E U Economic and Structural Policies, Current Issues in EU

1. EU Economic and Structural Policies, Current Issues in EU Dr. Pietro Andrea Podda, PhD High School of Finance and Administration in Prague

2. EU and European Union Law • The EU is a supra-national organisationwithlegal personality • EU Law regulates the activities of the EU, the duties/rights of the member states and the relations between the EU and the member states • There are 27 members of the EU: Belgium, France, Germany, Italy, Luxembourg, Netherlands (founding members), Denmark, Great Britain, Ireland (1973), Greece (1981),Portugal and Spain (1986), Austria, Finland, Sweden (1995), Cyprus, Czech Republic, Hungary, Estonia, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia (2004), Bulgaria, Romania (2007). Negotiations are in course with Croatia, Macedonia, Turkey and Albania. Norway and Switzerland are not members of the EU • The EU is the largest economic area in the world • The EU law encompasses matters like trade law, environmental law, culture, social affairs, tax law etc... • The official languages of the member states are all official languages of the EU. All acts of the EU are translated into its official languages. However the working languages are English, French and also German

3. The European Council • Iscomposed by theHeadsofStatesorofGovernmentsofthememberstates, the President oftheEuropeanCommission (thislatteris not entitled to vote). It has a President. • Normallymeets in Bruxelles • Does not have to beconfusedwiththeCouncilofthe Union andtheCouncilofEurope. TheCouncilofEuropehasnothingto do with EU • Shouldmeetatleast four times per year but in practicethemeetingsarealwaysmorefrequent • Definesthegeneralguidelinesofthepoliciesofthe EU (enlargement, revisionof Treaties) • Itis now anofficialinstitutionofthe EU andoperatesataninter-governmentallevel • Appointsthe President ofthe Commission and the High Representative • The President oftheEuropeanCouncilis Van Rompuy. The President is appointed for 2 years and a half by a qualified majority

4. The Council of the European Union 1 • It is composed by the member states and deals with the issues covered by EU law (ex.agriculture, culture, environment etc…) It is represented by the Ministers competent in the specific issue dealt with. In particular, the ECOFIN focuses on economic and financial affairs, the General Affair and External Relations (GAER) is composed by the Ministers of Foreign Affairs of the various countries • Decisions are taken on the basis of voting (normally qualified majority). The weight of any single state in the process of voting depends on its population, even if there is not a perfect proportion. Germany, Uk, France and Italy have the highest weight (29 votes each), Malta the lowest (3). The Czech Republic has 12 votes • Does not have to be confused with the European Council and the Council of Europe • Together with the Parliament, it is the legislative body of the EU • The General Secretariat of the Council and the Committee of Permanent Representatives (COREPER) prepare the activities of the ministers

5. The Council of the European Union 2 • The General Secretary is appointed by the Council of the Union • The Presidency is held by a member state and rotates every six months. There is a coordination between the previous, the current and the future Presidency (troika) • The Presidency sets the agenda, represents the Council with other EU institutions. It also declares the main guidelines of its action to the Parliament • Its seat is in Breuxelles. However meetings are held also in Luxembourg City • The Council can invite the Commission to take the initiative as for the creation of new legislation

6. The European Commission 1 • It is composed by 27 Commissioners, one per State. However the Commissioners represent the EU and not their StateThe President is appointed by the European Council. The European Parliament has to express its agreement. In principle the European Council should appoint the other Commissioners. In practice every member of EU appoints a commissioner. Finally the European Parliament must express a vote of confidence. The Parliament can also withdraw its confidence at any momentThe Commission is the executive body of the EU. The Commission monitors the respect of the EU law by the member statesThe Commission takes the initiative in the legislative processThe High Representative of the Union for Foreign Affairs and Security Policy is a vice-President of the Commission

7. The European Commission 2 • The Commission acts collegially. The deeds of the Commission are imputable to the whole body and not to the single Commissioners • In the course of time the role of the Commission is becoming more political and less technical • In certain cases (usually on technical issues) , the Council of EU may delegate the legislativepower to the Commission. In this case, various committees, whose members are appointed by Member States, collaborate with the Commission (Comitology). Their role is often consultative but they may also have specific powers regarding the execution of EU legislation and the creation of new legislation

8. The High Representative of the Union for Foreign Affairs and Security Policy • Elected by the European Council by qualified majority • Represents the EU with third parties • Not clear division of competences with the President of the European Council and that of the Commission

9. The European Parliament • It is elected every 5 years by the citizens of EU. Every country sends a number of representatives in proportion with its population. This proportion is biased in favour of the smallest states • Together with the Council of the EU, it has a legislative power . In the bulk of cases, these two institutions must agree in order legislation to be passed (ordinary legislative procedure) • It can propose to the Commission to take the initiative (pre-initiative of the European Parliament) • It meets in Bruxelles and Strasbourg • It approves the choice of the President of the European Commission. It confers and withdraw confidence to the Commission • Is assisted by a Secretariat ( based in Luxembourg city) and various Committees 7. It must hear members of the Council of the EU and the Commission if they so require 8. It normally decide on the basis of absolute majority

10. Other Institutions The Ombudsman is appointed by the Parliament. Every natural or legal person residing or having its office in the EU is entitled to complain with the Ombudsman about maladministration of EU Law from the side of EU Institutions. The Ombudsman investigates the case and , if convinced of maladministration, writes a report to the European Parliament and the concerned Institution The Economic and Social Committee is a consultative body which represents the social and economic categories (workers, employers) The Regional Committee is a consultative body which represents the local authorities The European Investment Bank (EIB) guarantees loans for the implementation of projects expected to enhance the level of development in the EU The Court of Auditors audits the expensens of the EU and discharges the Commission

11. Secundary legislation of EU • A regulation is binding for the Member States and has a general destination • A directive is binding as for the achievement of a certain result, but leaves to the member states the responsibility to devise the measures to achieve the result • A decision is binding and has specific addressees • Recommendations and opinions are not binding but have a high political value • There are other non-binding acts like declarations, guidelines

12. Principles of EU Law • EU secundary legislation prevails over national legislation , even if national legislation is subsequent (principle of supremacy) • EU Regulations are immediately applicable in the member states and do not require any form of ratification (principle of direct applicability). Moreover they confer rights to individuals, which can be invoked during cases dealt by national courts (direct effect) • The measures taken by the EU do not have to exceed the limit of the necessity for the achievement of EU aims (principle of proportionality) • In those matters with shared competence, the EU takes measures only when the single action of Member States is not sufficient for the achievement of the aims of the EU (principle of subsidiarity)

13. Court of Justice of the EU 1 • It is composed by three jurisdictional bodies: the European Court of Justice, the General Court (formerly called Tribunal of First Instance) and the Civil Service Tribunal • The European Court of Justice • a) is composed by 1 judge per member state, appointed for 6 years by common accord by the member states. Judges do not represent their original countries • b) its decisions are binding for Member States and EU Institutions • c) the Court acts collegially and is assisted by Advocates General (8 at the moment) who deliver an opinion on the case treated • d) The Court‘ competence is over: • 1) infringement of EU Law by Member States • 2) respect of EU Law by EU institutions, “judicial review” of the legality of acts • 3) failure to act of EU Institutions • 4) preliminary rulings- national courts refer to the Court in order to check the compatibility of domestic law with EU Law and/or to obtain interpretation of EU Law

14. Court of Justice of the EU 2 • The General Court is composed, as the European Court of Justice, by 27 judges one per member state • It deals with the cases brought by individuals regarding • a) the validity of the acts of EU institutions • b) failure to act of EU institutions • c) liability of EU for damages • The General Court is also competent when a member state recurs against the Commission and, in specific cases, against the Council • Appeals on points of law against statements of the General Court are dealt by the Court of Justice • The Civil Service Tribunal has competence over disputes between EU and its officials