The European Union -Its Development and
Institutions
Linda Stevenson
Freelance Research and Information Officer 1
INTRODUCTION
In the aftermath of World War II, at a time when Western imperial powers were declining,
and new international crises were emerging, there developed out of the subsequent
economic, political and social turmoil, the seeds of an idea for a more integrated Europe
that would have a profound impact not only in Western Europe, but also on the wider
international community in the latter half of the 20th century
For more than 100 years previously, the major European powers had vied for economic
supremacy both within the continent of Europe and in the colonies. The result was
a period of economic, political and social instability that had a knock-on effect
across the globe. Even the cost of the Great War between 1914-1918, which was
considered to have been the war to end all wars, proved an insufficient deterrent
against further conflict
However, although the causes of World War II may have been different from the
contributing factors that led to the start of World War I, the outcome was familiar:
France and Germany were still enemies; national economies were devastated; political
instability continued and, in fact, deteriorated further with the emergence of the Cold
War; and the devastating social impact was widespread
It became apparent that, in order to encourage long-term international peace and security,
steps had to be taken to tie the major European players into a relationship that would
bind them together more closely than had been the case in the past This was to be
achieved through economic integration
By encouraging greater economic interdependence, it was believed that the countries of
Western Europe would be prepared to focus more on co-operation than on competition
The result has been the emergence of the EEC, which has evolved over a forty year
period into the EU: a unique international organisation without parallel anywhere
else in the world, in which the constituent members are prepared to continue to
co-operate with one another to a level unprecedented in modem history, in spite of
the organisation's many failings
Of course, this has been an incremental process For every step forward for the Union
there have often been two steps backwards, and much time has been spent marching
Linda Stevenson is a self-employed Research and Information Officer, with an institutional base in the
Department of Politics and International Relations, University of Aberdeen, Scotland. She is currently
studying part time for a MPhil in Information Analysis, examining information flows between the
institutions and bodies of the EU and Scottish local government linda has also taught European
Studies at Aberdeen College, as well as at the University of Aberdeen. Recent publications include
revisions made to the "A-Z of the European Union'', within the European Union Encyclopaedia and
Directory, 3rd ed London: Europa, 1999
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on the spot as the Member States have vacillated over what to do next There have
been, and continue to be, many conflicting views over which path to take towards
intepation; and, indeed, over the levels at which integration should take place. There are
Member States of the EU who would still prefer nothing more than a very loose form
of integration based on intergovernmental co-operation; whilst at the other end of the
continuum there are those who seek nothing Jess than complete political and economic
integration into a federal Europe.
Given the differences in opinion that exist between the Member States, it is a wonder
that the EU has progressed at all And what is even more remarkable is that there aie still
so many countries queuing up to join, despite the criticisms levelled against the EU, and
predictions of its eventual downfall
It has taken nearly half a century for the EU to reach the position it holds now In
historical terms that is no time at alL Anyone interested in political philosophy will know
that the vision of an integrated Europe is not a new one. But where other experiments
have failed (i . e The Holy Roman Empire, Napolean Bonaparte's attempts to conquer
Europe, the USSR's attempts to expand communism across the European continent etc.),
the Member States of the EU, and those waiting to accede, choose to work together
The EU differs in that it negotiates, attempts to reach consensus, and either waits for,
or cajoles, the slower members into catching up Even members who are not really
enamoured with every aspect of the organisation choose to join, or opt to remain in,
because they recognise that it is better to be a part of the EU than to be an isolated
outsider. Perhaps not an ideal reason- but at least it is realistic.
Eurosceptics are keen to point out what has not been achieved, and dwell on the fragility
of the relationship between the Member States One of the favourite criticisms is that
the EU is not a government in the Western liberal democratic sense, and that there is a
substantial democratic deficit that denies the EU any real legitimacy. Power, they claim,
stiJl rests with the national legislatures of the Member States As a result Member States
still put the national interest before the interests of the EU
Since the mid-1980s attempts have been made to address the democratic deficit by
increasing the role of the European Parliament (the only directly elected body in
the EU) in the decision-making processes. But there is still a long way to go before
the EU can be considered to be as democratic as its Member States Voter turnout
at European elections is notoriously low; not just in the more Eurosceptic states
MEPs, it has been said, cannot claim to have a broad mandate for the citizens of the
European Union as a result
According to one of the Parliament's Vice Presidents, David Martin, MEP, citizens
of the EU should be less concerned today with the democratic deficit than with the
information deficit in the EU He believes that more attention should be paid to the flow
of information between the institutions of the EU, and between the EU, its Member
States, and its citizens
Attempts have also been made, quite successfully, to make the processes of the EU
more open, accessible and transparent over the past few years in an attempt to increase
accountability. The amount of information freely available via the Internet, and the
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amount and quality of information that is easily accessible via the European Commission
websites, has gone a long way to improving communication for those who seek it
Documentation is more readily available, although you still need to know how and
where to look for it
Before we examine the institutions of the EU it might be useful to map the historical
development of the Union in the post war period
Historical Development
1951
The Treaty of Paris was signed by France, Germany, Italy and the three
Benelux states, establishing the European Coal and Steel Community
(ECSC) This was the first European organisation to lay down the
foundations of a Common Market in the coal and steel industries of its
member states It was also the first European organisation to introduce a
supranational element into its institutions
1957
The Treaties of Rome establishing the EEC and Euratom were signed by
the member states of the ECSC
1963
Britain's first application to join the EEC was turned down French
President Charles De Gaulle was particularly opposed to British accession
to the EEC Initially Britain had hoped to pursue less formal, more
intergovernmental co-operation with its former European allies through
the European Free Trade Area (EFTA), as the British government in the
1950s still considered that it had a pivotal role to play between Europe
and the USA However, the initial success of the EEC forced the British
government to reassess its position
1968
Britain's second application tojoin the EEC was again turned down
1973
Britain finally joined the EEC accompanied by Ireland and Denmark
Mid-late 70s Period of Eurosclerosis when EEC appeared to be in danger of collapse
I his was brought about by a period of economic decline in Europe that
led to high unemployment National governments became inward, rather
1981
1983
1987
1986
1992
1993
1996
1998
than outward, looking
Greece became the lOth member of the EEC
Draft Treaty to establish the EU drawn up
Single European Act introduced. I his provided the impetus required to
push the EEC out of the doldrums I his was the first major revision of
the I reaty of Rome, which underpinned the programme leading up to the
intmduction of the Single European Market
Spain and Portugal joined the EC
The Single European Market came into effect on I January
Treaty on European Union (Maastricht Treaty) signed, eventually, by all
Member States, with British opting out of Social Chapter on ideological
grounds . However, the Labour government elected to power in 1997
agreed to sign the Chapter shortly after taking office.
Intergovernmental conference to debate progress of the measures
introduced by the Treaty on European Union, and to agree new targets
I reaty of Amsterdam signed, amending the I reaty on European Union
following the 1996 IGC
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1999
European Monetary Union established - plans to establish the Euro in
all the Member States by 2002 - not adhered to by all Member States,
notably Britain, Sweden and Denmark
THE 1NS111U110NS OF THE
EU
The Council of Ministers
Before we take a look at this major institution of the EU it is essential that we clarify
one or two points
There is often confusion surrounding tbe role and functions of the Council of the EU, the
Council of Europe and the European Council The easiest way to explain the differences
is to establish first of all that the Council of Europe is not an institution of the EU It is a
pan-European international organisation that includes the member states of the EU plus
many European states that are not members of the EU
The Council of the European Union (more commonly referred to as the Council, or the
Council of Ministers), and the European Council on the other hand are institutions of the
European Union, and will be dealt with below
This is the major decision making body of the EU and could be described as its
legislative and political arm, although over the years it has been forced to share
some legislative power with the Parliament and with the Commission as a result of
amendments to the I reaty of Rome by the Single Europe Act, the Maastricht Treaty
and the Treaty of Amsterdam
Based in Brussels, this institution is primarily intergovernmental. Although it displays
some supranational characteristics, it is the Ministers representing each of the national
Parliaments of tbe Member States that sit on the Council. Meetings are organised by
portfolio e . g . fisheries, finance, employment etc, with the relevant government minister
from the national Parliaments attending the relevant Council meetings As a result
policy tends to be determined along the lines of national interests, which has given
rise to criticism over the years
The powers and functions of the Council and its relationship with the other institutions
are formally set out in the Treaties of the EU
Whereas all decisions in the Council used to be taken by unanimous vote, the ability
of one state to exercise its power of veto to block legislative progress has been seen
as detrimental to closer integration of the Member States . As a result more and more
decisions are being taken using Qualified Majority Voting (QMV), or by Simple
Majority, depending on tbe issue
States seeking to pursue their national interests, and which prefer a slower pace towards
integration, are opposed to the use of QMV, whilst those in favour see it as essential in
preventing one state from holding the rest back But as the Union enlarges it will become
more and more difficult for tbe Member States to reach a unanimous decision so the use
of majority voting will have to become more widespread
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Critics of the working practices of the Council of Ministers claim that it has been too
secretive in the past, and they suggest that it lacks accountability, contributing further to
the democratic deficit within the Union. It is also said that it is too interested in pursuing
national rather than community interests.
In answer to these criticisms, attempts have been made in recent years to encourage greater
openness and transparency by making the voting records of the Council available to the
public, and by establishing a Code of Conduct on public access to documents
The Council of Ministers is assisted by the Committee of Permanent Representatives
in Brussels (COREPER) This body consists of representatives of each of the national
governments of the Member States who are based permanently in Brussels. As national
ministers also have responsibilities at home, the majority of the policy negotiations
take place within COREPER and its working groups These groups tend to work out the
details and highlight any areas where agreement is proving difficult for COREPER to
resolve As a result, only politically contentious issues are discussed by the Council
And even then many of the most politically sensitive problems are left for the European
Council to solve
The Presidency of the Council changes every six months, on a rota basis. The Member
State whose turn it is in the Chair can influence the agenda for the term, the end
of which coincides with the summit of the Heads of State and Government of the
European Council.
The European Council
Although no official provision for such an institution was made in the Treaty of Rome,
since the mid 1970s the Heads of State and Government, the President of the European
Commission, plus one other European Commissioner (supported by national Foreign
Ministers), have held a summit at least twice a year. As a result, it has gradually
received formal recognition, firstly through new measures within the Single European
Act, and more recently as a result of measures introduced in the Maastricht Treaty
It is not, however, an Institution of the EU, and as such is not subject to the same
checks and balances
Its role is to ensure the development of the EU, especially in relation to economic and
monetary policy, and it has become an important debating forum as it provides the broad
political framework for further integration. Politically contentious issues that have not
been resolved by the Council of Ministers are discussed at this level. However, legislative
power still rests with the Council of Ministers
The European Commission
This institution, based in Brussels, consists of 20 Commissioners: two from each of the
five larger Member States, plus one each from the remaining I 0 Member States
Although the Commissioners are appointed by the national governments of the Member
States, they must each be prepared to put the interests of the EU before national
interests. Consequently, the European Commission is considered to be the most
supranational institution of the EU, and as such, has often been at loggerheads with
the Council of Ministers
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The Commission is the executive and administrative arm of the EC, as it not only
proposes legislation to the Council of Ministers, but also ensures that legislation is
implemented by the Member States It also acts as the guardian of the Treaties . If
Member States do not comply with EU legislation they must respond to Commission
enquiries. Failure to respond, or to respond to the Commission's satisfaction can result
in the Member State being taken to the Court of Justice
The European Commission also has responsibility for the financial management of the EC
and submits a draft budget for European Parliament and Council approval. Once adopted
the Commission administers the allocation of money from the budget
And finally the European Commission acts as the external representative of the EU
on the international stage
Each Commissioner has his/her own portfolio distributed to him/her by the President of
the European Commission which corresponds, more or less, with the Directorates-General
(DGs) of the EU: the 'ministries' of the EU, of which there are 24 at present
The power and influence of the Commission fluctuates from time to time, and appears
to be linked directly to the personality of the President and the attitude of the leaders of
the Member States at any given time, although its powers are said to be decreasing in
proportion to the increase in power of the other institutions
Over the years it has been criticised for being overly bureaucratic, and yet it does not
employ as many civil servants as some of the Member States And it has been criticised
for being too dominant and centralising, yet it does not make the decisions. It is also
criticised for being undemocratic, and there have beef! calls for the President of the
Commission at least, to be directly elected
To many people it appears remote and inaccessible, but that is not always the case The
Commission relies heavily on organised interests to provide background information
in policy formulation.
In its favour the Commission is credited with encouraging the Member States to move
towards greater harmonization of legislation and procedures, and for providing the drive
and determination to push the Member States towards closer integration
However, this year, for the first time in its history, the European Commission
resigned en masse following allegations of widespread fraud, nepotism and financial
mismanagement Although the European Parliament, which has the power of censure
over the Commission, opted not to exercise its right in this instance; and although only
a few of the Commissioners were specifically highlighted, the European Commission is
collectively responsible for the actions of its Commissioners The mass resignation was
believed necessary in order to regain confidence in the institution
The European Parliament
This is the only institution of the EU whose members are directly elected by, and
accountable to, the citizens of the EU This has only been the case since 1979 Based in
Strasbourg, it is deemed to be a supranational institution
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There are 626 MEPs in the European Parliament, who are elected every 5 years . From
their number a new President is elected every two and a half years. He sits in the
Bureau of the Parliament along with 14 vice-presidents, sometimes referred to as the
Conference of Presidents.
The political parties from each Member State form groupings within the chamber of
the European Parliament that reflect ideological rather than national interests, and the
style of politics is more consensual than is the case in some of the national Parliaments
of the Member States
The powers of the Parliament have increased over the years in an attempt to address
criticisms of democratic deficit, although it still does not have the status of a national
Parliament Parliament now has a greater role to play in the decision-making processes
Whereas initially the Parliament's role was simply to advise the Council, and to monitor
the work of the Commission, it now participates as co-decision maker in some policy
areas, and co-operates in other areas of the process The assent of Parliament must
also be sought in certain policy areas; and in recent years the budget has been set
by Parliament There are calls for further reform of the role of Parliament to further
increase its legislative powers
The Parliament still supervises and monitors the functions of the Commission, and
approves appointments to the Commission, with the power to dismiss it if there is a
two-thirds majority in Parliament in favour of censure
Apart from generating policy initiatives the Parliament also votes on the Commission's
programme, and questions the actions of the Council of Ministers, in an attempt to make
these institutions more accountable.
Most of the work of Parliament is carried out by committees, with rapporteurs from
each committee reporting back to Parliament The opinions of the rapporteurs are
usually accepted, unless the issue is particularly politically sensitive, in which case it
is debated widely at Plenary session.
Apart from being criticised for being an expensive institution to run (all plenary sessions,
and Parliamentary documents must be translated into all the languages of the Member
States; its secretariat is based in Luxembourg; and occasionally the Parliament must
meet in Brussels when closer liaison with the Council or Commission is required), the
European Parliament is also criticised for its weak links with the citizens of the EU
Voter turnout is generally very poor for European elections and therefore the mandate
of MEPs has a very weak base
The European Court of./ustice
This is the supreme legal body of the EU, with its base in Luxembourg, away from
the European Commission and the Council of Ministers in Brussels; and from the
European Parliament in Strasbourg
Its role and function is to interpret EU law, and to arbitrate in disputes between Member
States, EU institutions, individuals and corporations Although the Treaty of Rome and
subsequent amendments to it, are considered to be constitutional instruments there is
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no written constitution of the EU As a result the ECJ is often called on to interpret the
Treaties, and to establish general principles of law
It has been a key player in promoting integration and its most fundamental contribution
was made in the early 1960s when it established the primacy of EU law over national
law
The Court is made up of four main elements: the judges (15 in total, each appointed for
a period of 6 years); the President of the Court (elected by the judges to serve a 3 year
term); nine advocates general; and the Court of First Instance This final element was
introduced by the Single European Act to relieve the burden of the ECJ's ever-growing
war kload, and focuses on the less complicated cases involving competition; actions
brought by the Commission; and disputes between the institutions of the EU and their
staff. Appeals against judgments can be made to the ECl
The European Court of Auditors
The Treaty on European Union formally elevated the status of the European Court of
Auditors to that of an institution in 1993. Its role is to keep a check on the revenue
and expenditure of the EU, scrutinising the budgets of the institutions and subsidiary
bodies. It provides an annual report to the European Parliament before it is passed
on to the Commission.
The Court of Auditors, which is based in Luxembourg, is composed of 15 members,
one from each Member State, who each serve for a period of six years Decisions are
taken by unanimous voting.
The European Investment Bank
As the bank of the EU, the EIB's Board of Governors consists of the 15 national
Finance Ministers of the Member States. It is also run by a Board of Directors, a
Management Committee, and a Committee of Auditors This institution is also based
in Luxembourg
The EIB operates in the same way as any ordinary bank, except that it must also
operate in accordance with the principles of the Treaties . It is a non-profit making
organisation whose interest rates are set at a level that enables it to cover the cost of
borrowing, plus a small margin
In terms of contribution to economic integration, the EIB is one of the major binding
forces of the EU
/he Committee of the Regiom
This is an advisory body to the Commission and the Council, established in 1994 by
the Treaty on European Union It consists of 222 representatives from regional and
local authorities across the Union, whose role is to consider whether EU legislation is
compatible with administrative practices at local or regional level within the Member
States. The establishment of the COR is based on the principle of subsidiarity: of bringing
decision making closer to the people However, its decisions are not binding It merely
provides the opportunity for consultation.
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The Economic and Social Committee
This institution allows economic and social groupings throughout the EU to voice their
opinion on relevant policy issues Its role is, therefore, purely advisory
The composition of ECOSOC is similar to the Committee of the Region, as there
me also 222 representatives on its Committee Decisions are reached on a simple
majority basis
The policy areas in which the ECOSOC must be consulted include: common agricultural
policy; transport policy; industry policy; environment policy; social policy; structural
and regional policies; research; and single mmket regulations. Since the 1 reaty on
European Union this Committee can also issue opinions on its own initiative in
certain cases.
CoNCLUSION
An mticle of this nature can do no more than provide a basic description of the institutions
of the EU Deeper critical analysis is required to understand how things really operate
1 o truly understand the workings of the EU you need to look at the way in which
the organisation and its institutions have evolved over the years, and you should
consider the many factors, both internal and external to the EU, that have influenced
the changes that have taken place. You need to be awme of the hidden agendas and
the differences between formal and informal roles and functions. You also need to
know a little about the personalities who have been involved in shaping the EU over
the yems But, hopefully, this introductory mticle will act as a good stmting point for
further study of the European Union
Note: At the time of writing, the European Parliament was in the process of ratifying
a new Commission The structure of the new Commission will be different from
the previous regime
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