Topic 12 2023 EU-2

International Organizations. Prof. Dr.Dr. José Escribano. 2023.
UC3M
12. European Union ( II )
https://european-union.europa.eu/index_en
A ) Main Institutions and rules

B ) Main policies.
C ) External Action
D ) The European Union at present and challenges in the
enlargement of the European integration
A ) MAIN INSTITUTIONS AND RULES.
EU institutions, organs and bodies
7 Institutions
• European Parliament
Overview
• Role: Directly-elected EU body with legislative, supervisory, and budgetary
responsibilities
• Members: 705 MEPs (Members of the European Parliament ).
• Established in: 1952 as Common Assembly of the European Coal and Steel
Community, 1962 as European Parliament, first direct elections in 1979
• President: Roberta Metsola
• Location: Strasbourg (France), Brussels (Belgium), Luxembourg
• Website: European Parliament
The European Parliament is the EU's law-making body. It is directly elected by EU voters
every 5 years. The last elections were in May 2014. In may 2019 were celebrated the elections
for the European Parliament mandate until 2024.
Elections
The next European elections took place between 23-26 May 2019.
More about the European elections
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International Organizations. Prof. Dr.Dr. José Escribano. 2023. UC3M
What does the Parliament do?

The Parliament has 3 main roles:
Legislative
• Passing EU laws, together with the Council of the EU, based on European
Commissionproposals
• Deciding on international agreements
• Deciding on enlargements
• Reviewing the Commission's work programme and asking it to propose legislation
Supervisory
• Democratic scrutiny of all EU institutions

• Electing the Commission President and approving the Commission as a body.
Possibility of voting a motion of censure, obliging the Commission to resign
• Granting discharge, i.e. approving the way EU budgets have been spent
• Examining citizens' petitions and setting up inquiries
• Discussing monetary policy with the European Central Bank
• Questioning Commission and Council
• Election observations
Budgetary
• Establishing the EU budget, together with the Council

• Approving the EU's long-term budget, the "Multiannual Financial Framework"
Composition
The number of MEPs for each country is roughly proportionate to its population, but this is by
degressive proportionality: no country can have fewer than 6 or more than 96 MEPs and the total
number cannot exceed 751 (750 plus the President). MEPs are grouped by political affiliation, not by
nationality.
The President represents Parliament to other EU institutions and the outside world and gives the
final go-ahead to the EU budget.
How does the Parliament work?

Parliament's work comprises two main stages:
• Committees - to prepare legislation.

The Parliament numbers 20 committees and two subcommittees, each handling a
particular policy area. The committees examine proposals for legislation, and MEPs
and political groups can put forward amendments or propose to reject a bill. These
issues are also debated within the political groups.
• Plenary sessions – to pass legislation.
This is when all the MEPs gather in the chamber to give a final vote on the proposed
legislation and the proposed amendments. Normally held in Strasbourg for four days a
month, but sometimes there are additional sessions in Brussels.
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• European Council
Overview
• Role: Defines the general political direction and priorities of the

European Union
• Members: Heads of state or government of EU countries, European
Commission President, High Representative for Foreign Affairs &
Security Policy
• Established in: 1974 (informal forum), 1992 (formal status), 2009
(official EU institution)
• President: Charles Michel
• Location: Brussels (Belgium)
• Website: European Council
The European Council brings together EU leaders to set the EU's political
agenda. It represents the highest level of political cooperation between EU
countries.
One of the EU's 7 official institutions, the Council takes the form of (usually
quarterly) summit meetings between EU leaders, chaired by a permanent
president.
What does the European Council do?
• Decides on the EU's overall direction and political priorities – but does not
pass laws.
• Deals with complex or sensitive issues that cannot be resolved at lower
levels of intergovernmental cooperation
• Sets the EU's common foreign & security policy, taking into account EU
strategic interests and defence implications
• Nominates and appoints candidates to certain high profile EU level roles, such
as the ECB and the Commission
On each issue, the European Council can:
• ask the European Commission to make a proposal to address it.

• pass it on to the Council of the EU to deal with
Composition
The European Council is made up of the heads of state or government of all EU
countries, theEuropean Commission President and the High Representative for
Foreign Affairs & Security Policy.
It is convened and chaired by its President, who is elected by the European
Council itself for a once-renewable two-and-a-half-year term. The President
represents the EU to the outside world.
How does the European Council work?
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It usually meets 4 times a year – but the President can convene additional
meetings to address urgent issues.
It generally decides issues by consensus – but by unanimity or qualified
majority in some cases. Only the heads of state/government can vote.
• Council of the European Union

Overview
• Role: Voice of EU member governments, adopting EU laws and coordinating

EU policies
• Members: Government ministers from each EU country, according to the
policy area to be discussed
• President: Each EU country holds the presidency on a 6-month rotating basis
• Established in: 1958 (as Council of the European Economic Community)
• Website: Council of the EU
In the Council, government ministers from each EU country meet to discuss, amend and
adopt laws, and coordinate policies. The ministers have the authority to commit their
governments to the actions agreed on in the meetings.
Together with the European Parliament, the Council is the main decision-making body of the
EU.
Not to be confused with:
• European Council - quarterly summits, where EU leaders meet to set the broad
direction of EU policy making
• Council of Europe - not an EU body at all.
What does the Council do?

• Negotiates and adopts EU laws, together with the European Parliament, based on
proposals from the European Commission
• Coordinates EU countries' policies
• Develops the EU's foreign & security policy, based on European Council guidelines
• Concludes agreements between the EU and other countries or international
organisations
• Adopts the annual EU budget - jointly with the European Parliament.
Composition
There are no fixed members of the EU Council. Instead, the Council meets in 10 different
configurations, each corresponding to the policy area being discussed. Depending on the
configuration, each country sends their minister responsible for that policy area.
For example, when the Council meeting on economic and financial affairs (the "Ecofin Council") is
held, it is attended by each country's finance minister.
Who chairs the meetings?

The Foreign Affairs Council has a permanent chairperson - the EU High Representative for Foreign
Affairs and Security Policy. All other Council meetings are chaired by the relevant minister of the
country holding the rotating EU presidency.
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For example, any Environment Council meeting in the period when Estonia holds the presidency will
be chaired by the Estonian environment minister.
Overall consistency is ensured by the General Affairs Council - which is supported by the
Permanent Representatives Committee. This is composed of EU countries' Permanent
Representatives to the EU, who are, in effect, national ambassadors to the EU.
Eurozone countries
Eurozone countries coordinate their economic policy through the Eurogroup, which consists of
their economy and finance ministers. It meets the day before Economic & Financial Affairs Council
meetings. Agreements reached in Eurogroup gatherings are formally decided upon in the Council the
next day, with only ministers of Eurozone countries voting on those issues.
How does the Council work?

• All discussions & votes take place in public.
• To be passed, decisions usually require a qualified majority :
o 55% of countries.
o representing at least 65 % of total EU population.
To block a decision, at least 4 countries are needed (representing at least 35% of total EU
population)
• Exception - sensitive topics like foreign policy and taxation require a unanimous
vote (all countries in favour).
• Simple majority is required for procedural & administrative issues
• European Commission
Overview
• Role: Promotes the general interest of the EU by proposing and enforcing

legislation as well as by implementing policies and the EU budget
• President: Ursula von der Leyen
• Members: A team or 'College' of 27 Commissioners, 1 from each EU country
• Year established: 1958
• Website: European Commission
The European Commission is the EU's politically independent executive arm. It is alone
responsible for drawing up proposals for new European legislation, and it implements the decisions
of the European Parliament and the Council of the EU.
What does the Commission do?

Proposes new laws
The Commission is the sole EU institution tabling laws for adoption by the Parliament and the
Council that:
• protect the interests of the EU and its citizens on issues that can't be dealt with
effectively at national level;
• get technical details right by consulting experts and the public.
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Manages EU policies & allocates EU funding
• Sets EU spending priorities, together with the Council and Parliament.

• Draws up annual budgets for approval by the Parliament and Council.
• Supervises how the money is spent, under scrutiny by the Court of Auditors.
Enforces EU law
• Together with the Court of Justice, ensures that EU law is properly applied in all the
member countries.
Represents the EU internationally
• Speaks on behalf of all EU countries in international bodies, in particular in areas of

trade policy and humanitarian aid.
• Negotiates international agreements for the EU.
Composition
Political leadership is provided by a team of 27 Commissioners (one from each EU
country) – led by the Commission President, who decides who is responsible for which policy area.
The College of Commissioners is composed of the President of the Commission, its six Vice-
Presidents, including the First Vice-President, the High Representative of the Union for Foreign
Affairs and Security Policy, and 21 Commissioners, each responsible for a portfolio.
The day-to-day running of Commission business is performed by its staff (lawyers, economists,
etc.), organised into departments known as Directorates-General (DGs), each responsible for
a specific policy area.
Appointing the President

The candidate is put forward by national leaders in the European Council, taking account of the
results of the European Parliament elections. He or she needs the support of a majority of members
of the European Parliament in order to be elected.
Selecting the team

The Presidential candidate selects potential Vice-Presidents and Commissioners based on
suggestions from the EU countries. The list of nominees has to be approved by national leaders in the
European Council.
Each nominee appears before the European Parliament to explain their vision and answer questions.
Parliament then votes on whether to accept the nominees as a team. Finally, they are appointed by
the European Council, by a qualified majority.
The current Commission's term of office runs until 2024.
How does the Commission work?

Strategic planning
The President defines the policy direction for the Commission, which enables the Commissioners
together to decide strategic objectives, and produce the annual work programme.
Collective decision making

Decisions are taken based on collective responsibility. All Commissioners are equal in the decision-
making process and equally accountable for these decisions. They do not have any individual
decision-making powers, except when authorized in certain situations.
The Vice-Presidents act on behalf of the President and coordinate work in their area of responsibility,
together with several Commissioners. Priority projects are defined to help ensure that the College
works together in a close and flexible manner.
Commissioners support Vice-Presidents in submitting proposals to the College. In general, decisions
are made by consensus, but votes can also take place. In this case, decisions are taken by simple
majority, where every Commissioner has one vote.
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The relevant Directorate-General (headed by a Director-General, answerable to the relevant

Commissioner) then takes up the subject. This is usually done in the form of draft legislative
proposals.
These are then resubmitted to the Commissioners for adoption at their weekly meeting, after which
they become official, and are sent to the Council and the Parliament for the next stage in the EU
legislative process.
• Court of Justice of the European Union (CJEU)

Overview
• Role: Ensuring EU law is interpreted and applied the same in every EU country; ensuring countries and EU
institutions abide by EU law.
• Members:
o Court of Justice: 1 judge from each EU country, plus 11 advocates general

o General Court: 54 judges. 2 judges from each EU country).
• Established in: 1952
• Location: Luxembourg
• Website: Court of Justice of the European Union (CJEU)
The Court of Justice of the European Union (CJEU) interprets EU law to make sure it isapplied in
the same way in all EU countries, and settles legal disputes between national governments and
EU institutions.
It can also, in certain circumstances, be used by individuals, companies or organisationsto
take action against an EU institution, if they feel it has somehow infringed their rights.
What does the CJEU do?

The CJEU gives rulings on cases brought before it. The most common types of case are:
• interpreting the law (preliminary rulings) – national courts of EU countries are required to ensure EU law is properly
applied, but courts in different countries might interpret it differently. If a national court is in doubt about the interpretation
or validity of an EU law, it can ask the Court for clarification. The same mechanism can be used to determine whether a
national law or practice is compatible with EU law.
• enforcing the law (infringement proceedings) – this type of case is taken against a national government for failing to
comply with EU law. Can be started by the European Commission or another EU country. If the country is found to be at
fault, it must put things right at once, or risk a second case being brought, which may result in a fine.
• annulling EU legal acts (actions for annulment) – if an EU act is believed to violate EU treaties or fundamental rights, the
Court can be asked to annul it – by an EU government, the Council of the EU, the European Commission or (in some cases)
the European Parliament.
Private individuals can also ask the Court to annul an EU act that directly concerns them.
• ensuring the EU takes action (actions for failure to act) – the Parliament, Council and Commission must make certain
decisions under certain circumstances. If they don't, EU governments, other EU institutions or (under certain conditions)
individuals or companies can complain to the Court.
• sanctioning EU institutions (actions for damages) – any person or company who has had their interests harmed as a
result of the action or inaction of the EU or its staff can take action against them through the Court.
Composition
The CJEU is divided into 2 courts:
• Court of Justice – deals with requests for preliminary rulings from national courts, certain actions for annulment and
appeals.
• General Court – rules on actions for annulment brought by individuals, companies and, in some cases, EU governments. In
practice, this means that this court deals mainly with competition law, State aid, trade, agriculture, trade marks.
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Each judge and advocate general is appointed for a renewable 6-year term, jointly by national
governments. In each Court, the judges select a President who serves a renewable term of 3 years.
How does the CJEU work?

In the Court of Justice, each case is assigned 1 judge (the "judge-rapporteur") and 1 advocate general.
Cases are processed in 2 stages:
• Written stage
o The parties give written statements to the Court - and observations can also be submitted by national authorities, EU
institutions and sometimes private individuals.
o All of this is summarised by the judge-rapporteur and then discussed at the Court's general meeting, which decides:
▪ How many judges will deal with the case: 3, 5 or 15 judges (the whole Court), depending on the importance and complexity of
the case. Most cases are dealt with by 5 judges, and it is very rare for the whole Court to hear the case.
▪ Whether a hearing (oral stage) needs to be held and whether an official opinion from the advocate general is necessary.
• Oral stage – a public hearing
o Lawyers from both sides can put their case to the judges and advocate general, who can question them.
o If the Court has decided an Opinion of the advocate general is necessary, this is given some weeks after the hearing.
o The judges then deliberate and give their verdict.
• General Court procedure is similar, except that most cases are heard by 3 judges and there are no advocates general.
• European Central Bank (ECB)

Overview
• Role: To manage the euro, keep prices stable and conduct EU economic
& monetary policy
• Members: ECB President and Vice-President and governors of national
central banks from all EU countries
• President: Christine Lagarde
• Location: Frankfurt (Germany)
• Website: European Central Bank
The European Central Bank (ECB) manages the euro and frames and implements EU economic &
monetary policy. Its main aim is to keep prices stable, thereby supporting economic growth and
job creation.
What does the ECB do?

• Sets the interest rates at which it lends to commercial banks in
the eurozone (also known as the euro area), thus controlling money supply and
inflation
• Manages the eurozone's foreign currency reserves and the buying or selling
of currencies to balance exchange rates
• Ensures that financial markets & institutions are well supervised by
national authorities, and that payment systems work well
• Ensures the safety and soundness of the European banking system
• Authorises production of euro banknotes by eurozone countries
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• Monitors price trends and assesses risks to price stability.

Full list of ECB tasks
Composition
The ECB President represents the Bank at high-level EU and international meetings. The ECB has
the 3 following decision-making bodies:
• Governing Council – the main decision-making body.

Consists of the Executive Board (see below) plus the governors of the national
central banks from eurozone countries.
• Executive Board – handles the day-to-day running of the ECB.
Consists of the ECB President and Vice-President and 4 other members
appointed for 8-year terms by the leaders of the eurozone countries.
• General Council – has more of an advisory & coordination role.
Consists of the ECB President and Vice-President and the governors of the
central banks from all EU countries.
How does the ECB work?
The ECB works with the national central banks of all EU countries. Together they form theEuropean
System of Central Banks.
It leads cooperation between central banks in the eurozone. This is referred to as theEurosystem.
The work of the governing bodies
• Governing Council – assesses economic and monetary developments, defines

eurozone monetary policy and fixes the interest rates at which commercial
banks can borrow from the ECB.
• Executive Board – implements monetary policy, manages day-to-day

operations, prepares Governing Council meetings and exercises powers
delegated to it by the Governing Council.
• General Council – contributes to advisory and coordination work and helps

to prepare for new countries joining the euro
• European Court of Auditors (ECA)

Overview
• Role: To check EU funds are collected and used correctly, and help
improve EU financial management.
• Members: 1 from each EU country
• Website: European Court of Auditors
As the EU's independent external auditor, the European Court of Auditors (ECA) looks after the
interests of EU taxpayers. It does not have legal powers, but works to improve theEuropean
Commission's management of the EU budget and reports on EU finances.
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What does the ECA do?

• Audits EU revenue & expenditure, to check EU funds are correctly raised,
spent, achieve value for money and accounted for.
• Checks any person or organisation handling EU funds – including spot
checks in EU institutions (especially the Commission), EU countries and
countries receiving EU aid.
• Writes up findings and recommendations in audit reports, for the European
Commission and national governments.
• Reports suspected fraud, corruption or other illegal activity to
the European Anti-Fraud Office (OLAF)
• Produces an annual report for the European Parliament and Council of the EU,
which the Parliament examines before deciding whether to approve the
Commission's handling of the EU budget.
• Gives its expert opinion to EU policymakers on how EU finances could be
better managed and made more accountable to citizens.
Also publishes opinions on preparatory legislation that will impact EU financial management, as well
as position papers, reviews and ad hoc publications on EU public finance issues.
To be effective, the Court must be independent of the institutions and bodies it audits. To this end,
it is free to decide on:
• what it will audit

• how to do this
• how & when to present its findings
The Court's audit work focuses mainly on the European Commission – the main body responsible for
implementing the EU budget. But it also works closely with national authorities, because the
Commission manages most EU funds (around 80%) jointly with them.
Composition
Court members are appointed by the Council, after consulting the Parliament, for renewable6-
year terms. They choose one of their number as President for a 3-year term (also renewable).
How does the ECA work?

It carries out 3 types of audit:
• Financial audits – checking that accounts accurately present the financial

position, results and cash flow for the year.
• Compliance audits – checking that financial transactions follow the rules.
• Performance audits – checking that the EU funds achieve its goals with the
fewest possible resources and in the most economical manner.
The Court is divided into audit groups called 'chambers'. They prepare reports & opinionsfor the
Court members to adopt, thus making them official.
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ORGANS AND BODIES
• European External Action Service (EEAS)

Overview
• Role: Manages the EU's diplomatic relations with other countries

outside the bloc and conducts EU foreign & security policy
• High Representative for Foreign Affairs & Security Policy:
Federica Mogherini
• Website: European External Action Service
The European External Action Service (EEAS) is the EU's diplomatic service. It aims to make EU
foreign policy more coherent and effective, thus increasing Europe's global influence.
What does the EEAS do?

• Supports the EU High Representative in conducting EU foreign and security
policy
• Manages diplomatic relations & strategic partnerships with non-EU
countries
• Works with the national diplomatic services of EU countries, the UN and
other leading powers.
Practical examples include:
• Peace building – through political, economic and practical support

• Ensuring security – under the Common Security & Defence Policy
• Maintaining good relations with the EU's immediate neighbours through
the European Neighbourhood Policy
• Development and humanitarian aid and crisis response
• Tackling climate change and human rights issues.
Composition
The European External Action Service is led by the EU foreign affairs chief – or High
Representative for Foreign Affairs & Security Policy. It is composed of:
• in Brussels – expert staff transferred from the Council of the EU,

the European Commission and EU countries' diplomatic services
• worldwide – a network of EU "embassies" (delegations).
How does EEAS work?
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The High Representative is also a Vice-President of the European Commission. She represents the
EU's foreign and security policy around the world, coordinates the work of the European Commission
on EU external relations and chairs meetings of EU Foreign, Defence and Development ministers..
The High Representative/Vice President implements EU foreign & security policy, together with
EU countries and using national and EU resources. This helps ensure consistency in foreign policy
across the bloc.
Outside its borders, the European Union is represented by a number of in-country offices –EU
delegations – which have a similar role to that of an embassy.
• European Economic and Social Committee (EESC)

Overview
• Role: Advisory body representing employers' and workers' organisations

and other interest groups.
• Members: 350 from all EU countries
• Website: European Economic and Social Committee
The European Economic and Social Committee (EESC) is an EU advisory body comprising
representatives of workers' and employers' organisations and other interest groups. It
issues opinions on EU issues to the European Commission, the Council of the EU and the European
Parliament, thus acting as a bridge between the EU's decision-making institutions and EU citizens.
What does the EESC do?

It gives the interest groups a formal say on EU legislative proposals. Its three key tasks are to:
• ensure that EU policy and law are geared to economic and social
conditions, by seeking a consensus that serves the common good
• promote a participatory EU by giving workers' and employers' organisations
and other interest groups a voice and securing dialogue with them
• promote the values of European integration, and advance the cause of
participatory democracy and civil society organisations.
Composition
EESC members represent the two sides of industry and social interest groups from across
Europe. They are nominated by national governments and appointed by the Council of the EU for
renewable 5-year terms. The number of members per country depends on that country's population.
The EESC elects its President and 2 Vice-Presidents for two-and-a-half-year terms. Members belong
to one of three groups:
• employers
• workers
• other interest groups (e.g. farmers, consumers).
How does the EESC work?
The EESC is consulted by the European Parliament, the Council of the EU and the European
Commission on a variety of subjects. It also issues opinions on its own initiative.
Members work for the EU, independently of their governments. They meet 9 times a year. Opinions
are adopted by a simple majority vote.
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Meetings are prepared by the EESC's specialised sections and the consultative commission on
industrial change. The EESC's specialist think-tanks (known as 'observatories') track the progress of
EU strategies.
The EESC keeps in touch with regional and national economic and social councilsthroughout
the EU - mainly to share information and discuss particular issues.
• European Committee of the Regions (CoR)

Overview
• Role: Advisory body representing Europe's regional and local authorities
• Website: European Committee of the Regions
The European Committee of the Regions (CoR) is an EU advisory body composed of locally and
regionally elected representatives coming from all 28 Member States. Through the CoR they are able
to share their opinion on EU legislation that directly impact regions and cities.
What does the CoR do?

The CoR gives regions and cities a formal say in EU law-making ensuring that the position and needs
of regional and local authorities are respected.
• The European Commission, the Council of the EU and the European

Parliament must consult the CoR when drawing up legislation on matters
concerning local and regional government such as health, education,
employment, social policy, economic and social cohesion, transport, energy and
climate change;
• If this is not done, the CoR can bring a case before the Court of Justice;
• Once the CoR receives a legislative proposal, it prepares and adopts
an opinion and circulates it the relevant EU institutions;
• The CoR also issues opinions on its own initiative.
Composition
The CoR members are elected representatives serving in local or regional authorities. Each
country nominates members of its choice who are appointed for a renewable five-year terms by the
Council of the EU. The number of members per country depends on the size of that country's
population.
Members from one country form the National delegation which reflects the political, geographical,
regional and local balance of their country.
Each member can also choose to be part of a political group in the CoR. Currently there are five
political groups reflecting a range of political affiliations: European People's Party (EPP),Party of
European Socialists (PES), Group of the Alliance of Liberals and Democrats for Europe
(ALDE), European Alliance Group (EA) and European Conservatives and Reformists Group (ECR).
Members can also choose to not be part of a politically party if they so wish (non-aligned).
The CoR appoints a president from among its members for a two-and-a-half-year term.
How does the CoR work?

The CoR appoints a rapporteur (one of its members) who consults stakeholders and prepares the
opinion. The text is discussed and adopted by the CoR commission in charge of the policy area
concerned. The opinion is then presented to all members in plenary session who vote to amend and
adopt it. Finally, the opinion is shared and communicated to all relevant EU institutions.
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There are up to 6 plenary sessions per year, adopting opinions that cover 50 to 80 EU legislative
projects.
The CoR and you

The CoR encourages participation at all levels, from regional and local authorities to
individual citizens. Regional and local authorities, associations, NGOs, experts and academics can
take part in online surveys, consultations and events. European Entrepreneurial Region Awards
are open to all regions with political competencies, while thesis competitions are open to academics.
The CoR has set up a number of networks to enable all EU regions and cities to exchange best
practices, work together and contribute to the EU debate on topics such as growth and employment,
fight against climate change, cross-border cooperation, development and subsidiarity.
Local and regional authorities can also sign the Charter for Multilevel Governance in Europewhich
contributes to publicising the legitimacy and responsibility of cities and regions in the
implementation of EU public policies.
• European Investment Bank (EIB)

Overview
• Role: provides funding for projects that help to achieve EU aims, both
within and outside the EU.
• Board of Directors: comprises one director per EU country, plus one
from the European Commission
• Founded in: 1958
• Website: European Investment Bank
The European Investment Bank (EIB) is jointly owned by the EU countries. It seeks to:
• boost Europe's potential in terms of jobs & growth

• support action to mitigate climate change
• promote EU policies outside the EU.
What the EIB does?
The Bank borrows money on capital markets and lends it on favourable terms to projects that
support EU objectives. About 90 % of loans are made within the EU. None of the money comes
from the EU budget.
The EIB provides 3 main types of products and services:
• Lending – about 90 % of its total financial commitment. The Bank lends to

clients of all sizes to support growth and jobs, and this support often helps to
attract other investors.
• 'Blending' - allowing clients to combine EIB financing with additional
investment.
• Advising and technical assistance - maximising value for money.
The EIB makes loans above EUR 25 million directly. Where smaller loans are involved, it
opens credit lines for financial institutions that then lend funds to creditors.
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Composition
All EU countries are shareholders in the EIB. Decisions are taken by the following bodies:
• the Board of Governors, comprising ministers (mostly finance ministers) from

all EU countries. It defines general lending policy.
• the Board of Directors, chaired by the EIB President, which comprises 28
members appointed by the EU countries and one appointed by the European
Commission. It approves lending and borrowing operations.
• the Management Committee, the Bank's executive body, which handles day-to-
day business.
The Audit Committee checks that EIB operations are conducted in a proper manner.
The Bank's departments implement management decisions.
How does the EIB work?

It makes borrowing and lending decisions, based on the merits of each project and the opportunities
offered by financial markets. Within the EU, it has specific lending priorities.Outside the EU, it
supports the EU development and cooperation policies worldwide.
As an independent body, the Bank takes its own borrowing and lending decisions. It cooperates with
other EU institutions, especially the European Commission, the European Parliament, and
the Council of the EU.
The EIB and you

If run a business or work in the public sector and you have a project that could contribute to
achieving EU policy objectives, you could be eligible for an EIB loan. To apply, contact the EIB by e-
mail, web form or through its offices, providing sufficient information to enable the Bank to judge
whether the project meets its lending objectives and has a well-developed business plan.
• European Ombudsman
Overview
• Role: Investigates complaints against EU institutions, bodies, offices &

agencies
• Location: Strasbourg (France)
• Website: European Ombudsman
The European Ombudsman investigates complaints about poor administration by EU

institutions or other EU bodies. These may be lodged by citizens or residents of EU countries or
by EU-based associations or businesses.
What does the Ombudsman do?

The Ombudsman investigates different types of poor administration, for example:
• unfair conduct
• discrimination
• abuse of power
• lack of information or refusal to provide it
• unnecessary delays
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• incorrect procedures.
How is the Ombudsman chosen?
The European Parliament elects the Ombudsman for a renewable 5-year term. This is one of its first
tasks when newly elected.
How does the Ombudsman work?

The Ombudsman's office launches investigations either in response to complaints or on its own
initiative. An impartial body, it takes no orders from any government or other organisation. It
produces an annual activity report for the European Parliament.
The Ombudsman may be able to solve your problem simply by informing the
institutionconcerned. If more is needed, every effort is made to reach an amicable solution that
will put matters right. Should this fail, the Ombudsman can make recommendations to the
institution. If these are not accepted, the Ombudsman can draw up a special report to the
European Parliament, which must then take appropriate action.
• European Data Protection Supervisor (EDPS)

Overview
• Role: Ensures that EU institutions and bodies respect people's right to

privacy when processing their personal data.
• Website: European Data Protection Supervisor
The EU institutions and bodies sometimes process citizens' personal information - in

electronic, written or visual format - in the course of their duties. Processing includes collecting,
recording, storing, retrieving, sending, blocking or erasing data. It is the task of the European Data
Protection Supervisor (EDPS) to uphold the strict privacy rules governing these activities.
What does the EDPS do?

• Supervises the EU administration's processing of personal data to ensure
compliance with privacy rules
• Advises EU institutions and bodies on all aspects of personal data processing
and related policies and legislation
• Handles complaints and conducts inquiries
• Works with the national authorities of EU countries to ensure consistency in
data protection
• Monitors new technologies that might have an impact on data protection.
How does the EDPS work?
The Supervisor and Assistant Supervisor are appointed for renewable 5-year terms of office. For
everyday operations, the EDPS comprises 2 main entities:
• Supervision and Enforcement - evaluates data protection compliance by

EU institutions and bodies.
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• Policy and Consultation - advises EU legislators on data protection issues

in various policy areas and new legislative proposals.
• Interinstitutional bodies
Computer Emergency Response Team (CERT)
The Computer Emergency Resonse Team (CERT) became fully operational in September 2012.
CERT's remit is to help manage threats to EU institutions' computer systems – supporting IT security
teams in each EU Institution and liaising with public-sector CERT counterparts in EU countries.
European School of Administration

The European School of Administration was set up on 10 February 2005. Its task is to provide
training in specific areas for members of EU staff. Its courses are open to staff of all the EU
institutions, thereby helping spread common values, promoting better understanding among EU staff
and achieving economies of scale. It works in close cooperation with the training departments of all
the institutions to avoid any duplication of effort.
European Personnel Selection Office

The European Personnel Selection Office (EPSO) became operational in January 2003. Its task is to
set competitive examinations for recruiting staff to work in all the EU institutions. This is more
efficient than having each institution organise its own recruitment competitions. EPSO’s annual
budget of roughly €21 million is 11% less than what the EU institutions used to spend on recruitment.
Publications Office
The full name of this body is the Publications Office of the European Union. It acts as the publishing
house for the EU institutions, producing and distributing all official European Union publications, on
paper and in digital form.
A unique institutional set-up

In the EU's unique institutional set-up:
• the EU's broad priorities are set by the European Council, which brings together national and EU-
level leaders
• directly elected MEPs represent European citizens in the European Parliament

• the interests of the EU as a whole are promoted by the European Commission, whose members are
appointed by national governments
• governments defend their own country's national interests in the Council of the European Union.
Setting the agenda

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The European Council sets the EU's overall political direction – but has no powers to pass laws. Led
by its President - currently Donald Tusk - and comprising national heads of state or government and
the President of the Commission, it meets for a few days at a time at least twice every 6 months.
Law-making
There are 3 main institutions involved in EU legislation:
• the European Parliament, which represents the EU’s citizens and is directly elected by them;
• the Council of the European Union, which represents the governments of the individual member
countries. The Presidency of the Council is shared by the member states on a rotating basis.
• the European Commission, which represents the interests of the Union as a whole.
Together, these three institutions produce through the "Ordinary Legislative Procedure" (ex "co-
decision") the policies and laws that apply throughout the EU. In principle, the Commission proposes
new laws, and the Parliament and Council adopt them. The Commission and the member countries
then implement them, and the Commission ensures that the laws are properly applied and
implemented.
Decision-making in the EU - more on EU law-making procedures
List of presidencies of the Council of the EU 2014-2020
Other EU institutions and bodies

Two other institutions play vital roles:
• the Court of Justice of the EU upholds the rule of European law

• the Court of Auditors checks the financing of the EU's activities.
The powers and responsibilities of all of these institutions are laid down in the Treaties, which are the
foundation of everything the EU does. They also lay down the rules and procedures that the EU
institutions must follow. The Treaties are agreed by the presidents and/or prime ministers of all the
EU countries, and ratified by their parliaments.
The EU has a number of other institutions and interinstitutional bodies that play specialised roles:
• the European Central Bank is responsible for European monetary policy

• the European External Action Service (EEAS) assists the High Representative of the Union for
Foreign Affairs and Security Policy, currently Federica Mogherini. She chairs the Foreign Affairs
Council and conducts the common foreign and security policy, also ensuring the consistency and
coordination of the EU's external action.
• the European Economic and Social Committee represents civil society, employers and employees
• the European Committee of the Regions represents regional and local authorities
• the European Investment Bank finances EU investment projects and helps small businesses through
the European Investment Fund
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• the European Ombudsman investigates complaints about maladministration by EU institutions and

bodies
• the European Data Protection Supervisor safeguards the privacy of people’s personal data
• the Publications Office publishes information about the EU

• the European Personnel Selection Office recruits staff for the EU institutions and other bodies
• the European School of Administration provides training in specific areas for members of EU staff
• a host of specialised agencies and decentralised bodies handle a range of technical, scientific and
management tasks
ecentralised EU agencies play an important role in the European Union (EU). They help make
Europe more competitive and a better place to live and work, thus serving the interests of EU
residents as a whole.
What are the decentralised agencies?

These agencies have been set up by the EU to perform technical and scientific tasks that help the
EU institutions implement policies and take decisions. They are spread across the EU.
What do they do?

They work on issues and problems affecting the everyday lives of the 450m people living in the EU.
They have a major impact, providing EU institutions and countries with specialised knowledge in
areas as diverse as:
• the food we eat

• our medicines
• the chemicals we come into contact with

• our education
• the quality of our working lives & environment
• justice
• transport safety
• security
• our fundamental rights
• knowledge
• provide services to members of the public and industry.
Agencies under Common Security and Defence Policy

Agencies have been set up to carry out very specific technical, scientific and management tasks within
the framework of European Union’s Common Security and Defence Policy.
Executive agencies
Executive agencies are set up for a limited period of time by the European Commission to manage
specific tasks related to EU programmes.
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EURATOM agencies and bodies

These were created to support the aims of the European Atomic Energy Community Treaty
(EURATOM), which are to: coordinate national nuclear research programmes, for peaceful purposes
provide knowledge, infrastructure and funding for nuclear energy ensure sufficient and secure
supplies of nuclear energy
Other organisations
Other organisations include bodies set up as part of EU programmes and public-private partnerships
between the European Commission and the industry.
B ) MAIN POLICIES
o
Agriculture
Aims of the common agricultural policy

Launched in 1962, the EU’s common agricultural policy (CAP) is a partnership between
agriculture and society, and between Europe and its farmers. It aims to
• support farmers and improve agricultural productivity, ensuring a stable supply of

affordable food
• safeguard European Union (EU) farmers to make a reasonable living
• help tackle climate change and the sustainable management of natural resources
• maintain rural areas and landscapes across the EU
• keep the rural economy alive by promoting jobs in farming, agri-foods industries and
associated sectors
The CAP is a common policy for all the countries of the European Union. It is managed and
funded at European level from the resources of the EU’s budget.
Find out about CAP in your country by clicking on the map or follow the link below.
The CAP in your country
The CAP in practice
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Farming is unlike most other businesses, as the following special considerations apply
• despite the importance of food production, farmers’ income is around 40% lower
compared to non-agricultural income
• agriculture depends more on the weather and the climate than many other sectors
• there is an inevitable time gap between consumer demand and farmers being able to
supply – growing more wheat or producing more milk inevitably takes time
While being cost-effective, farmers should work in a sustainable and environmentally friendly
manner, and maintain our soils and biodiversity.
Business uncertainties and the environmental impact of farming justify the significant role that
the public sector plays for our farmers. The CAP takes action with
• income support through direct payments ensures income stability, and remunerates
farmers for environmentally friendly farming and delivering public goods not normally
paid for by the markets, such as taking care of the countryside
• market measures to deal with difficult market situations such as a sudden drop in
demand due to a health scare, or a fall in prices as a result of a temporary oversupply on
the market
• rural development measures with national and regional programmes to address the
specific needs and challenges facing rural areas
CAP financing
The level of support for EU farmers from the overall EU budget reflects the many variables
involved in ensuring continued access to high quality food, which includes functions such as
income support to farmers, climate change action, and maintaining vibrant rural communities.
The CAP is financed through two funds as part of the EU budget
• the European Agricultural Fund (EAGF) provides direct support and funds market
measures
• the European Agricultural Fund for Rural Development (EAFRD) finances rural
development
Payments are managed at the national level by each European Union country. Information
about the recipients of CAP payments is published by each country, in accordance with EU
transparency rules.
Related information
EU annual budget life-cycle
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EU expenditure and revenue 2014-2020
The purpose and benefits of the CAP

The CAP defines the conditions that will allow farmers to fulfil their functions in society in the
following ways.
Produce food
• there are around 11 million farms in the EU and 22 million people work regularly in the
sector. They provide an impressive variety of abundant, affordable, safe and good
quality products
• the EU is known throughout the world for its food and culinary traditions and is one of
the world’s leading producers and net exporter of agri-food products. Due to its
exceptional agricultural resources the EU could and should play a key role in ensuring
food security of the world at large.
Rural community development
• within our countryside and its precious natural resources, there are many jobs linked to
farming. Farmers need machinery, buildings, fuel, fertilisers and healthcare for their
animals, also known as ‘upstream’ sectors
• other people are busy in ‘downstream’ operations – such as preparing, processing, and
packaging food, as well as in food storage, transport and retailing. The farming and food
sectors together provide nearly 44 million jobs in the EU
• to operate efficiently and remain modern and productive, farmers, upstream and
downstream sectors need ready access to the latest information on agricultural issues,
farming methods and market developments. During the period 2014-20, the CAP is
expected to provide high-speed technologies, improved internet services and
infrastructure to 18 million rural citizens – the equivalent of 6.4 % of the EU’s rural
population
Environmentally sustainable farming
• farmers have a double challenge – to produce food whilst simultaneously protecting

nature and safeguarding biodiversity. Using natural resources prudently is essential for
our food production and for our quality of life – today, tomorrow and for future
generations
• Business
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o Competition
Preserving and promoting fair competition practice

The EU's rules on competition are designed to ensure fair and equal conditions for businesses, while
leaving space for innovation, unified standards, and the development of small businesses.
The European Commission monitors and investigates anti-competition practices, mergers and state
aid to ensure a level playing field for EU businesses, while guaranteeing choice and fair pricing for
consumers.
• Information on EU competition rules
• Summaries of EU legislation on competition
Large firms are barred from using their bargaining power to impose conditions that would make it
difficult for their suppliers or customers to do business with their competitors. The Commission can
fine companies for this practice, because it leads to higher prices and/or less choice for consumers.
• EU competition cases
The Commission's powers to investigate and halt violations of EU competition rules are subject to a
number of internal checks and balances, as well as full judicial review by the European Courts.
The EU is also at the forefront of international cooperation in the competition field to promote and
propose best practice. It was a founding member of the International competition network (ICN), and
partners with global and national bodies to assess possible competition breaches.
Competition rules in the EU

The EU has strict rules protecting free competition. Under these rules,
certain practices are prohibited.
If you infringe the EU's competition rules, you could end up being fined as
much as 10% of your annual worldwide turnover. In some EU
countries individual managers of offending firms may face serious
penalties, including prison.
EU competition rules apply directly in all EU countries - the courts in
your country will uphold them. These rules apply not only to businesses but
to all organisations engaged in economic activity (such as trade
associations, industry groupings, etc).
You can read about some examples of EU competition cases on the DG
Competition's portal.
Illegal contacts and agreements
These agreements are known as cartels. They are forbidden because they
restrict competition. They can take many forms, and need not be officially
approved by the companies involved. The most common examples of these
practices are:
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▪ Price fixing
▪ Market sharing
▪ Agreement on customer allocation
▪ Agreement on production limitation
▪ Distribution agreements between suppliers and re-sellers where, for
example, the price charged to customers is imposed by the supplier
All agreements and exchanges of information between you and your competitors
that reduce your strategic uncertainty in the market (around your production
costs, turnover, capacity, marketing plans, etc.) can be seen as anti-competitive.
Even disclosing this kind of strategic information unilaterally via mail,
phone or meetings could be seen as infringing this rule.
To be on the safe side:
▪ Do not fix prices or other trading conditions
▪ Do not limit production
▪ Do not share markets
▪ Do not exchange strategic information about your company
Some agreements are not prohibited - if they can be justified as benefiting
consumers and the economy as a whole. One example is agreements on research
& development and technology transfer. These cases are covered by the Block
Exemption Regulations .
Abuse of a dominant position
If your company has a large market share, it holds a dominant position and
must take particular care not to:
▪ charge unreasonably high prices which would exploit customers
▪ charge unrealistically low prices which may drive competitors out of the
market
▪ discriminate between customers
▪ force certain trading conditions on your business partners
o Enterprise
Supporting Europe’s business and industry future

EU policy helps make EU industry and business more competitive and promotes job creation and
economic growth by creating a business-friendly environment.
• Summaries of EU legislation on business and industry
With globalisation and stronger competition from emerging countries, Europe’s long-term economic
prosperity will depend on the strength of its industrial base, not on services and banks alone.
Research and innovation plays a key role in developing the technologies and approaches to ensure
Europe’s manufacturing future.
• EU industrial policy
• Enabling technologies for industry
A suite of EU programmes help small and medium-sized enterprises (SMEs) to access finance and
markets, and support entrepreneurship, business creation, internationalisation and growth.
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• EU support for small and medium-sized enterprises
The EU is working to remove the remaining barriers to trade and to avoid creating new ones by
promoting a business and consumer-friendly EU market, based on simple, transparent and
consistent rules and standards.
• A practical guide to doing business in Europe
o Single market
A single internal market without borders

The EU aims to enable EU citizens to study, live, shop, work and retire in any EU country and enjoy
products from all over Europe. To do this, it ensures free movement of goods, services, capital and
persons in a single EU internal market. By removing technical, legal and bureaucratic barriers, the
EU also allows citizens to trade and do business freely.
• Summaries of EU legislation on the single market
The EU is also building a capital markets union, to make it easier for small businesses to raise money
and to make Europe a more attractive place to invest. In addition, the digital single market will
digitalise the EU's single market freedoms, with EU-wide rules for telecommunications services,
copyright and data protection.
• Capital markets union
• Digital single market
However, some barriers within the single market remain, and the EU is working to further
harmonise:
• fragmented national tax systems
• separate national markets for financial services, energy and transport
• varied e-commerce rules, standards and practices between EU countries
• complicated rules on the recognition of vocational qualifications
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o Trade
Towards open and fair world-wide trade

The European Union is one of the most outward-oriented economies in the world. It is also the
world’s largest single market area. Free trade among its members was one of the EU's founding
principles, and it is committed to opening up world trade as well.
From 1999 to 2010, EU foreign trade doubled and now accounts for over 30% of the EU’s gross
domestic product (GDP). The EU is responsible for the trade policy of the member countries and
negotiates agreements for them. Speaking as one voice, the EU carries more weight in international
trade negotiations than each individual member would.
• EU world trade statistics
• Summaries of EU legislation on trade
The EU actively engages with countries or regional groupings to negotiate trade agreements. These
agreements grant mutually-beneficial access to the markets of both the EU and the countries
concerned. EU companies can grow their business, and can also more easily import the raw materials
they use to make their products.
Each agreement is unique and can include tariff reductions, rules on matters such as intellectual
property or sustainable development, or clauses on human rights. The EU also gets input from the
public, businesses, and non-government bodies when negotiating trade agreements or rules.
• Trade negotiations and agreements
The EU supports and defends EU industry and business by working to remove trade barriers so that
European exporters gain fair conditions and access to other markets. At the same time, the EU
supports foreign companies with practical information on how to access the EU market.
• Exporting from the EU
• Importing into the EU
The EU also works with the World Trade Organization (WTO) to help set global trade rules and
remove obstacles to trade between WTO members.
• The EU and WTO
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• Development and humanitarian aid
o Development and Cooperation
Eradicating poverty and achieving sustainable

development
Together, the EU institutions and countries are the world’s leading donor of development assistance
and cooperation. The EU proposes legislation and policies to promote good governance and human
and economic development, such as fighting hunger and preserving natural resources.
• Summaries of EU legislation on development and cooperation
Responding to the United Nation’s Sustainable Development Goals, EU institutions work together
and provide funding to address the following five aspects of sustainable development:
• People: End poverty and hunger in all forms and ensure dignity and equality
• Planet: Protect future generations from environmental destruction and resource depletion
• Prosperity: Ensure prosperous and fulfilling lives in harmony with nature
• Peace: Create peaceful, just and inclusive societies
• Partnership: Implement development work through global partnership
• EU actions per sector
The EU cooperates with 150 partner countries in Africa, Latin America and the Caribbean, Asia and
the Pacific, as well as civil society and international organisations. In addition to providing financial
aid and engaging in dialogues with partner countries, the EU also conducts research and evaluation
to ensure that aid is used effectively.
• EU actions per geographical region
o Humanitarian aid and Civil Protection
European humanitarian values in action

The European Union provides assistance to countries and populations, both within Europe and
abroad, when major disasters or humanitarian emergencies occur.
• Summaries of EU legislation on humanitarian aid and civil protection
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Together, the EU countries are the world's leading donor of humanitarian aid, helping millions of
people worldwide each year. This aid accounts for 1% of the EU's total annual budget – around €4
per EU citizen.
EU action is guided by the principles of humanity, neutrality, impartiality and independence. Aid is
channelled through 200+ international and local partner organisations and agencies, and supported
by thousands of European volunteers.
Any European citizen or long-term resident in an EU Member State can take part to an EU aid
volunteer programme.
• EU humanitarian aid principles and actions
• EU aid volunteering vacancies
Through the EU Civil Protection Mechanism, the EU, together with a number of other European
countries, plays a key role in coordinating responses to crises in Europe and worldwide. Existing and
potential crises are monitored around the clock and the participating countries also cooperate on risk
assessment, disaster prevention preparedness and planning.
Emergency relief can take the form of items such as food, shelter or equipment, deployment of
specially-equipped teams, or assessment and coordination by experts sent to the field. Relief teams,
experts and equipment from participating countries are kept on standby to provide rapid EU
responses all over the world.
• EU civil protection principles and actions
o
Human rights
Promoting and protecting human rights

There are two main streams of human rights policy and action within the European Union. One is to
protect the fundamental human rights for EU citizens, and the other is to promote human rights
worldwide.
• Summaries of EU legislation on human rights

The EU Charter of Fundamental Rights guarantees EU citizens’ rights. The Charter lays down the
fundamental rights that are binding upon EU institutions and bodies. It also applies to national
governments when they are implementing EU law.
• EU Charter of Fundamental Rights

• Fundamental rights for EU citizens
The European Union is based on a strong commitment to promoting and protecting human rights,
democracy and the rule of law worldwide. Human rights are at the heart of EU relations with other
countries and regions.
EU policy includes:
• promoting the rights of women, children, minorities and displaced persons

• opposing the death penalty, torture, human trafficking and discrimination
• defending civil, political, economic, social and cultural rights
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• defending human rights through active partnership with partner countries,

international and regional organisations, and groups and associations at all levels of
society
• inclusion of human rights clauses in all agreements on trade or cooperation with non-
EU countries
• EU human rights actions

• Human rights and democracy
• Economy and finance
o Budget
The annual EU budget is €145 bn (2015 figures) – a large sum in absolute terms, but only
about 1%of the wealth generated by EU economies every year.
The budget is subject to limits established by the long-term budget.
The EU budget is used in areas where it makes sense to pool resources for the good of Europe as a
whole, such as:
• improving transport, energy and communications links between EU countries
• protecting the environment Europe-wide
• making the European economy more competitive globally
• helping European scientists and researchers join forces across borders.
EU budget in figures
Who decides how the money is spent?

The annual budget – subject to the ceilings set out in the long-term budget, is
decided democraticallyas follows:
• The European Commission proposes a budget.
• The national governments (acting through the EU Council), and the directly elected European
Parliament approve the proposal. This becomes next year's budget.
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What happens after the budget has been spent?
• The Commission tells the European Parliament and the Council how it was spent.
• The European Court of Auditors also scrutinises spending.
• If the money has been spent in accordance with the rules, the European Parliament gives its
approval.
What is the money spent on?

The lion's share of the EU budget supports growth and jobs. Another significant share goes on
agriculture and rural development.
Top expenditure areas (2015)
46% – smart and inclusive growth in the EU, subdivided into:
• 34% – helping underdeveloped EU regions and disadvantaged sections of society
• 12% – making European firms more competitive.
41% – producing safe and secure food supplies, innovative farming and efficient and sustainable use
of land and forests.
How does the EU budget break down by budget heading? (2015 figures)
Within the EU
Some programmes & budgets in 2015:
• Horizon 2020 – research & innovation programme (€10 bn)
• Youth Employment Initiative (€1.4 bn)
• COSME – programme for small businesses (€0.3 bn)
• Connecting Europe Facility – transport, energy & digital networks (€3.4 bn)
• Erasmus+ – education, training, youth & sport (€1.6 bn)
• Life – environment programme (€0.4 bn)
Outside the EU
As a major global player, the EU has certain obligations to the outside world:
• promoting economic & social development
• keeping the peace
• helping victims of disasters & conflict.
Non-EU countries receiving aid from the EU budget fall into 3 main groups:
• Parts of the developing world where certain EU countries have strong historical ties (especially
Africa, the Caribbean and the Pacific).
• Neighbouring countries – in eastern Europe, North Africa and the Middle East.
• Countries preparing to join the EU (candidates or potential candidates).
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Examples of programmes in 2015:
• Development cooperation instrument (€2.4 bn)
• European neighbourhood instrument (€2 bn)
• Instrument for pre-accession assistance (€1.6 bn)
Who benefits from the EU budget?

About 94% of the budget funds real activities on the ground in EU countries and beyond. All
508 million Europeans benefit in some way from the budget. It helps millions of students, thousands
of researchers, and many cities, regions and NGOs.
How much is spent on running costs?

About 6% of the budget. This includes administrative costs for all the institutions (mainly the
European Commission, Parliament and EU Council), including the translators and interpreters
needed to make information available in all of the EU’s official languages.
As part of a reform package, the largest institution, the Commission, is cutting staff by 1% every year,
while also increasing working hours. Ultimately, staff will be cut by 5%.
o Economic and monetary affairs
EU countries coordinate their national economic policies so they can act together when faced with
challenges such as economic and financial crises. This coordination has been pushed even further by
the 20 countries that have adopted the euro as their currency ( update January 2023 ).
All EU member countries (whether inside or outside the euro) are part of the economic & monetary
union (EMU), a framework for economic cooperation designed to promote job creation and
sustainable growth, as well as to coordinate our response to global economic and financial challenges.
Coordinated response to the 2008 crisis

Since the financial and economic crisis began in October 2008, national governments, the European
Central Bank (ECB) and the Commission have been working together to:
• restore financial stability and create the right conditions for growth and job creation –
coordinating supervision and intervention and supporting banks
• protect savings – by increasing national guarantees for bank accounts to a minimum of €100,000
per customer, per bank
• maintain a flow of affordable credit for businesses and households
• put in place a better EU system of economic and financial governance
To forestall major disruptions to the banking system, a number of EU governments came to the
rescue of their banks with urgent support on an unprecedented scale. Between 2008 and 2011, €1.6
trillion - equivalent to 13 % of the EU’s annual GDP - was injected into the system through
guarantees, or in the form of direct capital.
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To preserve the EU's financial stability and resolve tensions in sovereign debt markets in the euro
area, the EU also set up a safety net for euro area members in difficulty: the European Stability
Mechanism (ESM). Replacing the temporary tools that had existed before, this is the world's largest
multilateral financial institution, with an effective lending capacity of up to €500bn.
Between 2011 and 2013, the EU also introduced new, stronger rules (including an international
treaty) to keep a tighter check on public debt and deficits – making sure governments don’t spend
beyond their means.
These built on the EU’s main tool for safeguarding economic stability and fiscal discipline,
the Stability and Growth Pact (SGP), comprehensively strengthening its application by:
• placing greater emphasis on reducing high levels of government debt
• tweaking the Excessive Deficit Procedure so it can be triggered not only by a deficit in a given year
but also by deeper, underlying developments in government debt.
• setting up an annual cycle of economic policy coordination, led by the Commission. Every year it
undertakes a detailed analysis of EU governments' economic reform plans and gives them
recommendations for the next 12-18 months.
• Stricter enforcement of fiscal rules, which include meaningful penalties for euro area countries who
breach fiscal rules.
• new arrangements for monitoring risky economic imbalances – such as asset bubbles (in house
prices, shares, etc.) and weakening competitiveness – and addressing them before they threaten the
economic stability of a country, or indeed the whole euro area or EU.
More on the EU's response to the 2008 crisis.
The benefits of the euro ( 20 countries, update

January 2023)
.
Used by almost 340 million EU citizens, the single currency benefits everybody:
• people no longer need to change money when travelling or doing business within the euro area,
saving time and transaction costs.
• it costs much less (or nothing at all) to make cross-border payments.
• consumers and businesses can compare prices more easily, which encourages businesses charging
higher prices to bring them down.
Being in the euro area guarantees stable prices. The ECB sets key interest rates at levels designed to
keep inflation close to, but below, 2%. It also manages a portion of the euro area’s foreign exchange
reserves and can intervene in foreign exchange markets to influence the exchange rate of the euro.
The combined size and strength of the euro area also creates a stronger and more stable currency that
is better able to shield its members from external shocks and currency market turbulence, than
individual countries alone could achieve.
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How EU countries join the euro area
All EU countries are expected to adopt the euro when their economies are ready – except
Denmark and the UK, who have an official opt-out.
To join the euro area, a country's currency must have had a stable exchange rate for 2 years. There
are other strict conditions as regards:
• interest rates
• budget deficits
• level of government debt
• inflation rates
Cheaper cross-border payments

Not only does the ECB keep prices stable, it also ensures that euro transfers to recipients in other
euro area countries are as cheap as possible for banks and their customers.
For very large sums of money, the ECB and national central banks operate a real-time payments
system known as TARGET2. With the launch of TARGET2-Securities in June 2015, securities
transactions within Europe will also be settled (more safely and efficiently) on a single platform
operated by the Eurosystem (the central banks of the euro area and the ECB).
The ECB and Commission have also been working to extend the benefits of more efficient and
cheaper payments to the whole continent – through a single euro payments area (SEPA).
In practice this means that in 34 European countries all euro payments (bank transfers, direct
debit, card, etc.) are treated exactly the same, regardless of whether the payment is between
parties in the same or different countries.
o Fraud prevention
Cigarette smuggling... counterfeiting of euro coins... evasion of import duties on shoes and clothes...
subsidies for growing oranges on farms that don't exist — all are examples of fraud that cost
European taxpayers money.
The main EU body for combating these activities is the European Anti-Fraud Office (OLAF).
Report suspected fraud to OLAF
What does OLAF do?

• investigate fraud, corruption and other illegal activities
• detect and investigate serious misconduct by EU staff
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• help the European Commission formulate & implement policies to prevent and detect fraud.
Investigations
1. Investigations can involve interviews and inspection of premises - including outside the EU.
OLAF also coordinates inspections by national anti-fraud agencies.
2. After an investigation, OLAF then recommends action to the EU institutions and national
governments concerned: criminal investigations, prosecution, financial recoveries or other
disciplinary measures.
3. OLAF also monitors how these recommendations are implemented.
Customs operations
National customs authorities, both inside and outside the EU, carry out regular joint operations with
OLAF (and other EU agencies) to stop smuggling and fraud in certain high-risk areas and
onidentified routes.
One example was in October 2014, when over 1.2 million counterfeit goods and 130 million
cigarettes were seized in an international customs operation. The operation, code-named REPLICA,
targeted the import of counterfeit goods including cigarettes, perfumes, car and bicycle spare parts,
toys, fashion accessories and electric devices by sea.
Key issues
Cigarette smuggling
Avoidance of excise and customs duties on cigarettes - generally by smuggling - is one of the major
types of fraud in the EU. OLAF receives notifications from its partner agencies about suspicious
movements of cargo vessels and cross-checks national intelligence to produce insights into smuggling
methods.
For example, over the period 2012-14, joint OLAF operations tracking vessels with national agencies
led to the seizure of:
• 9 ships containing some 215 million cigarettes (evading duties worth €43m).
• containers holding 93 million cigarettes (evading duties worth €15m).
Fake euros
Counterfeiting of the euro has caused financial damage of at least €500m since the currency was
introduced in 2002.
The EU tackles this through:
• legislation - to coordinate action by national authorities, to maintain the correct authentication

measures for coins and banknotes, and ensure adequate penalties for counterfeiters under national
law.
34
• training – funded through the Pericles programme, for national agencies, banks, law enforcement,
judicial authorities and others involved in combating euro counterfeiting - both in the EU and
outside.
• analysis of counterfeit coins by the European Technical & Scientific Centre (most commonly the €2
coin).
• joint action – through meetings of experts from national agencies.
More concerted EU action?

Action to combat fraud in the EU is still hampered by differences in rules and practices in
member countries - which results in differing degrees of protection for public money .
To address these issues, the EU is currently debating a new Directive to protect EU financial interests
through criminal law , which would further align the definitions of offences and penalties.
This directive would provide the legal basis for the operation of the proposed European Public
Prosecutor's Office (EPPO), which is currently being discussed by EU governments.
If established, the EPPO should improve the investigation and prosecution of offences affecting the
EU budget. The idea is to provide EU-wide enforcement - given the complexity of many types of
large-scale fraud, which often involve more than a single country and so go beyond national
jurisdiction.
• Employment and social affairs
o Employment and social affairs
Technological advances, globalisation and changing demographics continue to impact the ways
Europeans live and work. The EU is actively developing policies and legislative proposals to meet
these challenges.
• Summaries of EU legislation on employment and social affairs
• Overview of EU policies on employment and social affairs
Through the European pillar of social rights, the EU works to safeguard the rights of citizens by
ensuring:
• Equal opportunities and access to the labour market
• Fair working conditions
• Social protection and inclusion
35
EU funding helps public and private organisations implement and improve employment and social
policy, and finance projects to support their citizens of today and tomorrow.
• Funding for employment and social affairs projects
EU employment legislation guarantees minimum levels of protection that apply to everyone living
and working in the EU. Specific EU rules also aim to make it easy for EU citizens to live and work in
other EU countries, while protecting their social security rights, such as health insurance and
benefits.
• Living and working in other EU countries
• Environment and energy
o Climate action
o keep climate change below dangerous levels, the international community agrees that the average
global temperature must not rise more than 2°C above the pre-industrial temperature. The EU is
therefore working hard to:
• cut its member countries' emissions

• encourage other major polluters to take strong action
• address the unavoidable impacts of a changing climate.
Targets drive green growth

Tackling climate change now can save human and economic costs in the longer term. Growing
demand for clean technologies also offers opportunities to modernise Europe's economy, creating
'green' growth and jobs.
For 2020 the EU has set itself binding climate and energy goals designed to:
• cut EU greenhouse gas emissions to at least 20% below 1990 levels

• increase to 20% the share of EU energy consumption coming from renewable sources
• improve energy efficiency to reduce the amount of primary energy used
by 20% compared with projected levels.
The EU has offered to scale up its emissions cut from 20% to 30% by 2020 if other major economies
commit themselves to taking their fair share of global reduction efforts.
EU leaders agreed in October 2014 on new climate and energy targets for 2030. They include:
• 40% cuts (at least) in greenhouse emissions compared to 1990 levels

• 27% - minimum share of renewable energy
• 27% - minimum improvement in energy efficiency.
36
In the longer term, much deeper cuts in world emissions will be needed to prevent dangerous climate
change. The EU is committed to reducing its emissions by 80-95% of 1990 levels by 2050 as part
of a collective effort by developed countries to do likewise.
The European Commission describes the most cost-effective ways of achieving reductions on this
scale in its 'Roadmap for a low-carbon economy in 2050'.
Emissions trading: reducing emissions at least cost

The Emissions Trading Scheme - the cornerstone of the EU’s climate change strategy since 2005 - is
gradually bringing down emissions from industry at least cost.
The cap on emissions from energy-intensive industries (e.g. power generation, steel, cement) is
lowered annually. Companies surrender allowances for each tonne of CO2 they emit - a permanent
incentive to minimise emissions. There are sectors that receive some allowances free of charge, but
increasingly firms must buy them at auction or on the carbon market.
Preparing for unavoidable climate change

Even if all emissions stopped today, those already in the atmosphere would continue changing the
climate for decades to come. We have no choice but to adapt to climate change. The action
needed includes:
• modifying building regulations to take account of future climate conditions

• building flood defences
• developing drought-tolerant crops.
The Commission has set out a strategy to promote and facilitate adaptation across the EU.
o Energy
Investing in a sustainable energy future for Europe

The EU is actively promoting Europe’s transition to a low-carbon society, and is updating its rules in
order to facilitate the necessary private and public investment in the clean energy transition. This
should not only be good for the planet, but also good for the economy and good for consumers.
• Summaries of EU legislation on energy
The low carbon transition aims to create a sustainable energy sector which stimulates growth,
innovation, and jobs whilst improving quality of life, increasing choice, reinforcing consumer rights,
and ultimately providing savings in household bills.
A streamlined and coordinated EU approach ensures a genuinely continental impact in the fight
against climate change. Moves to encourage renewables and improve energy efficiency are central to
reducing Europe’s greenhouse gas emissions and meeting Paris Agreement commitments.
• Renewable energy
• Energy label and ecodesign
Through the European energy union, the EU is ensuring there is a greater coherence in all policy
areas to meet the broad objectives of creating a reliable, affordable and sustainable energy system.
37
The EU also provides various funding opportunities and lending schemes to help companies and
regions successfully implement energy projects.
• Energy funding opportunities
On the international stage, the EU plays an important role, working together with other countries,
regions and international organisations to tackle energy problems and ensure a reliable, competitive
energy market within Europe.
o Environment
Towards a greener and more sustainable Europe

EU citizens benefit from some of the highest environmental standards in the world. The EU and
national governments have set clear objectives to guide European environment policy until 2020 and
a vision beyond that, of where to be by 2050, with the support of dedicated research programmes,
legislation and funding:
• protect, conserve and enhance the EU’s natural capital
• turn the EU into a resource-efficient, green, and competitive low-carbon economy
• safeguard EU citizens from environment-related pressures and risks to health and wellbeing
• EU environmental priorities
• Summaries of EU environmental legislation
Work is ongoing on many fronts to protect the EU’s endangered species and natural areas, ensure
safe drinking and bathing water improve air quality and waste management, and reduce the effects of
harmful chemicals.
• Statistics on EU environmental issues
Environmental protection and innovation help to create new business and employment
opportunities, which stimulate further investment. Green growth is at the heart of EU policy to
ensure that Europe’s economic growth is environmentally sustainable. The EU also plays a key role in
promoting sustainable development at a global level.
38
o
Justice and Home Affairs
Protection, rights and justice for EU citizens

EU citizens enjoy many freedoms and protections, including personal, civil, political, economic and
social rights, personal data protection, anti-discrimination laws, and borderless travel through most
EU countries.
Every EU citizen enjoys the same fundamental rights based on the values of equality, non-
discrimination, inclusion, human dignity, freedom and democracy. These values are fortified and
protected by the rule of law, spelled out in the EU Treaties and the Charter of Fundamental Rights.
EU citizens have the right to live, work, study and get married in other EU countries. The EU works
to keep Europeans' personal data safe and empowers them as consumers.
• Justice and Fundamental rights

• Schengen borderless travel area
• Data Protection - Factsheets
Citizens have legal protection in any EU country, and criminals can be pursued across borders and
repatriated, thanks to the European arrest warrant. Judicial authorities cooperate through the
European Union's Judicial Cooperation Unit (Eurojust) to ensure legal decisions made in one EU
country are recognised and implemented in any other EU country.
• Summaries of EU legislation on justice and home affairs

The Court of Justice of the European Union ensures EU law is applied in the same way in all EU
countries, and settles legal disputes between national governments and EU institutions. In certain
circumstances, it can also be used by citizens, companies or organisations to take action against an
EU institution which may have infringed their rights.
The EU works to improve internal security by cooperating on law enforcement, border management,
civil protection and disaster management. This includes taking action against organised criminals
and helping national police forces work better together through the European Police Office
(EUROPOL).
EU countries are also working to develop a coherent EU immigration policy that takes advantage of
the opportunities offered by legal immigration, while tackling the challenges of irregular
immigration. Work is ongoing to improve security through better external border controls, while
making it easier for those with a right to enter the EU to do so.
• European Agenda on Migration – Factsheets

• European Agenda on Security – Factsheets
o Digital economy & society
Europe's digital revolution – from smartphones to ultra-high-speed internet, the app

economy and research into future and emerging technologies – is driven largely by
technological and market innovation. The EU has played a vital supporting role by:
• defining European telecoms rules
39
• standing up for consumers
• setting technical standards
• supporting research & innovation.
A consumer-friendly digital single market

The internet and digital technologies are transforming our world. Completing the digital single
marketwill:
• boost competitive growth
• transform Europe’s industrial sector
• create new products & services for this expanding market.
Existing online barriers restrict access to goods and services, as:
• only 15% of people shop online from another EU country
• Internet companies & start-ups cannot make full use of online opportunities
• only 7% of small businesses sell goods or services across the EU's borders
• businesses & governments are not benefiting from digital tools as much as they might.
The idea behind the digital single market is to move from 28 national markets to a single one. A fully
functional digital single market could contribute €415 bn per year to our economy, creating hundreds
of thousands of new jobs.
The Digital Single Market Strategy, which includes 16 initiatives ranging from copyright to cyber
security runs up to the end of 2016. It is based on:
• better access for consumers & businesses throughout Europe to digital goods & services
• creating the right conditions & a level playing field for digital networks & innovative services to
flourish
• maximising the growth potential of the digital economy.
Driving economic growth

Digital technologies are central to Europe's economic growth. Yet while 250 m Europeans use the
internet daily, 18% have never used it at all.
The digital economy is growing 7 times as fast as the rest of the economy. Much of this growth has
been fuelled by broadband internet. Today's high-speed broadband networks are having just as great
an impact as electricity and transport networks a century ago. They are also paving the way for
innovative services such as eHealth, smart cities and data-driven manufacturing.
The European Commission is encouraging the spread of high-speed broadband through:
• new cost reduction rules
• a Recommendation on Next Generation Access networks
40
• revised state aid guidelines for broadband.
As part of the digital single market strategy, the Commission will also overhaul EU telecoms rules to
create incentives for investment in high-speed connectivity. The information and communication
technology (ICT) sector represents nearly 5% of the EU economy and generates a quarter of total
business expenditure. Investments in ICT account for half of all European productivity growth.
Regulating the market

The EU's regulatory role has developed to keep pace with new technologies and market trends:
• introducing rules covering all electronic communications networks & services
• ensuring basic broadband for everyone in the EU
• encouraging competition by preventing the old national telecoms monopolies from maintaining a
dominant position with respect to services like high-speed internet access.
The rules are applied independently by the authorities in each EU country, with national regulators
coordinating their policies at EU level through the Body of European Regulators for Electronic
Communications (BEREC).
41
COMPETENCES
THE TREATY ON THE FUNCTIONING OF THE EUROPEAN UNION
EXCLUSIVE COMPETENCES
Article 3
1. The Union shall have exclusive competence in the following areas:
(a) customs union;
(b) the establishing of the competition rules necessary for the functioning of the
internal market;
(c) monetary policy for the Member States whose currency is the euro;
(d) the conservation of marine biological resources under the common fisheries policy;
(e) common commercial policy.
2. The Union shall also have exclusive competence for the conclusion of an
international agreement when its conclusion is provided for in a legislative act of the
Union or is necessary to enable the Union to exercise its internal competence, or in so
far as its conclusion may affect common rules or alter their scope.
SHARE COMPETENCES
Article 4
1. The Union shall share competence with the Member States where the Treaties confer
on it a competence which does not relate to the areas referred to in Articles 3 and 6.
2. Shared competence between the Union and the Member States applies in the
following principal areas:
(a) internal market;
(b) social policy, for the aspects defined in this Treaty;
(c) economic, social and territorial cohesion;
(d) agriculture and fisheries, excluding the conservation of marine biological resources;
(e) environment;
(f) consumer protection;
42
(g) transport;
(h) trans-European networks;
(i) energy;
(j) area of freedom, security and justice;
(k) common safety concerns in public health matters, for the aspects defined in this
Treaty.
3. In the areas of research, technological development and space, the Union shall have
competence to carry out activities, in particular to define and implement programmes;
however, the exercise of that competence shall not result in Member States being
prevented from exercising theirs.
4. In the areas of development cooperation and humanitarian aid, the Union shall have
competence to carry out activities and conduct a common policy; however, the exercise
of that competence shall not result in Member States being prevented from exercising
theirs.
COORDINATION COMPETENCES
Article 5
1. The Member States shall coordinate their economic policies within the Union. To this
end, the Council shall adopt measures, in particular broad guidelines for these policies.
Specific provisions shall apply to those Member States whose currency is the euro.
2. The Union shall take measures to ensure coordination of the employment policies of
the Member States, in particular by defining guidelines for these policies.
3. The Union may take initiatives to ensure coordination of Member States' social
policies. Article
6 The Union shall have competence to carry out actions to support, coordinate or
supplement the actions of the Member States. The areas of such action shall, at
European level, be:
(a) protection and improvement of human health;
(b) industry;
(c) culture;
(d) tourism;
(e) education, vocational training, youth and sport;
(f) civil protection;
(g) administrative cooperation.
43
C ) EXTERNAL ACTION
European foreign and security policy
The EU’s joint foreign and security policy, designed to resolve conflicts and foster international
understanding, is based on diplomacy and respect for international rules. Trade, humanitarian aid,
and development cooperation also play an important role in the EU's international role.
EU foreign and security policy seeks to:
• preserve peace
• strengthen international security
• promote international cooperation
• develop and consolidate democracy, the rule of law and respect for human rights & fundamental
freedoms
• Summaries of EU legislation on foreign and security policy
The EU maintains partnerships with the world's key players, including emerging powers and regional
groups. It seeks to ensure that these relationships are based on mutual interests and benefits.
The EU has no standing army, so relies on ad hoc forces contributed by EU countries. The EU can
send missions to the world’s trouble spots; to monitor and preserve law and order, participate in
peacekeeping efforts or provide humanitarian aid to affected populations.
• Foreign policy partnerships and action
The External action service (EEAS) acts as the EU's diplomatic service. A network of over 140
delegations and offices around the world promotes and protects the EU’s values and interests.
• EU delegations and offices in the world
In foreign policy, the EU's ultimate decision-making body is the European Council, which comprises
EU country heads of state and governments. Most foreign and security policy decisions require the
agreement of all EU countries.
44
External relations
The work of the European Union (EU) in the area of external relations includes
the negotiation of trade agreements, and cooperation on energy, health, climate
and environmental issues, often in the context of international organisations
such as the United Nations. It also operates European Neighbourhood Policy
programmes in relation to its closest international neighbours.
Under the Lisbon Treaty, which came into force in 2009, there was a
reorganisation of the EU's external relations work with the creation of the
European External Action Services (EEAS), the European Union's diplomatic
arm, and the post of High Representative of the Union for Foreign Affairs and
Security Policy.
Mediterranean partner countries
• General framework
o Framework for relations
▪ Euro-Mediterranean Association Agreements
▪ Pan-Euro-Mediterranean preferential rules of origin
o European Neighbourhood Policy
▪ EU macro-financial assistance to non-EU countries in 2016
▪ ENI — the European Neighbourhood Instrument (2014-2020)
Euro-Mediterranean Association
Agreements
The European Union (EU) concluded Euro-Mediterranean Association
Agreements between 1998 and 2005 with seven countries in the southern
Mediterranean. These agreements effectively provide a suitable framework for
North-South political dialogue. They also serve as a basis for the gradual
liberalisation of trade in the Mediterranean area, and set out the conditions for
45
economic, social and cultural cooperation between the EU and each partner
country.
SUMMARY
The Euro-Mediterranean partnership between the European Union (EU)
and the countries of the Southern Mediterranean began in 1995 by
the Barcelona process. The political, economic and social partnership is based
on the principles of reciprocity, solidarity and co-development.
Under this framework, the Association Agreements have been adopted
between the EU, the Member States and the Mediterranean country partners.
These bilateral agreements replace the first generation of agreements, i.e. the
cooperation agreements of the 1970s.
Adherence to democratic principles and fundamental rights are an essential
element of the association agreements.
Although they are bilateral agreements and provide for specific arrangements
with each partner State, the association agreements share a similar structure.
They are intended to promote the following:
• regular dialogue on political and security matters, in order to
promote mutual understanding, cooperation and joint initiatives;
• economic, trade and financial cooperation, aimed in particular at
gradual trade liberalisation, sustainable development of the region and
investment;
• social and cultural cooperation and on educational matters, in
particular through intercultural dialogue, migration control, developing
qualifications, promoting labour law and gender equality.
In addition, the agreements encourage intra-regional cooperation between
the Mediterranean countries, as a factor for peace, stability and economic and
social development.
Towards a free trade area
The association agreements provide for the gradual establishment of a
Mediterranean free trade area in accordance with the rules of the World Trade
Organization (WTO). This free trade area shall be established after a
transitional period of twelve years following the entry into force of the
agreements. However, free trade between the EU and Israel already exists.
The free movement of goods between the EU and the Mediterranean
countries is to result from:
• the gradual removal of customs duties;
• the prohibition of quantitive restrictions on exports and imports, and any
similar or discriminatory measures between the parties.
The rules will have particular relevance for imports of industrial products and
trade in agricultural products, processed or otherwise, and fisheries products.
46
Safeguard measures may, however, be applied if they are in the public

interest, or to protect economic sectors that are particularly vulnerable.
Regarding the right of establishment and the supply of services, the
parties reaffirm their commitments under theGeneral Agreement on Trade in
Services (GATS). In addition, the partners must promote the full liberalisation
of the capital sector as soon as the necessary conditions are in place.
Lastly, a mechanism for regulating trade disputes shall be gradually
established.
ENI — the European Neighbourhood

Instrument (2014-2020)
SUMMARY OF:
Regulation (EU) No 232/2014 establishing a European Neighbourhood
Instrument
WHAT IS THE AIM OF THE REGULATION?

It sets up the European Neighbourhood Instrument (ENI).
ENI aims to create an area of shared prosperity and good neighbourliness
between EU countries and partner countries by:
• promoting human rights, the rule of law, sustainable democracy and

citizen participation;
• sustainable and inclusive growth and economic, social and territorial
development, including progressive integration in the EU’s internal
market;
• mobility and people-to-people contacts, including student exchanges;
• regional integration, including cross-border cooperation programmes.
Respect for human rights, democracy and good governance will be an important
criterion influencing the granting of funds to partner countries.
KEY POINTS
The ENI provides the bulk of funding to the 16 partner countries covered by
the European neighbourhood policy (ENP), which was reviewed in 2015 to
respond to the new challenges of an evolving neighbourhood and is based on
differentiation, joint ownership and flexibility.
This financing instrument seeks to strengthen relations with the beneficiaries
through bilateral, multi-country and cross-border cooperation (CBC)
programmes.
47
Partner countries
ENI beneficiaries are Algeria, Armenia, Azerbaijan, Belarus, Egypt,
Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco,
occupied Palestinian territory (oPt), Syria, Tunisia and Ukraine.
Responding to the evolving relationship with Russia, this country remains
eligible under ENI for regional cooperation. ENI also supports the
implementation of regional and macro-regional strategies (as for
the Black Sea synergy).
Latin America
EU-CELAC RELATIONS
https://eeas.europa.eu/headquarters/headquarters-
homepage_en/13042/EU-CELAC%20relations
The European Union and Latin America and the Caribbean enjoy privileged
relations and are natural partners, linked by strong historical, cultural and
economic ties. They share a strategic bi-regional partnership, which was
launched in 1999 and stepped up significantly in the recent years. The two
regions co-operate closely at international level across a broad range of issues
and maintain an intensive political dialogue at all levels.
The Community of Latin American and Caribbean States (CELAC) was launched
in 2011 and represents a regional political coordination mechanism, which
gathers all 33 Latin American and Caribbean countries in the region.
CELAC is the EU's official counterpart for the region-to-region Summit process
and strategic partnership.
The European Union's engagement with CELAC is part of a flexible approach to
its relations with Latin America and the Caribbean, combining different levels of
relations – regional, sub-regional and bilateral – which are complementary and
mutually reinforcing. The engagement with CELAC is complemented by strong
bilateral relations with individual countries, while deepening cooperation with
other sub-regional or regional groups such as Mercosur,
CARICOM/CARIFORUM, Pacific Alliance, SICA and UNASUR.
• EC-Mexico Global Cooperation Agreement
EC-Mexico Global Cooperation Agreement
This Agreement lays down the essential elements of bilateral relations between the European
Community and Mexico. To achieve this, it institutionalises the political dialogue and steps up
48
trade and economic relations by setting up a free trade area for goods and services. The
Agreement is based on respect for human rights and democracy.
• EU-Chile Association Agreement
EU-Chile Association Agreement
SUMMARY OF:
Association agreement between the EU, the EU countries and Chile
WHAT IS THE AIM OF THE AGREEMENT?
• It seeks to establish a political and economic association between the EU and Chile.
• It covers trade, financial, scientific, technical, social and cultural matters.
KEY POINTS
There are 3 strands to the agreement:
• political dialogue,
• cooperation, and
• trade.
• Regional cooperation
o MERCOSUR (Common Market of South America)
▪ Interregional Framework Cooperation Agreement between the
European Community and Mercosur
▪ https://ec.europa.eu/trade/policy/countries-and-
regions/regions/mercosur/
▪
Interregional Framework Cooperation Agreement between the European

Community and Mercosur
The objective of this Framework Agreement is to strengthen existing relations between the
European Community and Mercosur to prepare for an Interregional Association. The agreement
covers trade, economic matters, cooperation and other fields of mutual interest.
THE BI-REGIONAL ASSOCIATION AGREEMENT EU-

MERCOSUR
49
The EU concluded in 2019 the negotiation of a trade agreement with the

four founding members of Mercosur (Argentina, Brazil, Paraguay, and Uruguay)
as part of a bi-regional Association Agreement.
Venezuela has been a member of Mercosur since 2012 and is an observer in the
trade negotiations.
Trade relations between the EU and Mercosur are based on an inter-regional
Framework Cooperation Agreement which entered into force in 1999.
The EU and individual Mercosur countries also have bilateral framework
cooperation agreements, which also deal with trade-related matters.
The EU-Mercosur Free Trade Agreement

The EU-Mercosur negotiations re-launched in May 2010 before negotiations
were paused in 2012.
In May 2016, the EU and Mercosur relaunched negotiations and exchanged
offers, followed by a negotiation round in October 2016.
The negotiations ended on June,28th., 2019.
The EU-Mercosur Free Trade Agreement was signed on July,1st.,
2019.
The agreement covers issues that include:

▪ tariffs
▪ rules of origin
▪ technical barriers to trade
▪ sanitary and phytosanitary measures
▪ services
▪ government procurement
▪ intellectual property
▪ sustainable development
▪ small- and medium-sized enterprises
50
o Andean Community
▪ EEC-Andean Community Cooperation Agreement
EEC-Andean Community Cooperation Agreement
This Agreement is designed to give fresh impetus to relations between the European Economic
Community and the countries of the Andean Pact by promoting development of cooperation on
trade, investment, finance and technology and deepening and consolidating the Andean
subregional integration process.
Sectors of cooperation
The Contracting Parties undertake to establish economic cooperation of the widest possible
scope. The aims are to:
• strengthen and diversify their economic links;
• contribute to the sustainable development of their economies and standards of living;
• encourage the expansion of trade to diversify and open up new markets;
• encourage the flow of investment, technology transfer and reinforce investment
protection;
• raise the level of employment and improve human productivity in the work sector;
• promote rural development and improve technological capacity;
• support the movement towards regional integration;
• exchange information on statistics and methodology.
Opportunities for economic, industrial and trade cooperation and technological innovation. The
priority areas are:
• advanced scientific and technological research;
• development and management of science and technology policies;
• protection and improvement of the environment;
• rational use of natural resources;
• integration and regional cooperation in science and technology;
• biotechnology;
51
THE COMPREHENSIVE TRADE AGREEMENT EU-

COLOMBIA, PERU AND ECUADOR
The EU has a comprehensive Trade Agreement with Colombia and Peru, which
has been provisionally applied, with Peru since 1 March 2013 and with
Colombia since 1 August 2013. On 1 January 2017, Ecuador joined the trade
agreement.
The agreement gradually opens up markets on both sides and increases the
stability and predictability of the trade and investment environment.
The fourth annual report on the trade agreement’s implementation was issued
on 31 October 2018.
Bolivia, a member of the Andean Community, can also seek accession to the
trade agreement.
o Central America
▪ EEC-Central America Framework
Cooperation Agreement
• EEC-Central America Framework Cooperation

Agreement
• The aim of this Agreement is to strengthen cooperation with the six
Central American Republics. It covers cooperation in the economic,
financial, commercial, social, science and technology, and environmental
sectors.
Middle East
• EU strategy for Syria
• Bilateral relations
o Gulf States
▪ Cooperation Agreement between the EEC and the Gulf Cooperation Council
(GCC)
o Yemen
▪ Cooperation Agreement between the European Community and the Republic
of Yemen
52
Eastern Europe and Central Asia
o Association Agreement with Ukraine
o Framework for relations
▪ Readmission agreements with Eastern European countries
▪ Partnership and Cooperation Agreements (PCAs): Russia, Eastern Europe,
the Southern Caucasus and Central Asia
o European Neighbourhood Policy (ENP)

▪ EU macro-financial assistance to non-EU countries in 2016
▪ ENI — the European Neighbourhood Instrument (2014-2020)
• Sectoral cooperation
European Energy Charter
Asia
o SAARC (South Asian Association for Regional Cooperation)
▪ Partnerships with countries in the South Asian Association for Regional
Cooperation (SAARC)
• Bilateral relations
o Bangladesh
▪ Agreement with Bangladesh on partnership and development
o China
▪ EU relations with China
▪ Scientific and technological cooperation between the EU and China
o India
▪ Scientific and technological cooperation between the EU and India
o Japan
▪ EU–Japan mutual legal assistance
▪ Customs Agreement with Japan
▪ EU-Japan Strategic Partnership Agreement
▪ EU-Japan mutual recognition agreement (MRA)
o South Korea
▪ EU-Republic of Korea free trade agreement
53
Industrialised countries
• Agreement on the European Economic Area
• Relations with industrialised countries

o EU-US agreement on airline passenger name record data
o United States
▪ EU–US aviation agreements
▪ Agreement with the United States on mutual legal assistance
▪ Container security: EU/US agreements
▪ Agreement between the European Union and the United States on the
transfer of financial messaging data
▪ Agreement with the United States on extradition
o Canada
▪ Agreements with Canada on customs matters
The European Commission proposed the signature of the EU-Canada Comprehensive Economic
and Trade Agreement (CETA) to the Council of the EU in July 2016. The Council approved the
agreement in October 2016 and the European Parliament voted in favour of it on 15 February
2017.
• CETA entered into force provisionally on 21 September 2017 ( currently in

force ). National parliaments in EU countries have still to approve it.
• https://ec.europa.eu/trade/policy/in-focus/ceta/
o Sectoral cooperation
▪ EU-Switzerland agreement on statistics
▪ Convention for the Conservation of Salmon in the North Atlantic Ocean
• Relations with European Economic Area countries (EEA)
o Statistical cooperation within the European Economic Area
o Agreement on the surrender procedure between the EU Member States, Iceland
and Norway
54
D ) THE EUROPEAN UNION AT PRESENT AND

CHALLENGES IN THE ENLARGEMENT OF THE
EUROPEAN INTEGRATION
The member countries of the EU ( before BREXIT in

2021 )
BY YEAR OF ENTRY
Year of entry Countries
01/01/1958 Belgium
France
Germany
Italy
Luxembourg
Netherlands
01/01/1973 Denmark
Ireland
United Kingdom ( BREXIT IN 2021 )
01/01/1981 Greece
01/01/1986 Portugal
Spain
01/01/1995 Austria
Finland
Sweden
55
01/05/2004 Cyprus
Czechia
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovakia
Slovenia
01/01/2007 Bulgaria
Romania
01/07/2013 Croatia
Countries using the euro ( up-to-date 2023 )

The euro (€) is the official currency of 19 out of 27 EU countries. These countries are collectively
known as the Eurozone.
Which countries use the euro?
Euro area countries

Although all EU countries are part of the Economic and Monetary Union (EMU), 19 of them have replaced
their national currencies with the single currency – the euro. These EU countries form the euro area, also
known as the eurozone.
• Austria
• Belgium
• Cyprus
• Estonia
• Finland
• France
• Germany
56
• Greece
• Ireland
• Italy
• Latvia
• Lithuania
• Luxembourg
• Malta
• the Netherlands
• Portugal
• Slovakia
• Slovenia
• Spain
These are countries where the euro has still not been adopted, but who will join
once they have met the necessary conditions. Mostly, it consists of countries of
member states which acceded to the Union in 2004, 2007 and 2013, after the
euro was launched in 2002.
• Bulgaria
• Croatia
• Czech Republic
• Hungary
• Poland
• Romania
• Sweden
Occasionally, member states can negotiate an opt-out from any of the European
Union legislation or treaties, and agree to not participate in certain policy areas.
Concerning the single currency, this is the case for Denmark. This country kept
its currency after becoming member of the EU.
• Denmark
57
THE ENLARGEMENT OF THE EUROPEAN UNION
Current status
Country Joined the EU on
Croatia 1 July 2013
Country Status
Iceland requested not to be

Iceland regarded
as a candidate country
Candidate countries
Still negotiating – or waiting to start.
Membership negotiations
Country
started
Albania
North
Macedonia
Montenegro Negotiations status
Serbia Negotiations status
58
Turkey Negotiations status
Potential candidates
They were promised the prospect of joining when they are ready.
Country
Bosnia and Herzegovina
Kosovo*
59

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International Organizations. Prof. Dr.Dr. José Escribano. 2023.

12. European Union ( II )

A ) Main Institutions and rules

A ) MAIN INSTITUTIONS AND RULES.

EU institutions, organs and bodies

What does the Parliament do?

• Democratic scrutiny of all EU institutions

• Establishing the EU budget, together with the Council

How does the Parliament work?

• Committees - to prepare legislation.

• Role: Defines the general political direction and priorities of the

• ask the European Commission to make a proposal to address it.

• Council of the European Union

• Role: Voice of EU member governments, adopting EU laws and coordinating

What does the Council do?

Who chairs the meetings?

How does the Council work?

• Role: Promotes the general interest of the EU by proposing and enforcing

What does the Commission do?

Manages EU policies & allocates EU funding

• Sets EU spending priorities, together with the Council and Parliament.

• Speaks on behalf of all EU countries in international bodies, in particular in areas of

Appointing the President

Selecting the team

How does the Commission work?

Collective decision making

The relevant Directorate-General (headed by a Director-General, answerable to the relevant

• Court of Justice of the European Union (CJEU)

o Court of Justice: 1 judge from each EU country, plus 11 advocates general

What does the CJEU do?

How does the CJEU work?

• European Central Bank (ECB)

What does the ECB do?

• Monitors price trends and assesses risks to price stability.

• Governing Council – the main decision-making body.

• Governing Council – assesses economic and monetary developments, defines

• Executive Board – implements monetary policy, manages day-to-day

• General Council – contributes to advisory and coordination work and helps

• European Court of Auditors (ECA)

What does the ECA do?

• what it will audit

How does the ECA work?

• Financial audits – checking that accounts accurately present the financial

ORGANS AND BODIES

• European External Action Service (EEAS)

• Role: Manages the EU's diplomatic relations with other countries

What does the EEAS do?

• Peace building – through political, economic and practical support

• in Brussels – expert staff transferred from the Council of the EU,

• European Economic and Social Committee (EESC)

• Role: Advisory body representing employers' and workers' organisations

What does the EESC do?

• European Committee of the Regions (CoR)

What does the CoR do?

• The European Commission, the Council of the EU and the European

How does the CoR work?

The CoR and you