2. The institutions of the European Union are the seven principal decision-making bodies of the European Union (EU). European Union. European Union. 1  It eliminates all border controls between members. It consists of the heads of state or government of the member states, together with its President and the President of the Commission. clerical or secretarial tasks, office management and other equivalent tasks The Commission has the following functions: Legislation – The Commission initiates legislation. A Brief History of the European Union 1950 2008 Same year: the “Single European Act” was signed, revising the Treaty of Rome and re-launching European integration 18. However, for issues relating to security, agreement must be unanimous. To be more specific, EU has the purpose of developing and maintaining a single market within Europe with goals and objectives revolving around free trade or free movement of goods and services, as well as the free movement of people and capital. Kimberly Amadeo has 20 years of experience in economic analysis and business strategy. And, perhaps more importantly, how has it operated in the past and how does it work today? Unsurprisingly, the European Union primarily uses the euro as currency, which is reportedly the second most-used currency in the world, under the U.S. dollar. Court of Justice of the European Union. Read the text below carefully: Article 17. Bulgaria and Romania joined in 2007., In 2009, the Treaty of Lisbon increased the powers of the European Parliament. Most of us hear about the European Union in the news, and we know, more or less, that it represents several European countries in a united, global front. Action Alerts PLUS is a registered trademark of TheStreet, Inc. One EU country, Ireland has declined the Schengen benefits. The European Central Bank controls the euro and manages the union's monetary policy. It increased EU powers, border control, immigration, judicial cooperation in civil and criminal matters, and police cooperation. The EU's top three exports in 2018 were petroleum, medication, and automobiles; while its top imports are petroleum, communications equipment, and natural gas. The European Parliament has two theoretical powers but in reality it is unlikely to ever use both. This article draws substantially on the authors’ book The Council of Ministers of the European Union (1996) to be published by Macmillan Press.The relevant sections are reproduced here by permission of the publishers. 1. They are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain., The European Central Bank is the EU's central bank. The Treaty on the Functioning of the European Union (TFEU) came into force on 1 December 2009 following the ratification of the Treaty of Lisbon, which made amendments to the Treaty on European Union and the Treaty establishing the European Community (TEC).The TFEU is an amended and renamed version of the TEC. The European Union has been a staple of the global stage since the 1990s, but its history and present are becoming increasingly complicated. Its top export partner is the United States and its top import partner is China.. It enables a lot of the beaucracy that used to be involved with those issues to be by passed. A. You've likely seen images of that blue and gold-starred flag flying in many of Europe's most powerful countries. The Council's main job is to create and propose new policies and legislation for the European Union; it operates under a different EU president every six months. This is a power that it shares with the European Parliament.In many cases, legislation must be passed by both the Council and the Parliament to become law. The modern European Union traces its origins to economic coalitions formed between Belgium, France, West Germany, Italy, Luxembourg and the Netherlands during the 1950s. The European Union, How It Works, and Its History, The Difference Between the Eurozone and the EU, 3 Reasons Why WTO Membership Is So Important, Time Is Running Out for a Low-Cost European Vacation. So, put simply, the European Union is a coalition of 28 (soon to be 27 following Britain's bow out from the union in 2019) European countries, designed to tear down trade, economic and social barriers and promote flourishing in these areas. The European parliament, The court of justice, The economic and social committee, and; The monetary committee. At the same time, it must balance the needs of its independent fiscal and political members. It gave the EU the legal authority to negotiate and sign international treaties. The European Union’s main objective is to promote peace, follow the EU’s values and improve the wellbeing of nations. HOW THE EUROPEAN UNION WORKS The last amending treaty — the Lisbon Treaty — was signed in Lisbon on 13 December 2007, and came into force on 1 December 2009. the Union's policies and activities, in particular with a view to promoting sustainable development. Three bodies run the EU. ; Upholding EU law – The Commission can take action against businesses or states … What does the Council of the European Union do? The modern European Union traces its origins to economic coalitions formed between Belgium, France, West Germany, Italy, Luxembourg and the Netherlands during the 1950s. The primary purpose of the European Union has been adopted from the collective goals and objectives of the European Economic Community. "Ordinary Legislative Procedure." The role of the EEAS is to try and bring coherence and coordinating to the European Union's international role. Accessed Aug. 4, 2020. Xthe European Commission, which represents the interests of the EU as a whole. European Customs Union: The European Customs Union is an alliance formed by the members of the EU, and serves to fulfill two primary functions for the states which form the union. Today the EU is still dealing with many major issues (including the ongoing migration crisis and the upcoming Brexit). It also has appointment and dismissal powers over the Commission and forms the budgetary authority of the EU with the Council of the European Union. Additionally, the treaty established economic standards, including debt and budget requirements in relation to each country's gross domestic product (GDP), as well as inflation levels. By using The Balance, you accept our. The EU's trade structure has propelled it to become the world's second-largest economy after China. 1. "The History of the European Union." Read the text below carefully: Article 17. 26.10.2012 Official Journal of the European Union C 326/53EN (1) These references are merely indicative. Accessed Aug. 4, 2020. The EU's concern over Greece leaving the eurozone nearly caused several other countries, including Italy and Portugal, to suffer sovereign debt crises, making many skeptical of the EU's policy to back the debt of its members. 1. It also has appointment and dismissal powers over the Commission and forms the budgetary authority of the EU with the Council of the European Union. Accessed Aug. 4, 2020. They make sure all members act consistently in regional, agricultural, and social policies. "Which Countries Use the Euro." According to the European Union's official website, the union's purpose is to promote peace, establish a unified economic and monetary system, promote inclusion and … A Brief History of the European Union 1950 2008 Same year: the “Single European Act” was signed, revising the Treaty of Rome and re-launching European integration 18. Learn more about the EU … European law is still established by international treaties.. 1981 Greece I. "Members of the European Council." It also plays a significant role in supporting international development and … European Central Bank. The European Commission proposes new legislation. For residents in these countries, passage to and from other Schengen Area countries is much easier - not requiring visas or showing passports. European Union. The role of the EEAS is to try and bring coherence and coordinating to the European Union's international role. As the executive body, the commission is most responsible for the day-to-day operations of the EU.The commission is The institutions of the European Union are the seven principal decision-making bodies of the European Union. There may be police checks, based on police information and experience, that are not equivalent to border checks. The most widely-watched value is how much the euro's value is compared to the U.S. dollar. The dollar is the unofficial world currency., The eurozone consists of all countries that use the euro. The main objectives are: A common European area without borders. However, in 2019, Britain is set to leave the European Union, bringing the total down to 27 countries. The TFEU includes enhancements to the social dimension of the European Union. What does the European Commission do? "The 27 Member Countries of the EU." Despite the many incentives to remain in the European Union, voters for leaving credited skepticism over the euro's stability, lack of sufficient national decision-making power, and concerns over immigration, according to numerous reports. "What Is the Common Customs Tariff?" The Executive Commission: The executive commission of the European Union is the very important institution. In June, the EU's Legal Affairs Committee, JURI, voted to move ahead with the initiative, which, although largely technical in nature, had two highly controversial provisions that caught the spotlight - one, Article 11, is a "link tax," which would require platforms like Google Four non-EU countries, Iceland, Liechtenstein, Norway, and Switzerland have adopted the Schengen Agreement. Additionally, data gathered by the EU's Committee of the Regions uncovered some potential problems correlating with Brexit, encompassing both cultural and economic spheres. Accessed Aug. 4, 2020. Its 27 member countries are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.. It … "Countries." A Brief History of the European Union 1950 2008 16. the European Parliament,; the European Council (of Heads of Government),; the Council of the European Union (of national Ministers, a Council for each area of responsibility), To be more specific, EU has the purpose of developing and maintaining a single market within Europe with goals and objectives revolving around free trade or free movement of goods and services, as well as the free movement of people and capital. German Foreign Minister Heiko Maas wrote in German paper Handelsblatt about concerns over the current state of financial affairs in the EU, especially in relation to the United States. Contributions of 120 billion euros a year from member states fund the EU. The Council is responsible for coordinating member states' policies in specific fields, such as: 1. economic and fiscal policies: The Council coordinates member states' economic and fiscal policies to strengthen economic governance in the EU, monitors their budgetary policies and strengthens the EU's fiscal framework, and also deals with the legal and practical aspects of the euro, financial markets and capital movements 2. education, culture, youth and sport: The Council adopts EU policy frameworks an… What Was Brexit, and How Did It Impact the UK, EU, and the US? Contract staff positions are available for a wide range of jobs, requiring different levels of qualifications. Residents and visitors can cross borders without getting visas or showing their passports.. A Brief History of the European Union 1950 2008 17. The European Council develops the strategies that guide EU policies, and is composed of the heads of state of the member countries, in addition to the president of the European Commission (whose function we'll explain in a minute). Accessed Aug. 4, 2020. Established in 1993, the European Union's headquarters are currently located in Brussels, Belgium. European Commission. The European Parliament is the directly elected parliamentary institution of the EU. The EU interceded when Greece threatened the eurozone by falling deeply into debt. The functions of the European Commission. The institutions and bodies must be listed in protocol order.. It eliminated customs duties in 1968. The Treaty on the Functioning of the European Union (TFEU) came into force on 1 December 2009 following the ratification of the Treaty of Lisbon, which made amendments to the Treaty on European Union and the Treaty establishing the European Community (TEC).The TFEU is an amended and renamed version of the TEC. Coordinates. 2008 was certainly not a banner year for anyone. However, as of June 2016, England voted to succeed from the European Union and leave it - infamously coining the term "Brexit" for the British exit from the EU. In addition, Bulgaria, Croatia and Romania are pending approval to enter the Schengen Area as well. Accessed Aug. 4, 2020. European Council. The Commission shall promote the general interest of the Union and take appropriate initiatives to that end. European Union. In total, there are 26 members of the Schengen Area. As mentioned earlier, the European Union is governed by three main bodies - the EU Council, the EU Parliament and the EU Commission. The European Parliament and other institutions see to it that these objectives are achieved. Over 1 million refugees from the Middle East and parts of Africa flocked to EU countries, including Italy, Germany and Greece - but following a brutal attack in Cologne on some 600 women by refugees in 2016, many EU countries halted immigration and ended up leaving thousands of refugees in Greece and elsewhere. The European Coal and Steel Community had six founding members: Belgium, France, Germany, Italy, Luxembourg, and the Netherlands. What Is an Exchange Rate Mechanism (ERM)? Much of the EU is still at odds with each other over this polarizing issue. "The Schengen Visa." The European Union is a unified trade and monetary body of 27 member countries. While an economic disaster of historical proportions was happening in the United States, the EU was facing its own financial crisis when the European Central Bank raised interest rates to 4.25% to offset the rising inflation brought on by conflated oil prices. While Croatia's joining of the EU was controversial in its own right, the EU has attempted to remain neutral in the recent Croatia-Slovenia border dispute. World Integrated Trade Solution. "What Is the Euro Area?" The treaty broadened the newfounded EU's scope, which now includes both economic and social issues - like education, public health, technological development, and environmental protection, to name a few. Formerly known as the EC Treaty, the Treaty of Rome or the Treaty establishing the European Community. The following list indicates the official title, following protocol order since 1 December 2009 (entry into force of the Treaty of Lisbon). The European Parliament is the second of the EU’s two law-making bodies. Tejas Shailendra Risbood. The function of the European Union (EU) is to enable closer relations between the member states. "Why the US Dollar Is Still Seen as the World's Currency." The Commission helps to shape the EU's overall strategy, proposes new EU laws and policies, monitors their implementation and manages the EU budget. Institutions are distinct from advisory bodies to the European Union, and agencies of the European Union. Earlier treaties are now incorporated into the current consolidated version, which comprises the Treaty on European Union and the Treaty on the Functioning of the European Union. World Economic Forum. Article 14 of the 2010 Lisbon Treaty describes the functions of the European Parliament: "The European Parliament shall, jointly with the Council, exercise legislative and budgetary functions. Admiral Markets. Accessed Aug. 4, 2020. What does the European Commission do? The Commission has the following functions: Legislation – The Commission initiates legislation. The TFEU includes enhancements to the social dimension of the European Union. As European prosperity grew, so did the ambitions of the EU. EUR-Lex. 2. A Brief History of the European Union 1950 2008 16. The EEC was formed out of a previous group called the European Coal and Steel Community - which had its own start in 1951. The European citizens' initiative empowers citizens to have a greater say on EU policies that affect their lives. In fact, according to the EU's website, more than 340 million EU citizens in 19 countries use the euro as their currency. HOW THE EUROPEAN UNION WORKS The last amending treaty — the Lisbon Treaty — was signed in Lisbon on 13 December 2007, and came into force on 1 December 2009. the Union's policies and activities, in particular with a view to promoting sustainable development. HOW THE EUROPEAN UNION WORKS The last amending treaty — the Lisbon Treaty — was signed in Lisbon on 13 December 2007, and came into force on 1 December 2009. It replaced the Italian lira, the French franc, and the German Deutschmark, among others., The value of the euro is free-floating instead of a fixed exchange rate. As a result, foreign exchange traders determine its value each day. Earlier treaties are now incorporated into the current consolidated version, which comprises the Treaty on European Union and the Treaty on the Functioning of the European Union. Despite not being officially formed until 1993, the European Union's foundations actually reach further back to 1957, when the European Economic Community was established. Its target inflation rate is less than 2%., The Schengen Area guarantees free movement to those legally residing within its boundaries. These measures required Greece to raise corporate and other taxes higher, increase worker contributions, and decrease private business to help pay off the debt. Read more about the role of the European Council You can read more about how EU laws are passed. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. The European Parliament has two theoretical powers but in reality it is unlikely to ever use both. Although the European Union would no longer depend on fossil fuel imports, it might develop new dependencies on imports of technologies vital to a zero-emissions economy. Two years later, the EU added Austria, Sweden, and Finland. In 2004, twelve more countries joined: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. 26.10.2012 Official Journal of the European Union C 326/53EN (1) These references are merely indicative. However, it wasn't until 1993 that the EEC morphed into the European Union following the new Maastricht Treaty (also known as the Treaty on European Union). They are, as listed in Article 13 of the Treaty on European Union: the European Parliament, the European Council, the Council of the European Union, the European Commission, the Court of Justice of the European Union, the European Central Bank and the Court of Auditors. The European Council consists of Heads of State or Government of member states, plus its President (currently Poland’s Donald Tusk) and the President of the Commission. The European Union is a unified trade and monetary body of 27 member countries. It eliminates all border controls between members. What the European Commission does; What the European Commission does. The predecessor of the EU was created in the aftermath of the Second World War. Accessed Aug. 4, 2020. Accessed Aug. 4, 2020. "Setting Up a European Business (SE)." Thomas Brock is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. As of 2018, the European Union has 28 members - all European countries. Decisions taken by the EU regarding economic and social policies are legally binding on all member nations, as long as the majority votes for them. The countries comprising the European Union are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. How a Country's Debt Crisis Is Different From Yours, What the Dollar Is Worth in 5 Other Currencies, Understand the Greek Debt Crisis in 5 Minutes, The Sovereign Debt Crises of U.S., Greece, and Iceland Explained, euro's value is compared to the U.S. dollar. The primary purpose of the European Union has been adopted from the collective goals and objectives of the European Economic Community. But despite the common pledge of EU members to eventually switch over to using euros, only 19 of the current 28 use the euro, as of 2018. The Council has the following functions: Legislative– The Council has the power to pass laws. The function of the European Union (EU) is to enable closer relations between the member states. As of July 2018, Slovenia has proceeded with the lawsuit, crediting Croatia's failure to implement the border arbitration ruling - reached in June of 2017. The Court of Justice of the European Union consists of a number of different courts, some specialised, with judges appointed by member states. The EU Council represents national governments. It created its first Parliament in 1979. This is a power that it shares with the European Parliament. 1986 Spain and Portugal I. 9.5. In the post-World War II world, the European Union has sought to bolster the individual and collective economic and social well being of the countries involved, as well as establish a cohesive global marketplace that promotes trade and other social values. The European Union is a community of democratic European states, committed to the promotion of peace and prosperity. "Where the U.S. crosses red lines, we as Europeans must counterbalance," Maas wrote in an opinion piece. The principles of liberty, democracy, respect for human rights and fundamental freedoms and the rule of law are inherent to the European integration process. © 2021 TheStreet, Inc. All rights reserved. In 2018, its gross domestic product was $22 trillion, while China's was $25.3 trillion. As in 1949 when it was founded with the creation of the Council of Europe, the European Union's mission for today is to continue prosperity, freedom, communication, and ease of travel and commerce for its citizens. Today, for example, solar panels are primarily imported into the EU, and some critical raw materials, such as cobalt for batteries or iridium for electrolyzers, have a limited supplier base. The euro, despite being so commonly held, has a fluctuating value - which exchange traders daily determine in comparison to the U.S. dollar as a standard. But what exactly is the European Union, and how was it formed? In the European Union’s single institutional framework, the Council exercises the powers conferred on it under Article 16 of the Treaty on European Union (TEU) and Articles 237 to 243 of the Treaty on the Functioning of the European Union (TFEU). The European Union (EU) is a unique economic and political union between 27 European countries. The European Parliament has become increasingly influential in past decades. Although Brexit may prove to be more harmful to Britain than the European Union, there have still been rippling impacts on the EU in the post-Brexit world. The Commission shall promote the general interest of the Union and take appropriate initiatives to that end. Although the European Union would no longer depend on fossil fuel imports, it might develop new dependencies on imports of technologies vital to a zero-emissions economy. The European Commission is the EU staff. Full market unity, however, did not come into force until 2002 with the introduction of the Euro. Among other things, the EEC was designed to help break down trade barriers between countries in Europe, protect from private trade agreements that could diminish competition, and establish common agricultural and trade agreements and standards. The Commission helps to shape the EU's overall strategy, proposes new EU laws and policies, monitors their implementation and manages the EU budget. The European Council is the EU institution that defines the general political direction and priorities of the European Union. The Euro as an International Currency: Implications for Exchange Rate Policy, Ins and Outs of Trading the EUR/USD Currency Pair, Why the US Dollar Is Still Seen as the World's Currency. 1986 Spain and Portugal I. And, amid rising concerns with Brexit, the EU has reportedly begun considering creating an independent system to conduct financial transactions - that would exclude the United States, according to Newsweek. The Parliament can reject the annual budget of the European Union (which it did 6 times in the 1980’s) but now with a centralised currency, this would bring to a halt all the work the European Union does and bring the whole concept of a Europe working together into disrepute. Contract staff positions are available for a wide range of jobs, requiring different levels of qualifications. It makes proposals for laws that are sent to the European Parliament and Council of the European Union for approval. It also plays a significant role in supporting international development and … To investigate the functions of the Commission we will use the Treaty again. They are, as listed in Article 13 of the Treaty on European Union: . It is independent of the national governments of the member countries. Citizens can also submit complaints and inquiries concerning the application of EU law.". However, apart from EU-U.S. tensions, the union is caught in the middle of several other controversies. Accessed Aug. 4, 2020. Accessed Aug. 4, 2020. In fact, earlier this year, Slovenia declared it would take fellow EU member Croatia to court over the border dispute, Reuters reported. clerical or secretarial tasks, office management and other equivalent tasks The treaty was comprised of three principle components: The European Communities, security and foreign policy, and cohesive domestic affairs and justice standards. The European Parliament and other institutions see to it that these objectives are achieved. Following a globally tumultuous 2008, Greece announced an astounding budget deficit of 12.9% - over four times the 3% the EU requires. According to the official site, citizens have a variety of ways to contribute, including "by giving their views on EU policies during their development or suggest improvements to existing laws and policies. In 1957, the Treaty of Rome established a common market. It enables a lot of the beaucracy that used to be involved with those issues to be by passed. As European prosperity grew, so did the ambitions of the EU. Although a polarizing issue on many sides, Brexit's implications have potentially disastrous effects on the British economy and position in the global arena. To help clean up the fiscal mess, the EU and the International Monetary Fund issued a bailout and loaned Greece an emergency fund to the tune of 240 billion euros, asking for austerity measures in exchange. They are divided into four function groups: I. manual and administrative support-service tasks; II. According to reports by Politico, certain countries in the EU could face huge economic losses, including Ireland and Germany, who both could stand to lose over 10% and 5% of GDP, respectively. this is in order to make the most of the collective abilities of the member states, for example free trade, freedom of movement, freedom of job choice. Additionally, the Treaty of Lisbon, enacted in 2009, gave the European Union more broad powers that included being authorized to sign international treaties, increase border patrol, and other security and enforcement provisions. How Are Members of the European Parliament Selected? Today, for example, solar panels are primarily imported into the EU, and some critical raw materials, such as cobalt for batteries or iridium for electrolyzers, have a limited supplier base. The EU now perform many functions of a state but it is not run as a democratic state .The restrictions of freedoms discernible in the charter of fundamental rights of the union and the extension of so-called ‘’ shared competences”, which can only take more and more power away from sovereign governments, reduce democratic validity and democratic control of the European Union. This chart shows which countries are members of the EU, the eurozone, and the Schengen Area: In 1950, the concept of a European trade area was first established. Every three years there is partial replacement of the judges and A-G's, although they are eligible for re-election. Negotiates and adopts EU laws, together with the European Parliament, based on proposals from the European Once established, the euro has replaced many of Europe's leading currencies, including French and Italian currencies like the franc and lira, to name a few. What the European Commission does; What the European Commission does. The European Union Agency for Fundamental Rights (FRA) was established in 2007, overtaking and extending the mandate of the European Union’s Monitoring Centre on Racism and Xenophobia (EUMC). "Ins and Outs of Trading the EUR/USD Currency Pair." Accessed Aug. 4, 2020. "It is, therefore, essential that we strengthen European autonomy by setting up payment channels independent of the USA, creating a European Monetary Fund and building an independent Swift system.".