c





c
  
The European Council - an official institution of the EU ± head of state/government
The European Council defines the general political direction and priorities of the European
Union. With the entry into force of the Treaty of Lisbon on 1 December 2009, it became an
institution. Its President is Herman Van Rompuy.

The European Council provides the Union with the necessary impetus for its development and
defines the general political directions and priorities thereof. It does not exercise legislative
functions.
The European Council consists of the Heads of State or Government of the Member
States, together with its President and the President of the Commission. The High Representative
of the Union for Foreign Affairs and Security Policy takes part in its work. When the agenda so
requires, 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.
Meeting: The European Council meets twice every six months, convened by its President.
When the situation so requires, the President will convene a special meeting of the European
Council.
Decision system: Except where the Treaties provide otherwise, decisions of the European
Council are taken by consensus. In some cases, it adopts decisions by unanimity or by qualified
majority, depending on what the Treaty provides for.
President: The European Council elects its President by qualified majority. The President's term
of office is two and a half years, renewable once.

c

 

The European Parliament is the only supranational institution whose members are democratically
elected by direct universal suffrage. There are 736 members up to now. It represents the people
of the Member States. The European Parliament, which is elected every five years, is involved in
drafting numerous laws (directives, regulations etc.) that affect the daily life of every citizen.

Each revision of the Treaties has seen an increase in the power of the European Parliament in
relation to the other institutions. Today the European Parliament is firmly established as a co-
legislator, has budgetary powers and exercises democratic controls over all the European
institutions.

The EP has five key formal powers.

1.? First, it has the right to amend legislation. The EP and Council are now often described as
co-legislators and are regarded as equals in numerous areas of policy making.
2.? Second, the Parliament provides one arm of the Union¶s bicameral (i.e. two-chamber)
budgetary authority, the other arm being the Council. As such, the EP has the right to
decide with the Council how the Union¶s budget should be distributed and spent.
 3.? The EP also has the right to approve the way in which the Commission has discharged
(i.e. spent) the budget, which falls under its third area of powers: scrutiny and control of
the executive. In addition to its right of discharge, the EP has the power to ask questions
of the Commission and Council, as well as to convene Committees of Inquiry to
investigate maladministration in the implementation of Community law (Shackleton
1998).
4.? Fourth, the Parliament has powers of appointment in relation to a number of institutions
including the Commission.
5.? Finally, the EP is the only EU institution that has the right to dismiss the Commission, a
power formally known as the right of censure.



 c
 

  ?
?
??
 

  
 The European Parliament shares  
equally with the Council
of the European Union. This means it is empowered to adopt European laws (directives,
regulations etc,).It can accept, amend or reject the content of European legislation.

 
 
 The European Parliament and the Council of the European Union together
constitute the Union¶s  
  
, which decides each year on its expenditure and
revenue. The procedure of examining, then adopting, the budget takes place between June and
late December. In the case of µcompulsory expenditure¶ (e.g. agricultural expenditure and
expenditure linked to international agreements) it is the Council that has the last word. In the
case of µnon-compulsory expenditure¶ (other expenditure) Parliament decides in close
collaboration with the Council. The European Parliament and the Council must adhere to the
annual spending limits laid down in the multiannual financial perspective.
Ä 
 
 
 The European Parliament has 
  
 
 
 over the
activities of the European Union. Ways of exercising control are: Citizens¶ right of petition with
appointing ombudsman, inquiry by setting up a commission to inquire violation of laws,
Parliament¶s right of recourse before the Court of Justice of the European Communities,
financial control ± power of control in economic and monetary domain.
The legislative role has developed from mere consultation at first, through the co-operation
procedure initiated by the Single Act, to the co-decision introduced by the Maastricht Treaty and
extended at Amsterdam to the point where it now applies to over half the legislation. Already in
1989 the Parliament could use its influence under the co-operation procedure to secure results
such as stricter standards for exhaust emissions from small cars. With co-decision it has been
able, among other things, to limit the Council¶s tendency to extend control of its committees of
national officials over the Commission¶s execution of Community policies. It has used its power
of assent over association agreements as a sanction against human rights abuse in Turkey, and to
ensure better conditions for Palestinians exporting to the Community from the occupied
territories. European Union ± A brief introduction

Voting:
Majority of the vote casts
In some cases, majority of members





   c
 


      !"  c
 

The ministers of the Member States meet within the Council of the European Union. Depending
on the issue on the agenda, each country will be represented by the minister responsible for that
subject (foreign affairs, finance, social affairs, transport, agriculture, etc.).
The presidency of the Council is held for six months by each Member State on a rotational basis.


   
  
  !"  !
  

!? The Council of the European Union passes laws, usually legislating jointly with the
European Parliament.
!? The Council co-ordinates the broad economic policies of the Member States.
!? The Council defines and implements the EU¶s common foreign and security policy, based
on guidelines set by the European Council.
!? The Council concludes, on behalf of the Community and the Union, international
agreements between the EU and one or more states or international organisations.
!? The Council co-ordinates the actions of Member States and adopts measures in the area of
police and judicial co-operation in criminal matters.
!? The Council and the European Parliament constitute the budgetary authority that adopts the
Community¶s budget.

Council decisions are taken by unanimous, simple or qualified majority voting (QMV), with
QMV being the most common. When QMV is used, each member nation is endowed with a number of
votes. The votes are weighted so that at least some of the smaller member nations must assent. For
the EU of twelve, the total number of votes was seventy-six (France, Germany, Italy and the UK
ten each; Spain eight; Belgium, Greece, the Netherlands and Portugal five each; Denmark and
Ireland three each; and two for Luxembourg), with fifty-four votes needed for a decision. Thus the large
countries could not impose their wishes on the rest; indeed, the weights favour the smaller countries. For
the EU of fifteen, it was agreed that sixty-two votes, out of a total of eighty-seven (France,
Germany, Italy and the UK ten each; Spain eight; Belgium, Greece, the Netherlands and Portugal
five each; Austria and Sweden four each; Denmark, Finland and Ireland three each; and two for
Luxembourg), would be needed for a decision, but if twenty-six votes are recorded against a
decision, µreasonable time¶ should be allowed for further discussion. The UK suggested that it
should be indefinite, but the others believe that it should be no more than three months.
This general picture remains basically true after the Nice Treaty and the accession of the twelve
new members in 2004 and 2007, in spite of increased votes for the larger member nations
(twenty-nine for each of France, Germany, Italy and the UK; twenty-seven for Poland and Spain;
fourteen for Romania; thirteen for the Netherlands; twelve each for Belgium, the Czech
Republic, Greece, Hungary and Portugal; ten each for Austria, Bulgaria and Sweden; seven each
for Denmark, Finland, Ireland, Lithuania and Slovakia; four each for Cyprus, Estonia, Latvia,
Luxembourg and Slovenia; and three for Malta). v  
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  ! The provison is added that a member of Council can request
verification on whether the member nations constituting the 255 votes represented at least 62 per
cent of the total EU population; if not, the decision cannot be adopted. Thus a decision requires a
triple majority.
As a final word on QMV, one should add that its proponents often claim that it is a device meant
to ensure that the large countries cannot impose their wishes on the smaller member nations
since the largest six countries need another sixty two to secure the needed 232 votes. However, it
can equally be claimed that it is a system which
prevents majority opinion from being stymied by a few smaller nations, which is what could
happen in the case of a decision requiring a simple majority of the EU nations, i.e. thirteen
out of twenty-five: hence the intricate play with figures.

Unanimous: consensus
Qualified Majority Voting:
a)For a Proposal from Commission or High Representative of the Union for Foreign
Affairs and Security Policy: 55% of Weighted voting with 65 percent representations of
Total population and approval of majority of member states;
b) for a proposal not from Commission or High Representative of the Union for Foreign
Affairs and Security Policy: 255 out of 345 (72% ) of weighted voting with 65 percent
representation of Total EU population and approval of majority of member states. Article
238
Simple Majority 14 out of 27 members.



    
The acts of the Council can take the form of regulations, directives, decisions, common actions
or common positions, recommendations or opinions.
The Council can also adopt conclusions, declarations or resolutions.
When the Council acts as a legislator, in principle it is the European Commission that makes
proposals. These are examined within the Council, which can make modifications before
adopting them.
The European Parliament is an active participant in this legislative process. On a broad range of
issues, Community legislation is adopted jointly by the Parliament and the Council using
a procedure known as «co-decision».


 
  *
Ä   

 


 
     
+#  

   

#

A qualified majority will be reached if the following two conditions are met:
!? if a majority of Member States approve (in some cases a two-thirds majority);
!? a minimum of 255 votes is cast in favour of the proposal, out of a total of 345 votes.
In addition, a Member State may ask for confirmation that the votes in favour represent at
least 62% of the total population of the Union. If this is found not to be the case, the
decision will not be adopted.

, 
    
 *
Ä

Germany, France, Italy, United Kingdom 29

Spain, Poland 27
Romania 14
Netherlands 13
Belgium, Czech Republic, Greece, Hungary, Portugal 12
Austria, Bulgaria, Sweden 10
Denmark, Ireland, Lithuania, Slovakia, Finland 7
Cyprus, Estonia, Latvia, Luxembourg, Slovenia 4
Malta 3

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Voting in the Council

There are three ways in which the Council of European Unioncan vote to take a decision: by
unanimous vote, by simple majority or by qualified majority. Originally, decisions of the Council
needed to be unanimous, in effect giving a dissenting state the veto, a fact exploited by de Gaulle
in the 1960s. the Luxembourg Compromise of 1966 reduced the need for unanimity, extending
the number of issues that could be settled by qualified majority. Since then there has been a stady
extension of qualified majority voting (QMV), most significantly as a result of the Single
European Act.
In pillar one the the TEU, unanimity is still required for;
!? all new policies
!? amendments to the policy issues of taxation and industry;
!? matters relating to regional and social funds;
 !? where the council wishes to agree or amend a policy against the wishes of the
Commission.
For the other two pillars created by the Maastricht Treay ± foreign and security policy (pillar
two) and justice and home affairs (pillar three) ± the Council was give the sole right to act as
decision-maker and unanimity was the rule.

Simple majority voting, with each state allowed one vote, is not permitted on policy or
legislative proposals. Its use is mainly confined to procedural matters.

QMV except stated above matters. (110 print)

'
c
  
The c
   is the executive body of the European Union. The body is
responsible for proposing legislation, implementing decisions, upholding the Union's treaties and
the general day-to-day running of the Union. The Commission operates as a cabinet government,
with 27 Commissioners. There is one Commissioner per member state, though Commissioners
are bound to represent the interests of the EU as a whole rather than their home state. One of the
27 is the Commission President appointed by the European Council. The Council then appoints
the other 26 Commissioners in agreement with the nominated President, and then the 27
Commissioners as a single body are subject to a vote of approval by the European Parliament.

Legislative Procedure in EU ± the EU page 76-, 97- 104

Legislative Process within the Union
1.? The commission proposes new legislation;
2.? The Council consults on the proposal with the Parliament which scrutinizes (and may
suggest amendments) and with the Economic and Social Committee which advises;
3.? The Council decides whether to go ahead;
4.? The Commission implements the proposal;
5.? The Court of Justice arbitrates on any infringement of the law and resolves any disputes.

There are four main procedures, other than that for handling budgetary matters.
1. Consultation procedure
The consultation procedure involves Parliament giving an opinion on Commission proposals.
Use of this method of policy-making has gradually been reduced with the introduction of the
cooperation and co-decision procedures, but it still covers important fields such as the CAP,
taxation and certain aspects of economic and monetary union.

2. the Cooperation procedure

the passage of the Single European Act extended the role of the Parliament although the Council
still has the final stay. In the TEU, cooperation was taken further, and now only covers some
limited aspects of EMU. Again, the Commission initiates a proposal, as described in the section
above. However, under this procedure, rather than being allowed merely consultation (the first
reading), it acquired more of a legislative role; it was given a second opportunity to examine any
proposal. The agreed position of the Council was to be submitted to it for scrutiny during a
second µreading¶. For up to three months ± or four if the period is extended by the Council ±
Parliament can discuss the proposal. Parliament has a number of options:
Accept the proposal; Amend it or reject it.

3. Assent Procedure
The SEA also introduced another device: the assent procedure. On any proposed enlargement of
the EC or on any association agreements, the assent of Parliament is needed. Parliament may
give or withhold its agreement on the proposal laid before it, but it has no power to amend it.

4. Co-decision procedure:
Under the co-decision procedure, Parliament and the Council adopt legislative initiatives o nthe
basis of joint agreement. Parliament has an absolute right of veto if it rejects the approved
position of the Council, though in a conciliation stage a committee made up of representatives
from the Parliament and the Commission can look for a compromise satisfactory to both
institutions.
'' 
The 133 Committee is the real power behind and decision-making centre for the European
Union¶s trade policy. c ? ?

?
? 
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?It takes its
name from Article 133 of the Treaty of Amsterdam. That article provides for the establishment
of a special committee appointed by the Council to assist the European Commission. ?
?

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?  ? ? ? ? ? ?  ? 
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?

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 The 133 Committee constitutes the link
between the European Commission and the Council. The European Commission, which carries
out international trade negotiations on behalf of the Union, regularly consults the Article 133
committee and acts upon its recommendations.

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1. The common commercial policy shall be based on uniform principles, particularly in regard to
changes in tariff rates, the conclusion of tariff and trade agreements, the achievement of
uniformity in measures of liberalisation, export policy and measures to protect trade such as
those to be taken in the event of dumping or subsidies.

2. The Commission shall submit proposals to the Council for implementing the common
commercial policy.

3. Where agreements with one or more States or international organisations need to be

negotiated, the Commission shall make recommendations to the Council, which shall authorise
the Commission to open the necessary negotiations.

The Commission shall conduct these negotiations in consultation with a special committee
appointed by the Council to assist the Commission in this task and within the framework of such
directives as the Council may issue to it.

The relevant provisions of Article 300 shall apply.

4. In exercising the powers conferred upon it by this Article, the Council shall act by a qualified
majority.

5. The Council, acting unanimously on a proposal from the Commission and after consulting the
European Parliament, may extend the application of paragraphs 1 to 4 to international
negotiations and agreements on services and intellectual property insofar as they are not covered
by these paragraphs.
,  *" 
 
 c
Decision-making at European Union level involves various European institutions, in particular
±? the European Commission,
±? the European Parliament (EP),
±? the Council of the European Union.

In general, it is the European Commission that proposes new legislation, but it is the Council and
Parliament that pass the laws. In some cases, the Council can act alone. Other institutions also
have roles to play.
The main forms of EU law are directives and regulations. The rules and procedures for
EU decision-making are laid down in the treaties. Every proposal for a new European law is
based on a specific treaty article, referred to as the µlegal basis¶ of the proposal. This determines
which legislative procedure must be followed. The three main procedures are µconsultation¶,
µassent¶ and µco-decision¶.

!  
As defined in Article 294 of the TFEU, the co-decision procedure is the legislative process which
is central to the Community's decision-making system. It is based on the principle of parity and
means that neither institution (European Parliament or Council) may adopt legislation without
the other's assent.
One of the important changes introduced by the Lisbon Treaty (or the Treaty of the European
Union (TEU) and the Treaty of the Functioning of the European Union (TFEU)) is the fact that
co-decision becomes the "ordinary legislative procedure", i.e. what used to be the exception in
decision-making has become the norm for most policy areas.

In the codecision procedure, Parliament does not merely give its opinion: it shares legislative
power equally with the Council. If Council and Parliament cannot agree on a piece of proposed
legislation, it is put before a      , composed of equal numbers of Council and
Parliament representatives. Once this committee has reached an agreement, the text is sent once
again to Parliament and the Council so that they can finally adopt it as law. Conciliation is
becoming increasingly rare. Most laws passed in co-decision are, in fact, adopted either at the
first or second reading as a result of good cooperation between the three institutions.

v
The assent procedure means that the Council has to obtain the European Parliament's assent
before certain very important decisions are taken.
The procedure is the same as in the case of consultation, except that Parliament cannot amend a
proposal: it must either accept or reject it. Acceptance (µassent¶) requires an absolute majority1 of
the vote cast.



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  #$%c 
 
  
 $%&' Note: In the elections in
June 2009 which took place on the basis of the Nice Treaty, the number of MEPs was reduced to 736. With the entry
into force of the Lisbon Treaty on 1/12/2009, the number will be increased to 754 once the new arrangements have
been completed and reduced to 751 for the elections in 2014. Consequently, the numbers necessary to reach an
absolute majority will thus change to 378 and 376 respectively!
( 

  
 The assent procedure is mostly used for agreements with other countries, including the
agreements allowing new countries to join the EU.

'  

The consultation procedure is used in areas such as agriculture, taxation and competition. Based
on a proposal from the Commission, the Council consults Parliament, the European Economic
and Social Committee and the Committee of the Regions.
Parliament can:
±? approve the Commission proposal,
±? reject it,
±? or ask for amendments.
If Parliament asks for amendments, the Commission will consider all the changes Parliament
suggests. If it accepts any of these suggestions it will send the Council an amended proposal.
The Council examines the amended proposal and either adopts it or amends it further. In this
procedure, as in all others, if the Council amends a Commission proposal it must do so
‘
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The European Central Bank is the central bank for Europe's single currency, the euro. The
European Central Bank (ECB) was set up in 1 June 1998, under the Treaty on European Union,
and it is based in Frankfurt (Germany). Its job is
!? to manage the euro - the EU's single currency, and
!? to safeguard price stability for the more than two-thirds of the EU's citizens who use the
euro.
!? The ECB is also responsible for framing and implementing the EU¶s economic and
monetary policy (Treaty article 105.1).

According to the Treaty establishing the European Community (Article 105.2), the basic tasks
are:

ë? the definition and implementation of monetary policy for the euro area;
ë? the conduct of foreign exchange operations;
ë? the holding and management of the official foreign reserves of the euro area countries
(portfolio management).
ë? the promotion of the smooth operation of payment systems.

The ECB, as the core of the newly established central banking system called the European
System of Central Banks (ESCB), has taken on responsibility for the monetary policy in the euro
area. Under the EC Treaty, the ESCB is entrusted with carrying out central banking functions for
the euro. However, as the ESCB has no legal personality of its own and because of differentiated
levels of integration in EMU, the real actors 
  c   / of the euro area
countries. They exercise the core functions of the ESCB under the 0c
´. The
ESCB is made up of the ECB and the NCBs of the 27 EU Member States. Its ³organic law´ is
the Protocol on the Statute of the European System of Central Banks and of the European Central
Bank (Statute of the ESCB), which is annexed to the EC Treaty.

cÄ includes the NCBs of all EU Member States, even those which have not adopted the
euro because of their special status (Denmark and the United Kingdom) or because of derogation
(Sweden and the ten new EU Member States). As the non-participating Member States have
maintained their monetary sovereignty, their respective central banks are not involved in
carrying out the System¶s core functions. Therefore, to help the public to understand the complex
structure of the European central banking system more easily, the Governing Council of the ECB
decided in November 1998 to adopt the term 0c
´. This term refers to the composition
± the ECB and the NCBs of the Member States that have adopted the euro ± in which the ESCB
performs its basic tasks.

There are three main political and economic reasons why a system was established to carry out
central bank functions for the euro, and not a single central bank:
 1.? The establishment of a single central bank for the whole euro area would not have been
acceptable on political grounds.
2.? The Eurosystem approach builds on the experience of the NCBs, preserves their
institutional set-up, infrastructure and operational capabilities and expertise; moreover,
NCBs continue to perform some non-Eurosystem-related tasks.

3.? Given the large geographic area of the euro area, it was deemed appropriate to give credit
institutions an access point to central banking in each participating Member State. Given
the large number of nations and cultures in the euro area, domestic institutions (rather
than a supranational one) were considered best placed to serve as points of access to the
Eurosystem.

The ECB works in complete independence. Neither the ECB, the national central banks of the
Eurosystem, nor any member of their decision-making bodies can ask for or accept instructions
from any other body. The EU institutions and member state governments must respect this
principle and must not seek to influence the ECB or the national central banks.

To join the euro area, the 16 countries had to fulfil the ÷

÷÷
as will other EU
Member States prior to adopting the euro. The criteria set out the economic and legal
preconditions for countries to participate successfully in Economic and Monetary Union.


à

÷÷ ÷ 
 
1.? 
  the achievement of a high degree of price stability, does not exceed more than 1½
percentage points;

2.? _   the sustainability of the government financial position; this will be apparent from having
 achieved a government budgetary position without a deficit that is excessive;

3.? c2 
 ³the observance of the normal fluctuation margins provided for by the exchange-
rate mechanism of the European Monetary System, for at least two years, without devaluing against the currency
of any other Member State´.
 4.? !
 

: ³the durability of convergence achieved by the Member State and of its
 participation in the exchange-rate mechanism of the European Monetary System being reflected in the long-term
 interest-rate levels´.


,  *"   c


1
   !
The Governing Council is the main decision-making body of the ECB and is entitled to take the
most important and strategically significant decisions for the Eurosystem.

*

 !? Members of the Executive Board (6) and
!? The governors of the national central banks of the euro area countries (16).

¢    
In line with Article 12.1 of the Statute of the ESCB, the Governing Council is responsible for 
   2  
  2 

   c2   
. With regard to the
objectives and tasks entrusted to the Eurosystem, it is in particular responsible for formulating
the monetary policy of the euro area. In this context, the Governing Council defines the ECB¶s
monetary policy strategy and the operational framework, takes the necessary decisions (for
instance on the key ECB interest rates) and adopts the guidelines to be followed by the
Eurosystem NCBs for the execution of monetary policy operations.

Other competences include:

? issuing guidelines for all other operations of the NCBs as well as for the transactions of
euro area countries in their foreign exchange working balances;
? adopting the regulations which the ECB may enact in application of the Treaty or by
delegation from the EU Council;
? authorizing the issue of euro banknotes and the volume of issue of euro coins for the euro
area;
? establishing the rules to standardize the accounting and reporting of NCB operations;
? initiating Community legislation and fulfilling the advisory function of the ECB and
deciding on the international representation of the Eurosystem;
? deciding on the allocation of financial resources to the ECB and the appropriation of its
financial results, and adopting the rules governing the allocation of monetary income
among the euro area NCBs;
? adopting the Annual Report and Annual Accounts of the ECB.

In addition, the Governing Council is the  
   !"   
 
  
  c  . It adopts the Rules of Procedure of the ECB, determines
the conditions of employment of the members of the Executive Board and the ECB staff and
sets the ECB¶s budget.

1
 

The Governing Council acts as a collegiate body in line with the   
principle.
This means that except for decisions on certain 

÷   , the votes are not weighted.
The principle reflects


÷  
 
according to the NCBs¶s share
the fact that all the
in the subscribed capital of the ECB are:
members, including
ë? the paying-up and increases in the ECB¶s capital (Article 28);
the NCB governors,
ë? revisions of the ECB¶s key for capital subscription (Article 29);
are appointed in their
ë? transfers of foreign reserve assets to the ECB (Article 30);
personal capacity
ë? the allocation of NCBs¶ monetary income (Articles 32 and 51); and
and not as
ë? the allocation of the ECB¶s net profits and losses (Article 33).
representatives of
their countries or
their NCBs. Instead, they have to act in the interest of, and with due regard to the situation in, the
euro area as a whole.
The Governing Council normally acts by a   
 of the votes cast by the members
who are present in person. In the event of a tie, the President has the deciding vote. These rules
ensure that decisions cannot be blocked by a minority of Governing Council members and that
the ECB preserves its capacity to act at any point in time.

In two specific cases, a !

 of the votes cast is required:

1.? if the Governing Council finds that non-Eurosystem functions performed by an NCB
interfere with the respective objectives and tasks of the Eurosystem;
2.? if the Governing Council decides on the use of operational methods of monetary control
other than those specified in the Statute of the ESCB.

   is required to recommend an amendment to the Statute of the ESCB through the
simplified amendment procedure (Article 41 of the Statute) or the enabling clause (Article 10.6
of the Statute).

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c2  
34
The Executive Board is the operational decision-making body of the ECB. It is responsible for
all the decisions that have to be taken on a day-to-day basis. Given the nature of monetary
policy, the ECB is required to react and adapt to rapidly changing conditions in the money and
capital markets, to address specific cases and to deal with matters of urgency. This function can
only be performed by a body whose members are involved permanently and exclusively in the
implementation of the ECB¶s policies.

*

!? The President of the ECB,
!? The Vice-President and
!? Four other members,
All members are appointed by common accord of the Heads of State or Government of the euro
area countries.

¢    
!? to exercise certain powers delegated to it by the Governing Council. These include
some of a regulatory nature.
!? to manage the day-to-day business of the ECB;
!? to prepare Governing Council meetings;
!? to implement monetary policy for the euro area in accordance with the guidelines
specified and decisions taken by the Governing Council. In so doing, it gives the
necessary instructions to the euro area NCBs;

The Executive Board currently meets at least once a week. It normally acts by a  

of the votes cast by the members who are present in person. In the event of a tie, the President
has the casting vote.

'
1
  3(
The General Council ensures an institutional link between the Eurosystem and the NCBs of the
non-euro area Member States. Its existence, composition and responsibilities are a consequence
of the different levels of integration in EMU. As such, the General Council will be dissolved
when all EU Member States have adopted the euro as their currency.

*

!? President and Vice-President of the ECB, plus
!? The governors of the national central banks (NCBs) of the 27 EU Member States

¢    
!? It carries out the tasks taken over from the European Monetary Institute which the ECB is
required to perform in Stage Three of Economic and Monetary Union (EMU) on account
of the fact that not all EU Member States have adopted the euro yet.

!?
1
   
 

? the ECB's advisory functions;

? the collection of statistical information;
? the preparation of the ECB's annual reports;
? the establishment of the necessary rules for standardizing the accounting and
reporting of operations undertaken by the NCBs;
? the taking of measures relating to the establishment of the key for the ECB's
capital subscription other than those already laid down in the Treaty;
? the laying-down of the conditions of employment of the members of staff of the
ECB; and the necessary preparations for irrevocably fixing the exchange rates of
the currencies of the EU Member States with a derogation against the euro.
à
 




The co-decision procedure is a legislative process introduced by the Treaty of Maastricht (Treaty
on European Union) 1991 and now enshrined in Article 251 of the EC Treaty. In the co-decision
procedure, the European Parliament and the Council jointly adopt (i.e. co-decide) legislation.
The Parliament now shares legislative authority with the Council. Co-decision requires
consensus to be reached between the Council and the Parliament for legislation to be adopted.

The co-decision procedure has been applied to most Directives adopted since the Maastricht
Treaty and has given Parliament a much greater role and influence in the formulation of EU
legislation in the field of employment and industrial relations.

By virtue of its co-decision power, the legislative power of the Parliament is greatly
strengthened. Where the Council and Parliament cannot agree on proposed legislation, a
compromise is sought through the establishment of a µConciliation Committee¶. If agreement
cannot be reached, the proposed legislation µshall be deemed not to have been adopted¶.
Effectively, the Parliament has a veto power: it is able, by absolute majority vote, to block a
proposed legislative measure. The Parliament remains powerless, however, to enact legislation
by itself.

The outcome is that the EU institutional framework resembles a dual legislative system, albeit
with certain important specific qualities: the Council reflects national interests; Parliament is
divided along party political lines; decisions in the Council may require unanimity, whereas in
Parliament a majority will suffice; Parliament can veto but cannot initiate or enact legislation by
itself. In practice, Parliament can exercise greater influence over EU legislation, through the
process whereby it scrutinises legislative proposals more closely, is able to propose amendments,
and may exercise a veto.

The Maastricht Treaty (1991) and the Nice Treaty (2000) extended the co-decision procedure to
legislative proposals in some of the areas of employment and industrial relations. The Maastricht
Treaty allowed qualified majority voting in some of the areas listed in Article 137(1) EC:

!? 
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    +
!? 
   

+
!?  
 
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+
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    !

The Treaty of Nice 2000 extended co-decision procedures applicable to further areas listed in
Article 137(1) EC:

!? 
 




 
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!

However, such extension requires a unanimous vote in the Council (Article 137(2) paragraph 3
EC). A requirement of unanimity means that such procedures are less used and less successful.
The co-decision procedure, when combined with qualified majority voting in the Council, is the
formula most likely to produce EU legislative action in the field of employment and industrial
relations.

In practice, the co-decision procedure affects not only the dynamics of the legislative process but
also has a potential effect on EU social dialogue. Coupled with qualified majority voting, the co-
decision procedure makes it easier for the Parliament to promote or block legislation. This may
provide an indirect incentive to the social partners to negotiate and conclude agreements in the
social dialogue.

Legislature: where laws are made. In most countries, the legislature is likely to be the nationally
elected body. In the UK this is Parliament (of which the elected ± and most powerful ±
component is the House of Commons); in the United States this is Congress (the House of
Representatives and the Senate), although there is also a directly elected Executive in the form of
the president.

In the European Union, however, this is something of a problem. The directly elected body is the
European Parliament, but it is not a law-making body. Originally if could be argued that the
Council of European Unionwas the legislature. Laws were proposed by the Commission but
needed the imprimatur of the Council of Ministers. Over time, this responsibility has been shared
with the European parliament, to the extent that both bodies are now !  "
.
However, unlike most legislatures, the European Parliament cannot initiate legislation.


   
 

  
 

This process enables the European Parliament to give opinion on a policy proposal from the
Commission. The Council of European Union must consult with the European parliament but is
under no obligation to follow the Parliament¶s position. It had been initiated from Treaty of
Rome. Today, this is the first step in the legislative process. Subsequently there is co-operation
and co-decision.


 
 


This was introduced by the Single European Act. It increased the influence of the European
parliament in the legislative process, by giving it, in effect, a second reading. If the opinions of
the European parliament, as expressed in the consultation procedure, are not accepted, the co-
operation procedure enables the Parliament to express their opinion about the position of the
Council of European Union. To amend or reject proposals from the Council of European Union,
the European Parliament requires the support of an absolute majority of its members. However,
the Council of European Unionmay still veto the proposals of the Parliament. After this process,
there is now a third reading ± the !   process.

'v
 

It is particular power given to the c
 
  over particular policy areas, for
example enlargement. The power was granted under the Ä  c
 v   (5&.
Ultimately, the assent procedure gives the European Parliament a µYes/No¶ option, which places
it on a par with the other institutions. Acceptance (µassent¶) requires an absolute majority2 of the
vote cast.Thus the European parliament, by refusing to give assent, could block any further
enlargements of the European Union. There is no option to amend any proposals.

.!  

The power of co-decision was introduced through the Treaty on European Union. It means that
the European Parliament and the Council of European Union have become almost equal partners
in the legislative process of the European Union. If effect, the European Parliament is consulted
on three occasions (similar to the three readings of a bill in the British House of Commons) on
legislative proposals. The steps are consultation, co-operation and co-decision. If the options of
the European Parliament are not accepted, the Council of European Union in now compelled to
explain its reasoning. The Council of European Union must also be unanimous in its rejection of
the advice of the European Parliament.




v

  c

 

 


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  #$%c 
 
  
 $%&' Note: In the elections in
June 2009 which took place on the basis of the Nice Treaty, the number of MEPs was reduced to 736. With the entry
into force of the Lisbon Treaty on 1/12/2009, the number will be increased to 754 once the new arrangements have
been completed and reduced to 751 for the elections in 2014. Consequently, the numbers necessary to reach an
absolute majority will thus change to 378 and 376 respectively!
( 

  

  
 
  '  
  


)    


 
 !
 
6 Ä
Ä *
6 
A method of voting used in the Council of European Union. It is employed for the least
contentious of policies, such as procedural issues.
Within the Council of European Union, each member state normally receives a set number of
votes in relation to its population size (see Table C3). With simple majority voting, however,
each member state gets a single vote. Currently, 14 votes out of the 27 are required to be cast in
favour of a policy for it to be passed.

7  
 %7*6)
This system is used for much decision-making in the Council of Ministers. Each member state is
given a specified number of votes, dependent upon the population size of the country. Table C3
details the weights of votes for each member states.

From 1 January 2007, with the enlargement of the European Union (EU) to include Bulgaria and
Romania, the weightings of QMV changed. Two conditions have to be met. The first is that a
majority of members must support the motion (often it has to be two-thirds of members states.
Second, 255 votes (out of the total of 345) have to support the motion (which is about 74 percent
of the total votes). Added to this, there could be a further requirements that the votes must
represent at least 62 per cent of the EU population (in the treaty 65%). Failure to do so would see
the decision not being adopted.

There were proposals within the draft European constitution to reform the system of QMV, as
well as to broaden the number of policy areas governed by this particular method of voting
within the Council of Ministers. The proposal was to have a minimum of 55 percent of member
states (and 65 percent of the EU population) to support a particular proposal for it to be accepted.
For proposals to be blocked, at least fourm member states would need to vote against them. This
would prevent the most populous states from blocking almost any legislation. Note that the
largest four countries (Germany, UK, France and Italy) comprise over half of the EU population
± collectively they make up 259 million out of the total EU population of 492 million, or 52.5
percent of the EU population.

', 
 
This system of voting has been utilized by the Council of European Union since November 2004
(although it was agreed at the Treaty of Nice in 2001). In effect, it takes qualified majority voting
(QMV) one step further. Under QMV, it is possible for a majority of votes to be achieved
without a majority of countries or a majority of the European Union population actually
supporting the legislative proposals. Double majority voting aims to prevent such a situation
from occurring. A member state can request verification that a vote that is passed under QMV
also represents at least 62 per cent of the EU population. If it does not then the legislative
proposals may not be ratified. The draft European constitution had proposed to amend both
QMV weightings which build in the double majority requirements. (see also unanimous decision
making).

.    !" 
Unanimous decision-making, or unanimity, was a result of the Luxembourg Compromise. In
effect, it means that all member states must be in support of a policy proposal in the Council of
European Unionfor it to go ahead.
There was a reduction in the number of decisions subject to unanimity as a result of the Single
European Act. After that particular piece of legislation, many more decisions became subject ot
qualified majority voting (QMV). The number of areas which are now subject ot QMV has
grown. There are, however, specific areas where unanimity is still required. One of the most
prominent of these is enlargement. For a new member to accede to the European Union, all
member states must be in support. An example of where unanimous support did not occur is the
Treaty of Nice. The Irish had to subject this treaty to a national referendum. It was defeated,
which meant that the proposed enlargement of 2004 could not proceed. A second referendum
was held at a later date which enabled the enlargement to go ahead.

5. v  
 (in the European Parliament): Majority of the members who comprise
Parliament. In its present configuration (with 736 MEPs), the threshold for an absolute majority
is 369 votes (
  
 
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). Under the co-decision
procedure, an absolute majority is necessary in plenary session when voting on a second reading
in order to reject the Council position at first reading or to adopt amendments.



 
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ARTICLE 113
1.? After the transitional period has ended, the common commercial policy shall be based on
uniform principles, particularly in regard to changes in tariff rates, the conclusion of tariff and
trade agreements, the achievement of uniformity in measures of liberalisation, export policy and
measures to protect trade such as those to be taken in case of dumping or subsidies.

2.? The Commission shall submit proposals to the Council for implementing the common
commercial policy.

3.? Where agreements with third countries need to be negotiated, the Commission shall make
recommendations to the Council, which shall authorise the Commission to open the necessary
negotiations.

The Commission shall conduct these negotiations in consultation with a    
       to assist the Commission in this task and within the framework of
such directives as the Council may issue to it.

4.? In exercising the powers conferred upon it by this Article, the Council shall act by a qualified
majority.

ARTICLE 114
The agreements referred to in Article 111(2) and in Article 113 shall be concluded by the
Council on behalf of the Community, acting unanimously during the first two stages and by a
qualified majority thereafter.
2. *+8%555!(&()
Jean Monnet is often seen as the founding father of the European Union. He was not a politician
but rather an official. He drew up plans for a form of federal Europe during the interwar period.
These were shelved but Monnet came to the forefront of the next Eurupean project after World
War Two, influencing the then French Foreign Minister Robert Schuman. Monnet became the
first President of the High Authority of the European Coal and Steel Community (the precursor
to the current President of the Commission).

1n 1953, Monnet was awarded the Charlernagne Award (or Karlspreis) for his outstanding
contributions to the process of European integration. Schuman also received the award, in 1958.
Monnet was keen for Britain to be involved in the European project. However, he did note:
µthere is one thing you Brithish will never understand: an idea. And there is one thing you are
supremely good at grasping: a hard fact. We will have to make Europe without you ± but then
you will come in and join us.´ This was a profound observation, although the enthusiasm with
which Britain joined the then European Economic Community (EEC) and its participation since
did not live up to Monnet¶s hopes and dreams.
   
 

  
 

This process enables the European Parliament to give opinion on a policy proposal from the
Commission. The Council of European Union must consult with the European parliament but is
under no obligation to follow the Parliament¶s position. It had been initiated from Treaty of
Rome. Today, this is the first step in the legislative process. Subsequently there is co-operation
and co-decision.


 
 


This was introduced by the Single European Act. It increased the influence of the European
parliament in the legislative process, by giving it, in effect, a second reading. If the opinions of
the European parliament, as expressed in the consultation procedure, are not accepted, the co-
operation procedure enables the Parliament to express their opinion about the position of the
Council of European Union. To amend or reject proposals from the Council of European Union,
the European Parliament requires the support of an absolute majority of its members. However,
the Council of European Unionmay still veto the proposals of the Parliament. After this process,
there is now a third reading ± the !   process.

'v
 

It is particular power given to the c
 
  over particular policy areas, for
example enlargement. The power was granted under the Ä  c
 v   (5&.
Ultimately, the assent procedure gives the European Parliament a µYes/No¶ option, which places
it on a par with the other institutions. Acceptance (µassent¶) requires an absolute majority3 of the
vote cast.Thus the European parliament, by refusing to give assent, could block any further
enlargements of the European Union. There is no option to amend any proposals.

.!  

The power of co-decision was introduced through the Treaty on European Union. It means that
the European Parliament and the Council of European Union have become almost equal partners
in the legislative process of the European Union. If effect, the European Parliament is consulted
on three occasions (similar to the three readings of a bill in the British House of Commons) on
legislative proposals. The steps are consultation, co-operation and co-decision. If the options of
the European Parliament are not accepted, the Council of European Union in now compelled to
explain its reasoning. The Council of European Union must also be unanimous in its rejection of
the advice of the European Parliament.



$
v

  c

 

 


 !"  

  
  #$%c 
 
  
 $%&' Note: In the elections in
June 2009 which took place on the basis of the Nice Treaty, the number of MEPs was reduced to 736. With the entry
into force of the Lisbon Treaty on 1/12/2009, the number will be increased to 754 once the new arrangements have
been completed and reduced to 751 for the elections in 2014. Consequently, the numbers necessary to reach an
absolute majority will thus change to 378 and 376 respectively!
( 

  

  
 
  '  
  


)    


 
 !
 
6 Ä
Ä *
6 
A method of voting used in the Council of European Union. It is employed for the least
contentious of policies, such as procedural issues.
Within the Council of European Union, each member state normally receives a set number of
votes in relation to its population size (see Table C3). With simple majority voting, however,
each member state gets a single vote. Currently, 14 votes out of the 27 are required to be cast in
favour of a policy for it to be passed.

7  
 %7*6)
This system is used for much decision-making in the Council of Ministers. Each member state is
given a specified number of votes, dependent upon the population size of the country. Table C3
details the weights of votes for each member states.

From 1 January 2007, with the enlargement of the European Union (EU) to include Bulgaria and
Romania, the weightings of QMV changed. Two conditions have to be met. The first is that a
majority of members must support the motion (often it has to be two-thirds of members states.
Second, 255 votes (out of the total of 345) have to support the motion (which is about 74 percent
of the total votes). Added to this, there could be a further requirements that the votes must
represent at least 62 per cent of the EU population (in the treaty 65%). Failure to do so would see
the decision not being adopted.

There were proposals within the draft European constitution to reform the system of QMV, as
well as to broaden the number of policy areas governed by this particular method of voting
within the Council of Ministers. The proposal was to have a minimum of 55 percent of member
states (and 65 percent of the EU population) to support a particular proposal for it to be accepted.
For proposals to be blocked, at least fourm member states would need to vote against them. This
would prevent the most populous states from blocking almost any legislation. Note that the
largest four countries (Germany, UK, France and Italy) comprise over half of the EU population
± collectively they make up 259 million out of the total EU population of 492 million, or 52.5
percent of the EU population.

', 
 
This system of voting has been utilized by the Council of European Union since November 2004
(although it was agreed at the Treaty of Nice in 2001). In effect, it takes qualified majority voting
(QMV) one step further. Under QMV, it is possible for a majority of votes to be achieved
without a majority of countries or a majority of the European Union population actually
supporting the legislative proposals. Double majority voting aims to prevent such a situation
from occurring. A member state can request verification that a vote that is passed under QMV
also represents at least 62 per cent of the EU population. If it does not then the legislative
proposals may not be ratified. The draft European constitution had proposed to amend both
QMV weightings which build in the double majority requirements. (see also unanimous decision
making).

.    !" 
Unanimous decision-making, or unanimity, was a result of the Luxembourg Compromise. In
effect, it means that all member states must be in support of a policy proposal in the Council of
European Unionfor it to go ahead.
There was a reduction in the number of decisions subject to unanimity as a result of the Single
European Act. After that particular piece of legislation, many more decisions became subject ot
qualified majority voting (QMV). The number of areas which are now subject ot QMV has
grown. There are, however, specific areas where unanimity is still required. One of the most
prominent of these is enlargement. For a new member to accede to the European Union, all
member states must be in support. An example of where unanimous support did not occur is the
Treaty of Nice. The Irish had to subject this treaty to a national referendum. It was defeated,
which meant that the proposed enlargement of 2004 could not proceed. A second referendum
was held at a later date which enabled the enlargement to go ahead.

5. v  
 (in the European Parliament): Majority of the members who comprise
Parliament. In its present configuration (with 736 MEPs), the threshold for an absolute majority
is 369 votes (
  
 
    ‘   
 
 
 
 
 
 


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 !‘!
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&  


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!
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!
! !‘!
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!"# 
). Under the co-decision
procedure, an absolute majority is necessary in plenary session when voting on a second reading
in order to reject the Council position at first reading or to adopt amendments.