 judges.

Structure of the European Court of Justice - Judicial arm of the EU. - Judges meet as chamber of three to five judges or as a Grand Chamber of 13 judges. - It is assisted by eight advocates-general appointed for a renewable term of six-years. Advocates-general are charged with reviewing cases, studying arguments and delivering opinions.

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Advocates General Constitutional Court Direct action Direct effect EU Civil Service Tribunal European Court of Human Rights General Court Judge-rapporteur Judicial authority Mutual recognition Preliminary ruling Supremacy of EU law

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European Central Bank Structure

Role: Managing monetary policy; maintaining price stability Members: Euro area national central banks President: Mario Draghi (IT) Headquarters: Frankfurt

The ECB is comprised of three decision-making bodies that are charged with fulfilling its objectives according to the ECB’s mandate. These bodies are: The Executive Board The Executive Board is responsible for the implementation of monetary policy and the day-to-day operations of the ECB. It can issue decisions to national central banks and it is composed of the President of the ECB (Mario Draghi), a Vice-President of the ECB and four other members. The Executive Board meets weekly.

Overview Established in 1998 with the Treaty of Amsterdam, the primary objective of the European Central Bank (henceforth referred to as ECB) is to maintain price stability within the Euro area and the Eurozone . The ECB is governed directly by EU law but its institutional set-up resembles that of corporations; its shareholders and stock capital require a more intricate institutional setup than that of its institutional counterparts in the EU framework of governance. The ECB’s capital is 5 billion euro and it is held by the national central banks of Member States who are its primary shareholders. The initial allocation capital key was determined upon establishment but it is adjustable since it’s pegged to the population and GDP of Member States. Shares at the ECB are not to be transferred or used as collateral in the financial system.

The Governing Council The Governing Council is the primary decisionmaking body of the European Central Bank and it is composed of the Executive Board and the governors of the national central banks of Euro area Member States (6+18 Members). The General Council The General Council of the ECB deals with transition issues relating to Member States’ adoption of the common currency. The General Council assists in that transition process by fixing the exchange rates between national currencies and the Euro while the former is tested in the ERM II.

Beyond the maintenance of price stability in the Euro area, the ECB is tasked with implementing monetary policy, setting up the benchmark interest rate, i.e. the interest rate that it charges when lending to commercial banks, and taking care of the foreign reserves of the European System of Central Banks (ESCB). Further tasks include conducting foreign-exchange operations, promoting the smooth operation of payment systems such as TARGET2 payments system and the TARGET2 securities (still in development). The ECB holds the exclusive right to issue Euro banknotes whereas Member States have the right issue Euro coins after consultation with the ECB. Lastly, the ECB is responsible for collecting macroeconomic data from national central banks in order to ensure the effective implementation and oversight of macroprudential regulation.

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III. Legislative Procedures Proposal from the Commmission to the EP and Council Parliament first reading: no EP amendments

Council first reading: the Council does not modify the text

The act is adopted

Parliament first reading: EP amendments Commission on EP amendments (amended Commission proposal) Council first reading: the Council does not approve the outcome of the EP first reading and adopts a common position Commons opinion on the common position Parliament second reading (deadline 3+1 months)

Parliament approves the common position or does not take a decision within the deadline

The act is adopted

1st Reading

Council first reading: the Council approves all amendments

The act is adopted

2nd Reading

Parliament adopts amendments to the common position by an absolute majority of its Members

Parliament accepts the common position by an absolute majority of its Members

Commision opinion on EP amendments

The act is not adopted X

Council second reading (deadline 3+1 months)

The council approves all Parliamentâ&#x20AC;&#x2122;s amendments

The act is adopted

The council does not approve all Parliamentâ&#x20AC;&#x2122;s amendments Conciliation commitee is convened, within a period of 6 + 2 weeks, and has a further 6 + 2 weeks to reach agreeement Successful conclusion to conciliation

The EP and council are unable to adopt the joint text ithin the period of 6 + 2 weeks

The act is not adopted X

3rd Reading

Third reading: within a period of 6 + 2 weeks approval of the joint text by the EP (majority of votes cast) and by the Council (QMV)

The act is adopted

Unuccessful conclusion to conciliation

The act is not adopted X

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1. Community Method Ordinary Legislative Process

The Council is then given three months to either approve the amendments in which case the new act is adopted, or reject the proposal in which case the President of the Council together with the President of the Parliament shall, within six weeks, set up a meeting with the conciliation committee.

Article 289 TFEU lays down the core setting of the Unionâ&#x20AC;&#x2122;s main legislative procedure. The Parliament and Council shall jointly adopt and alter Union legislation based on the initiation of the Commission. The procedure is then further defined in article 294 TFEU. Firstly, the European Commission shall draft the initiative, which will be presented to both Parliament and Council. What then follows is the first reading of the draft legislation, where the Parliament will present changes to the draft legislation and communicate the draft to the Council.

The committee consists of members of the Council and Parliament and will aim at reaching a common ground on the proposed legislation. If within 6 weeks the committee does not agree on a draft, the act will not be adopted. If the committee reaches an agreement its version of the draft needs to be approved by a qualified majority in the Council and majority in the Parliament. If all parties agree the new act is adopted, thus concluding the ordinary legislative procedure.

The Council will then either approve the legislation or submit reasons against the proposal and communicate an altered draft to the Parliament. If the Council approves the draft a new law has been made, but if it does not and the Parliament will be given the reasons as to why not and the second reading of the draft will begin. The Parliament will have three months to take action on the proposal of the Council. There are three possible courses of action: the Parliament can with a majority reject the proposal deeming the act not to have been adopted or the can submit changes to the proposal and communicate it back to the Council. If the Parliament agrees with what was said by the Council or fails to uphold the time limit of three months, the legislation is passed corresponding to the position of the Council.

Intergovernmental Method

During this procedure the Council may either unanimously or through qualified majority accept legislation based on the proposal of the European Commission, however the Council requires the consent of the Parliament to ultimately adopt the new legislation, thus although there is currently not an amendment procedure the Parliament still carries a vital role as it may indefinitely delay the process.

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IV. Legal Systems of the EU controversial in the conflict about the European Constitution (TCE)5 . In the context of the Treaty

1. Sources of Law The sources of EU law (hereinafter referred to as Union law) can be divided into two groups: the primary source of Union law (hereinafter referred to as primary law) and secondary source of Union law (hereinafter referred to as secondary law). Just as their terms suggest, the two sources of law stand in a hierarchy of norms with the primary law ranking above the secondary. Therefore secondary law can only be effective as long as it is consistent with the primary law. Yet it is legal and necessary that the secondary law substantiates the primary law and is interpreted in its light. The differentiation between primary and secondary law is especially important in the process of lawmaking: While secondary law is enacted by the EU institutions (Article 288 I TFEU2), the enactment or amendment of primary law is solely within competence of the Member States (Article 48 TEU3).

2. Primary sources of Union law The primary law consists mainly of the founding treaties of the European Communities and the Charter of fundamental rights of the EU4.

i. The founding treaties of the European Communities The most relevant primary law is tabled in the founding treaties of the European Communities. These are the European Coal and Steel Community (ECSC, Treaty of Paris,1951), the European Economic Community (EEC, Treaty of Rome, 1957) and the European Atomic Energy Community (EAEC or Euratom, Euratom Treaty, 1957). Certainly not only the original treaties are part of the primary law but also the later amendments of them, i.e. the Treaty of Maastricht, the Treaty of Amsterdam, the Treaty of Nice, as well as the Treaty of Lisbon and existing TEU and TFEU.Tthe accession treaties with Member States joining over time are also part of the primary law.

ii. The Charter of fundamental rights of the EU The question whether or not to integrate a charter of fundamental rights was one of the most

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of Lisbon the thought of integrating such a charter in the treaties themselves was rejected. Instead, the Charter of fundamental rights of the EU that was originally proclaimed in 2000 gained full legal effect by the entry into force of the Treaty of Lisbon in 2009. It is therefore now elevated to the same status of primary law as the treaties themselves (Article 6 I TEU).

3. Secondary sources of Union law Ranked directly below the primary law is the secondary law. The most important legal acts of the secondary law are summarised in Article 288(1) TFEU. Secondary legal acts may be agreed upon and communicated to the Member States in the following forms: - Regulation; - Directive; - Decision; - Recommendation; - Opinions.

i. Regulations The legal act of a regulation is laid down in Article 288(2) TFEU: â&#x20AC;&#x153;A regulation shall have general application. It shall be binding in its entirety and directly applicable in all Member States.â&#x20AC;&#x153; Any regulation shall be binding in its entirety and directly applicable in all Member States. This means that with its entry into force a regulation unfolds legal effect in all Member States without the necessity of incorporation or transformation by a national body. The directly transposable nature of a regulation is directly applicable to Member States, EU institutions and European citizens. Therefore a regulation can directly affect rights and obligations of the individual citizen. Furthermore the direct applicability of a regulation and its universal primacy imply that it rules out opposing national law.

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fects8 while usually they can only come into force through the national legislation.

ii. Directives The concept of a directive is defined in Article 288 III TFEU: “A directive shall be binding, as to the result to be achieved, upon each Member State to which it is addressed, but shall leave to the national authorities the choice of form and methods.“ As stipulated by Art. 288 III TFEU the lawmaking by means of a directive is a two-tiered process: Initially the EU enacts the directive which then has to be incorporated by the addressed Member States. The choice of form and methods shall be left to the national authorities as long as they achieve the results that are laid down in the contents of the directive. This means that the creative leeway goes only so far as the objective is still achievable. The more detailed a directive is, the more detailed the incorporated law must be, so that sometimes the incorporation comes down to nothing more than a transcription. Regarding the choice of form and methods the European Court of Justice (ECJ) has made two confinements: - First of all, the Member States are bound to choose those form and methods that are of practical effect and the most adequate to achieve the objective that is outlined in the directive. This principle is called “direct effect“. - Secondly the rank of the law to be incorporated must comply with the rank of the law that regulated the matter in question until then. Due to the wide scope that is inherent with directives, often Member States fail to transpose them correctly. The ECJ has thus developed measures to further ensure the correct incorporation. Firstly it has designed the requirement for an interpretation in conformity with the directive. This obligation requires national courts to interpret the law so as conform to the Directive’s objective. This principle is derived from the principle of loyal cooperation6 and the aforementioned principle of direct effect. In cases where interpretation in conformity with the directive is impossible in the respective Member, the ECJ has decided that, under certain conditions7, directives can unfold vertical ef-

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decisionmaking_process/l14527_en.htm

If even the vertical effect of a directive is impossible and the Member State has failed to incorporate the directive correctly the Member State can be charged for compensation of damages.

In a state-citizen (vertical) relationship only, not in a citizencitizen (horizontal) relationship. 9

iii. Decisions The legal act of a decision is specified in Article 288 IV TFEU: “A decision shall be binding in its entirety. A decision which specifies those to whom it is addressed shall be binding only on them“ Like the directive, the decision is binding in its entirety and thus constitutes rights and obligations for the addressee. Unlike the directive, the decision only sets out an arrangement for one individual case and not a general rule. The addressee of a directive can be one or several Member State(s) and any natural or legal person9.

iv. Recommendations and opinions Article 288 V TFEU lays down the concept of recommendations and opinions: “Recommendations and opinions shall have no binding force.“ Contrary to all other legal acts named in Article 288, recommendations and opinions have no legally binding character. Nonetheless they have a strong political significance and are often obeyed by choice. While most recommendations and opinions are addressed to Member States, they can also be addressed to any natural or legal person. 2

The Treaty on the functioning of the European Union (TFEU, formerly Treaty of Rome) goes into deeper detail on the role, policies and operation of the EU, while the Treaty on European Union (TEU, formerly Maastricht Treaty) lays out the basic principles, values, authorisation and competences of the EU Institutions. 3

see footnote 2

General principles of law such as the principle of democracy and common law can also be primary law. 5

The Treaty establishing a Constition for Europe (TCE) was an unratified treaty with the intent to create a consolidated constitution for the EU 6

The principle of loyal cooperation between Member States is laid down in Article 4 III TEU. 7

for further information see:

http://europa.eu/legislation_summaries/institutional_affairs/

A legal person can, e.g., be a firm or corporation of any kind.

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V. Competences 1. Definitions

3. Categories

Competence: Eurospeak for decisionmaking power. Since the Treaty of Lisbon, competences of the EU are listed in the Treaty of the Functioning of the European Union (TFEU), arts 3-6.

- Exclusive competence (Art 3 TFEU): In these policy fields the Unionâ&#x20AC;&#x2122;s institutions have the sole power to legislate. Member States have definitely and irreversibly forfeited their sovereignty in these areas to the Union.

2. Principles

- Shared competence (Art 4 TFEU): In this category both the EU and the Member States have the power to legislate. This category is, unofficially, split up in two sub categories. Exclusive shared competence: Policy fields governed by the principle of pre-emption. Parallel shared competence: Policy areas where the Union can legislate without preventing Member States from exercising their legislative competence.

The main purpose of these competences can be seen as determining the division of power between the Union and the Member States. - Principle of Conferral (Art 5(1) TEU): Competences of EU institutions are limited to those conferred on them by the Member States. This means that the Unionâ&#x20AC;&#x2122;s institutions cannot assume more power at will. - Principle of Subsidiarity: Decisions should be made at the lowest level possible. The aim is to legislate as close to the citizens as possible. Thus, the EU may only act when action on the EU level would be more effective than action at national, regional or local level. Two criteria determine whether action should be taken at the EU level: a. Advantages of scale b. Overcoming specificity of regional preferences

- Supporting, coordinating or supplementing competence (Art 6 TFEU): the EU has little power to issue legally binding acts in these fields. It is not allowed to harmonise different national laws in these fields. Instead, it can set up programmes that support, coordinate or supplement national legislation. - Member State competences: all the major areas of taxation and public spending, such as healthcare, housing, welfare provision and pensions.

- Principle of Proportionality: The EU actions should be limited to the means necessary to achieve specific aims. - Principle of Pre-emption: In the category where competences are shared (cf. infra), this principle dictates that Member States can only act in fields where the Union has not acted or where it has appealed its acts.

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4. Infochart of Competences Exclusive

Shared

Support, coordinate or supplement

Customs union

Exclusive if EU has policy

Non-exclusive

Certain human health policies

Eurozone monetary policy

Internal market

R&D policies

Industry

Conservation of marine resources

Certain social policy

Outer space policies

Culture

Common commercial policy

Cohesion policy

Development cooperation

Tourism

Agriculture and fisheries

Humanitarian aid

Education and training

Environment

Civil protection and disaster prevention

Consumer protection

Administrative cooperation

Transport

Coordination of economic, employment and social policies

Energy

Common foreign, security and defence policies

Old third pillar 'Area of freedom, secuity and justice' Certain public health policies