Overview of EC law and Institutions

1. Overview of EC law and Institutions Dubrovnik June 2009

2. The Commission • Refers to College (all 27 Commissioners) and to permanent civil servants • Commissioners (five year renewable term) nominated by MS but independent in performance of duties • President of Commission nominated by European Council and approved by EP • List of Commissioners subject to scrutiny of EP parliamentary committee before approval by EP list adopted by Council (QMV)

3. Powers of Commission • Legislative • Right of legislative initiative • Develops policy (5 year plan (with Council and EP approval) and yearly overall legislative agenda • Administrative • Policy made must be administered • Legislation once enacted must be implemented

4. Powers of Commission • Executive • Budget (significant powers over expenditure –agri and structural funds) • External relations (represents Community at WTO, UN, Council of Europe, OECD) • Accession negotiations • Judicial • Article 226 enforcement actions against MS • State aid and competition decisions, reviewable to CFI

5. Council • Representative of each MS at ministerial level who is authorised to commit government of that State (politicians not civil servants) • Meetings arranged by subject matter (e.g. Ecofin, GAERC) and different national Ministers attend • 6 month rotating presidency • Work prepared by COREPER II (economic and financial affairs and external relations - permanent national reps of ambassadorial rank) and COREPER I (environment, social affairs, internal market transport - deputy permanent reps)

6. Role of Council • Co-legislator with EP • Council must vote approval (unanimity, qualified majority, simple majority depending on Treaty Article) on virtually all Commission legislative initiatives • Can delegate powers to Commission allowing it to pass regulations • Budget – with EP • Concludes agreements with non MS and international organisations • Significant power under Pillars II and III

7. European Council • No important internal/external developments occur without consideration at IGC • Consists of Heads of State and Commission President • Sets pace and shape of Community policy (e.g. Lisbon Agenda) • Meets approx 4 times a year (two per presidency) • Conflict resolution e.g. budget • Consider new accessions

8. European Parliament • Transformation from relatively powerless Assembly to much strengthened institution today • Sits in Strasbourg, secretariat in Luxembourg and meets in Brussels to facilitate contact with Commission and Council • Only directly elected Community institution (1979) • MEPs have 5 year terms • Any citizen of the Union, resident in a MS has a right to vote and stand as candidate in EP elections • Sits in political groups rather than by nationality • Elects own President and work done via 20 standing committees

9. European Parliament • After TEU, co-decision now applies to much important Community legislation • Thus EP co-equal partner with Council • Less power in initiatives under pillars II and III • Can censure Commission and require its resignation • EP must approve Commission President and Commissioners (three replacement nominees last time around) • Supervisory (Qs, and appointment of Ombudsman) • Important powers in relation to budget (Article 272 EC)

10. European Courts • 1 Judge per MS to ECJ for 6 years and renewable (CFI at least 1 Judge) • Full court, grand chamber (13), 5/3 Judges • AG delivers single opinion while Judgments are collegiate and no dissent or concurring Judgments • ECJ fashioned seminal principles of Community legal order such as direct effect, supremacy, state liability for damages

11. European Court of Justice • Preliminary rulings interpreting the EC Treaty (Preliminary References from national courts or tribunals), on the validity of acts of the Institutions and ECB (Article 234) • Can review the legality of acts adopted jointly by EP and Council, Council, Commission and ECB and acts of EP intended to produce legal effects on third parties • Cases by Commission against MS for failure to fulfill its Treaty obligations (Article 226) • May impose lump sum or periodic penalty payments on MS who have not taken measures to comply with an earlier judgment of the Court (Article 228) • Actions for failure to act (Article 232) • Private actions against a Decision which is of direct and individual concern (Article 230)

12. Court of Auditors • Established 1975, operational 1977, got status of fifth Community institution in TEU (Article 7) • Sits in Luxembourg, structure similar to European Court • 1 national per Member State, appointed by Council (QM) following consultation with EP. • Must be qualified and independent in office. • Task: to scrutinize finances of Community and ensure sound financial management • Draws up annual report, adopted by majority of members which is sent to other Community institutions and published in Official Journal with their replies.

13. Sources of EC law • EC Treaty itself • Regulations - Directly applicable in all MSs • Directives - Binding on the MS to which it is addressed for the result to be achieved, it leaves the MS with the choice of form and method of implementation • Decisions – Binding in its entirety on those to whom it is addressed • Opinions and Recommendations – not binding • Soft law: Guidelines

14. EC law • No magic formula as to which legislative procedure to use, differs depending on the Treaty Article being relied on. • Much important legislation now governed by co-decision (ex agri, fisheries, tax, trade policies, competition, EMU) - even more if Lisbon Treaty is ratified. • Representing clients effectively requires an understanding of how the process works and where and how it can best be influenced.