Structure and Functions of European Union Institutions

The European Parliament (EP)

The European Parliament (EP) is a constitutional institution in the European Union (EU) that directly represents EU citizens. It is elected every five years by universal, direct, and secret vote of European citizens in European elections.

Role and Democratic Nature of the EP

The EP is the most democratic parliament in the world and, within the European Union, the only supranational body that is directly elected. The Parliament is considered the "first institution" of the European Union; it is first mentioned in the treaties, and its President takes protocol precedence over all other authorities in Europe. Along with the Council of the European Union, the EP is part of the bicameral legislative branch of EU institutions. Since its founding in 1952, its powers were extended several times, notably through the Maastricht Treaty in 1992 and the recent Treaty of Lisbon in 2007.

Although it was founded only as a consultative assembly, the legislative powers of Parliament increased dramatically from the Treaty of Maastricht (1992). Today, it boasts, alongside the Council, the legislature of the Union. Its democratic nature and its growing power have made it one of the most powerful legislatures in the world. (Spain currently has 54 Members of the European Parliament, or MEPs.)

Seats and Locations

The European Parliament's official seat is in the French city of Strasbourg, although the institution has three places of work:

• Brussels (Belgium)
• Luxembourg
• Strasbourg (France)

Key Institutions of the European Union

The European Council

The European Council is composed of the Heads of State or Government of the Union, plus its own Chairman and the President of the European Commission. It meets quarterly and upon special convocation of its President. Its functions include policy guidance and impetus, and the definition of strategic policy lines for the Union. Specifically, it lacks any legislative power, but its influence is large and tends to increase as European integration extends to a level close to what is sometimes called "the core of sovereignty."

The Council of the European Union (Council of Ministers)

The Council of the European Union (CEU), commonly known as the Council of Ministers, brings together representatives of the Governments of the Member States whose national interests are embedded in the decision-making process, guided by the pursuit of a common agreement. The Council exercises the legislative power of the Union jointly with the European Parliament. It holds the formal title of important executive powers, but the exercise of these powers necessarily involves the Commission.

The European Commission (EC)

The European Commission (EC) represents the executive power within the EU, but it is also heavily involved in legislation. It is a politically independent institution that represents and defends the interests of the Union as a whole. Its primary roles include:

• Proposing legislation, policies, and programs of action. (It has the exclusive right of initiative in the legislative process, meaning it proposes new EU laws, which are then adopted by the Parliament and the Council.)
• Implementing the decisions of the Parliament and the CEU.
• Addressing the day-to-day functioning of the Union.
• Acting as the "guardian of the Treaties," ensuring respect for EU law and treaties.

EU Financial Mechanisms

The Cohesion Fund

The Cohesion Fund of the European Union was created when the organization was called the European Community. Its aim was for the Northern European countries to help the South develop, benefiting all countries of the Commonwealth (Community). The expectation was that the Southern countries, after their development, would import from the North, thereby creating a new market among CE members.