European Union

Type of Government

The European Union (EU) is a hybrid governing entity based on treaties agreed to by its twenty-seven member countries, or states. Its organization is complex and unique, employing a combination of supranational elements (whereby one government body reigns over others) and intergovernmental elements (whereby various sovereign governments come together to cooperate on matters that may fall partially or completely outside of their respective jurisdictions). Its basic structure can be best understood within the framework of traditional executive, legislative, and judicial branches. An appointed European Commission, with representatives from each of the member states, including a president, forms the EU’s executive branch. It has a bicameral legislature, with its upper house, the Council of the European Union, being the dominant lawmaking body, composed of government officials from each member state, and a European Parliament, which is directly elected by the citizens of the member states. The judicial branch is headed by the European Court of Justice.

Background

The European Union is made up of twenty-seven independent nations, often referred to as “member states”—Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. It encompasses 1.6 million square miles, approximately half of billion people, and more than twenty-three languages. Nearly one-third of the world’s gross national product is produced by the union. The EU’s official currency, the euro, has been adopted as the sole legal tender in thirteen member states.

The idea of a unified Europe is a very old one and many battles have been fought over it. But the creation of the present-day European Union stemmed from a very different premise than those that had gone before: achieving that integration without force. The actualization of such a concept was almost without precedent.

World War II (1939–1945) left Western Europe physically and economically devastated. Its aftermath also included the advent of the Cold War—a period of heightened tensions between the United States and the Soviet Union—and the Soviet Union’s obvious designs on parts of Eastern Europe beyond Poland and Bulgaria. The Western powers thus saw a need to rebuild their economies while protecting themselves from both one another and from the Soviet Union. French statesman and economist Jean Monnet (1888–1979) and foreign minister Robert Schuman (1886–1963) believed that the most effective way to begin the necessary international cooperation was to establish economic ties. This philosophy was reflected in the Schuman Plan, a joint suggestion from the two Frenchmen to pool European coal and steel production under a common authority. In addition to the economic incentive of a more efficient market, the proposal ensured that control over the materials of war was shared by various national governments. Their plan is widely seen as the first step toward a unified Europe.

The European Coal and Steel Community (ECSC) was brought into being by the Treaty of Paris, signed in April 1951 by Belgium, the Federal Republic of Germany (West Germany), France, Italy, Luxembourg, and the Netherlands, a group that came to be known as “the Six.” The ECSC worked beautifully, increasing trade by almost 130 percent over five years, so the Six sought other areas that could be unified. Their next successful efforts were two treaties signed in Rome in 1957 and entered into force the following year—one established the European Economic Community (EEC) and the other the European Atomic Energy Community (EAEC, or EURATOM).

Treaties continued to be key to the integration process. Important agreements leading up to the creation of the EU include the Merger Treaty of 1967, which incorporated the ESCS, EEC, and EAEC into one unit known as the European Communities, and the Single European Act of 1987, which assisted in the formation of a single market. Then came the Treaty on European Union (also known as the Maastricht Treaty), which took effect in November 1993. The Maastricht Treaty formally established the European Union and expanded and enhanced the provisions of the founding three treaties. Among the essential points of this treaty were a timeline to attain Economic and Monetary Union (EMU) and create a single currency, specific eligibility requirements for potential member states, a Common Foreign and Security Policy (CFSP), a Justice and Home Affairs (JHA) policy, a Social Chapter on labor standards and other social issues, and the introduction of EU citizenship. The Maastricht Treaty served as the basis of the current EU.

Government Structure

The European Union (EU) is a hybrid governing entity based on treaties agreed to by its member countries. A comparison to the United States is somewhat apt, as the two bodies do have some characteristics in common. Member countries of the EU, for instance, have relinquished some of their inherent powers in the interest of unity and shared values, as the U.S. states did when forming the federal government. In those instances, such as trade, the EU acts directly on its members’ behalf, as the U.S. government does for its states. Like citizens of the United States, EU citizens have the right to free movement from one member state to the others, and can establish residence in other EU states. There are, however, many differences between the two as well. Key among these is that each EU member is a sovereign nation. This means that each retains its own authority in numerous areas, including defense. While there is a single unit of currency, the euro, most member states have not agreed to a joint monetary policy and still circulate their own money. Regardless of these limitations, the EU is the only governmental entity that can, in many cases, enact laws that are directly binding on citizens of different countries.

Thus, similarities to the United States aside, the EU’s combination of supranational and intergovernmental elements renders it one of a kind. It is not exactly a federation, nor a mega-state to replace existing nations, yet it is more than a simple cooperative organization among governments—the EU is forging a new governmental template.

The executive role is played by the European Commission (EC), which is made up of an appointed commissioner from each member state and a single president. The Commission is appointed every five years, within six months of the European Parliament (EP) elections. First, member governments agree on new Commission president. A majority of the EP must then approve their choice. Next, the president-elect, in consultation with member governments, selects the twenty-seven commissioners. Finally, the EP interviews each prospective member before issuing a verdict on the entire group. It is important to note that the EP retains supervisory power over the Commission after appointments have been approved—it can, for example, dismiss the entire Commission through a motion of censure, and the Commission must clarify and/or justify its policies to the EP upon request.

The Commission’s principal duties include acting as guardian and enforcer of the EU’s underlying treaties, initiating legislation, managing policies and the budget, and representing the EU internationally. The Commission can issue guidelines for the implementation of legislation and treaties, initiate infringement proceedings against member states who violate EU directives, impose fines on companies or individuals, and administer the Union’s budget appropriations. It also negotiates international agreements on the EU’s behalf and retains the sole right of legislative initiative. Note that the Commission acts independently of the underlying individual governments, representing the interests and perspective of the EU instead.

The legislative function is essentially served through the bicameral efforts of the Council of the European Union and the European Parliament (EP). The Council represents the interests of the EU’s member states, thus providing a check to the Commission’s larger perspective, and is the primary decision-making entity. One minister from each country attends meetings according to the agenda, and so the individual minister varies depending on the subject at hand—an agriculture minister would, for instance, be sent to discuss crop prices. Ministers in attendance must have the authority to commit their government’s votes, which are weighted by (but not directly proportional to) each member state’s population. The Council presidency rotates among member states every six months (January through June, and July through December). The Council is assisted by a permanent body of member states’ ambassadors called the Permanent Representatives Committee (COREPER). Council decisions are made in one of two ways: by the vote of a qualified majority representing a minimum of 73.9 percent of votes and at least 62 percent of the EU population, or, in areas such as taxation or asylum and immigration policy, by unanimous vote. Unanimity is also required when the Council wants to deviate from Commission proposals or reject Commission-accepted EP amendments.

The Council addresses both supranational and intergovernmental issues. Major supranational responsibilities include adopting European laws (often in conjunction with the EP), coordinating economic policies of member states, concluding international agreements, and approving the EU budget (jointly with the EP). Intergovernmental duties include developing the EU’s Common Foreign and Security Policy (CFSP) and coordinating national judicial and law enforcement cooperation in criminal matters.

The other half of the legislative branch is the European Parliament (EP). Established in 1979, the EP is directly elected by EU citizens. Each member state holds its own parliamentary elections for the EP—the only requirement is that elections be held on a population-based, proportional representation system. The EP’s 785 members serve five-year terms, and the size of each country’s delegation is based on overall population. The composition in 2007 was as follows: 99 from Germany; 78 each from France, Italy, and the United Kingdom; 54 each from Spain and Poland; 35 from Romania; 27 from the Netherlands; 24 each from Belgium, the Czech Republic, Greece, Hungary, and Portugal; 19 from Sweden; 18 from Austria and Bulgaria; 14 each from Denmark, the Slovak Republic, and Finland; 13 each from Ireland and Lithuania; 9 from Latvia; 7 from Slovenia; 6 each from Estonia, Cyprus, and Luxembourg; and 5 from Malta. The EP elects its own president, who serves a two-and-a-half year term.

Primary duties of the EP are the passing of European laws (often in conjunction with the Council), supervising other EU institutions (most notably, the Commission), and, jointly with the Council, overseeing the EU budget. The EP serves an important role as a check upon the other governmental bodies. It has the ability to approve or reject Commission members and the right to censure and dismiss the entire Commission; the Council must also obtain the EP’s consent as to some crucial decisions, such as those involving international agreements or procedures for parliamentary elections.

The EU’s governance also includes the European Council (not to be confused with the Council of the European Union), which was granted legal status in 1974. This entity is made up of the member countries’ heads of state or government, along with the president of the European Commission, and meets up to four times a year. Another way of maintaining proper balance between the supranational and intergovernmental, these senior diplomats set broad policy for future action and reconcile issues left unresolved by the Council. On a less formal level, these meetings provide a forum for brainstorming among member nations at the highest political level.

The judicial branch is headed up by the Court of Justice of the European Communities or, as it is commonly known, the European Court of Justice (ECJ). It is composed of twenty-seven justices, one per member state, assisted by eight advocates-general. Judicial appointments are for renewable six-year terms (staggered between thirteen and fourteen members, lest the entire Court be replaced at one time), and are mutually agreed to among member states. The Court selects its own president who serves a three-year, renewable term. Justices rarely sit en masse, given the size of the Court, but instead either convene as a Grand Chamber of thirteen or in panels of three to five.

The ECJ hears cases involving member states, institutions, businesses, and individuals, while ensuring EU legislation is construed and applied consistently in all member nations. The Court generally regards European legislation as prevailing over conflicting national laws. A Court of First Instance was established in 1989 to help ease the ECJ’s heavy caseload. Its particular focus is on cases involving individuals and those concerning competition law. The newest addition to the EU’s judiciary is the European Civil Service Tribunal. As the name implies, its role is to hear disputes between the EU and its civil service.

The other vital component of the EU judiciary is the European Court of Auditors (ECA). Its function is to monitor and oversee the use of all EU funds. It submits a yearly report to assist in the implementation of the EU’s annual budget and has the authority to audit any person or organization handling EU funds, among other duties. The ECA is made up of one member from each EU nation. Members are appointed by the Council for renewable six-year terms and elect a president from within their own ranks to a three-year term.

Although it is not part of the EU’s governmental structure, the European Central Bank (ECB) is another significant institution. Founded in 1998, its primary purpose is overseeing the EU’s monetary policy. Managing the euro is an important part of that role, and the ECB is charged with maintaining the currency’s price stability through such means as controlling the money supply via setting interest rates. The thirteen member states that have adopted the euro, along with their central banks and the ECB, make up what is known as the Eurosystem.

Political Parties and Factions

The political parties of the EU are coalitions of various political parties from the member nations that share common ideologies or goals. The most prominent parties are the European People’s Party–European Democrats (EPP–ED), a coalition of conservative and Christian-democratic parties throughout Europe; the Party of European Socialists (PES), which encompasses various national labor and social democratic parties; the Alliance of Liberals and Democrats for Europe (ALDE); the European Greens–European Free Alliance, a coalition of environmentalist “green” parties and parties that represent stateless regions such as the Basque country; and the Union for Europe of the Nations (UEN), a conservative group that espouses national sovereignty within the EU. In the EP, members sit together in these party groups rather than as national contingents.

Major Events

After the Maastricht Treaty formally established the EU in 1993, there were three additional treaties of notable impact. The Treaty of Amsterdam, which took effect in 1999, took a renewed look at EU institutions with an eye toward enhancing economic and security objectives. Preparation for the union’s growth, or “enlargement,” was also part of the agenda. Among the treaty’s more salient provisions were measures extending the scope of qualified majority voting, increasing the EP’s powers and responsibilities (this, for example, is where parliament’s decision-making role was placed on a more equal footing with the Council), and strengthening the EU’s ability to engage in joint foreign policy endeavors. The Treaty of Nice (2003) went even further by setting the conditions for enlargement through more policy revisions. Those revisions included re-weighting votes within the Council, redistributing member country representation with the EP, and re-vamping the European Commission. It also extended the use of “enhanced cooperation,” which permits a minimum of eight member states to proceed with policy initiatives on their own, providing those initiatives do not infringe on the rights of other members. All this build-up led to the largest single expansion of the EU when ten new members—Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic, and Slovenia—were admitted on May 1, 2004, bringing its membership to twenty-five. Additional expansion in 2007 brought two more Eastern European nations, Romania and Bulgaria, into the fold.

The EU’s next major treaty enterprise was not initially as successful as its predecessors. In February 2002, the Convention of the Future of Europe (also known as the “European Convention”), composed of 105 members representing the governments of the EU’s member nations and candidate nations, the parliaments of those states, the EP, and the Commission, began work on a draft treaty to create a European Constitution. The process lasted sixteen months and was open to the public, including the publication of official documents on the Internet. A draft constitution was completed in the early summer of 2003 and approved via the European Constitutional Treaty on October 29, 2004.

The Constitution for Europe contains many major reforms and innovations. These include creating a five-year presidency for the Council (as opposed to the six-month rotation policy), establishing a foreign minister and foreign service, simplifying voting procedures, providing EU citizens with more opportunity for direct participation in government, and improving overall transparency. However, the document requires ratification by popular referendum or parliamentary vote by every EU member. In this, it has so far failed. French and Dutch voters refused the constitution in 2005. The matter has been put on hold while a report is compiled for the European Council, which is then expected to offer guidance on how to proceed sometime in 2008.

Twenty-First Century

Despite the setback of not gaining ratification of its proposed constitution, the EU appears poised to continue growing and evolving. 2007 saw the admission of Bulgaria and Romania to its ranks, bringing its membership up to twenty-seven. Entrance negotiations with Croatia and Turkey were begun in 2005, and an application from the former Yugoslav Republic of Macedonia were being entertained. Some member states worry that expansion may hamper decision-making as members with less “European” perspectives are brought into the union, while others are concerned about potential economic burdens caused by less-affluent member states or a possible influx of immigrants. Proponents of expansion, on the other hand, welcome the new blood and look forward to continuing to forge economic and political bonds with all the people of Europe. Such integration was, after all, the point of the EU’s creation.

European Union. “Europa–A Gateway to the European Union.” http://europa.eu/index_en.htm.

Pinder, John. The Building of the European Union. 3rd ed. Oxford: Oxford University Press, 1998.

Shore, Cris. Building Europe: The Cultural Politics of European Integration. London: Routledge, 2000.