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Encyclopedia > Law of the European Union

European Union

This article is part of the series:
Politics and government of
the European Union
Image File history File links This is a lossless scalable vector image. ... The European Union or EU is a supranational and international organization of 27 member states. ...


Treaties
Rome · Maastricht (Pillars)
Amsterdam · Nice · Reform
Institutions
Commission

President José Manuel Barroso
Current College (2004-2009) The treaties of the European Union are effectively its constitutional law, making up the EUs primary legislation. ... The Treaty of Rome signing ceremony Signatures in the Treaty The Treaty of Rome refers to the treaty which established the European Economic Community (EEC) and was signed by France, West Germany, Italy, Belgium, the Netherlands and Luxembourg on March 25, 1957. ... The Maastricht Treaty (formally, the Treaty of European Union, TEU) was signed on February 7, 1992 in Maastricht, Netherlands after final negotiations in December 1991 between the members of the European Community and entered into force on November 1, 1993 during the Delors Commission. ... The Treaty of Maastricht which established the European Union, divided EU policies into three main areas, called pillars. ... Treaty of Amsterdam amending the Treaty of the European Union, the Treaties establishing the European Communities and certain related acts The Treaty of Amsterdam amending the Treaty of the European Union, the Treaties establishing the European Communities and certain related acts, commonly known as the Amsterdam Treaty, was signed on... Treaty of Nice The Treaty of Nice is a treaty adopted in Nice by the European Council to amend the two founding treaties of the European Union: the Treaty on European Union, or Maastricht Treaty, which introduced the Euro and the 3-pillar structure of the EU; the Treaty of... The Reform Treaty (also referred to as; future institutional settlement or new legal basis, among others) is a proposed replacement for the Treaty establishing a Constitution for Europe (European Constitution). ... This article or section should be merged with List of European Union-related topics The European Union has several institutions: The European Parliament The European Council The Council of the European Union (or Council of Ministers) The European Commission The European Court of Justice (incorporating the Court of First Instance... The Commission seat in Brussels The European Commission (formally the Commission of the European Communities) is the executive body of the European Union. ... François-Xavier Ortoli, Romano Prodi, José Manuel Barroso and Jacques Delors The President of the European Commission is notionally the highest ranking unelected official within the European Union bureaucracy. ... José Manuel Durão Barroso (pronunced: IPA, ) (born in Lisbon, March 23, 1956) is a Portuguese politician. ... The Barroso Commission is the European Commission that has been in office since 22 November 2004 and is due to serve until 31 October 2009. ...


Parliament

President Hans-Gert Pöttering
Members (2004-2009) Established 1952, as the Common Assembly President Hans-Gert Pöttering (EPP) Since 16 January 2007 Vice-Presidents 14 Rodi Kratsa-Tsagaropoulou (EPP) Alejo Vidal-Quadras (EPP) Gérard Onesta (Greens – EFA) Edward McMillan-Scott (ED) Mario Mauro (EPP) Miguel Angel Martínez Martínez (PES) Luigi Cocilovo (ALDE) Mechtild... The President of the European Parliament oversees all the activities of the European Parliament and its constituent bodies. ... Hans-Gert Pöttering (often written as Poettering; born September 15, 1945 in Bersenbrück, Lower Saxony) is a German conservative politician (CDU), and has been President of the European Parliament since January 2007. ... A Member of the European Parliament (English abbreviation MEP)[1] is a member of the European Unions directly-elected legislative body, the European Parliament. ... This is a list giving breakdowns of the European Parliamentary session from 2004 to 2009. ...


Council

Presidency: Portugal (Luís Amado)
European Council: José Sócrates Established 1952 Presiding Country Portugal President Luís Amado President in Office José Sócrates Members 27 (at one time) Political parties 7, including: European Peoples Party Party of European Socialists Meeting place Justus Lipsius, Brussels, Belgium, European Union Web site http://www. ... The Presidency of the Council of the European Union refers to the responsibility of presiding over all aspects of the Council of the European Union, when exercised collectively by a government, on a pre-established rota of the member states, of the European Union. ... Luís Filipe Marques Amado (b. ... The European Council (referred to as a European Summit) is a body of the European Union which meets around four times a year. ... José Sócrates de Carvalho Pinto de Sousa, GCIH (pron. ...


Court of Justice

President · Members · Auditors
First Instance · Civil Service European Court of Justice building, Luxembourg The Court of Justice of the European Communities, usually called the European Court of Justice (ECJ), is the highest court of the European Union (EU). ... Vassilios Skouris, (b. ... As of August 17, 2006: Categories: | | | ... The European Court of Auditors is one of five institutions of the European Union. ... The Court of First Instance, created in 1989, is a court of the European Union. ... European Union Civil Service Tribunal, since December 2, 2005 a new specialised tribunal within the European Union institutional framework. ...

Elections
Last election (2004) · 2007 by-election
Next election (2009) · Constituencies
Parties · Parliamentary groups
Related topics
States · Enlargement · Foreign relations
Law · EMU · Other bodies · Agencies

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The Law of the European Union is the unique legal system which operates alongside the laws of Member States of the European Union (EU). EU law has direct effect within the legal systems of its Member States, and overrides national law in many areas, especially in terms of economic and social policy. The EU is not a federal government, nor is it an intergovernmental organization. It constitutes a new legal order in international law[1] for the mutual social and economic benefit of the Member States. European Union law has evolved gradually over the last 56 years. When the Treaty of Paris was signed in 1951, it established the European Coal and Steel Community, and was comprised of just six Member States. Five years later the European Economic Community was founded by the same six Member States. As of 2007, there are around 500 million EU citizens in 27 Member States subject to EU law, making it one of the most encompassing modern legal systems in the world. Elections in the European Union gives information on election and election results in the European Union. ... Elections to the European Parliament were held from June 10, 2004 to June 13, 2004 in the 25 member states of the European Union, using varying election days according to local custom. ... In early 2007, Bulgaria and Romania will elect their members of the European Parliament for the first time. ... Elections to the European Parliament will be held in June 2006 in the then–27 member states of the European Union, using varying election days according to local custom. ... European Parliament electoral system is proportional representation. ... The European political party, or formally political party at European level, is a type of political party organization in the European Union, eligible to receive funding from the Union. ... Political Groups in the European Parliament combine the MEPs from European political parties, informal European political blocs, and independents, into powerful coalitions. ... // Origins of the EU History of the European Union European Coal and Steel Community (ECSC) Euratom Single market. ... Austria Poland Belgium Bulgaria Cyprus Czech   Rep. ... This article needs additional references or sources for verification. ... Foreign relations of the European Union Foreign relations of Austria Foreign relations of Belgium Foreign relations of Cyprus Foreign relations of the Czech Republic Foreign relations of Denmark Foreign relations of Estonia Foreign relations of Finland Foreign relations of France Foreign relations of Germany Foreign relations of Greece Foreign relations... European Union law is the unique legal system which operates alongside the laws of Member States of the European Union (EU). ... In economics, a monetary union is a situation where several countries have agreed to share a single currency among them. ... This article or section should be merged with List of European Union-related topics The European Union has several institutions: The European Parliament The European Council The Council of the European Union (or Council of Ministers) The European Commission The European Court of Justice (incorporating the Court of First Instance... The agencies of the European Union (or decentralised bodies of the European Union) are bodies which are distinct from the European Unions institutions, in that they have not been created by the treaties but rather by acts of secondary legislation, in order to accomplish a very specific task. ... Information on politics by country is available for every country, including both de jure and de facto independent states, inhabited dependent territories, as well as areas of special sovereignty. ... Image File history File links This is a lossless scalable vector image. ... Lady Justice or Justitia is a personification of the moral force that underlies the legal system (particularly in Western art). ... Members of the European Coal and Steel Community Flag of the European Coal and Steel Community The European Coal and Steel Community (ECSC) was founded in 1951 (Treaty of Paris), by France, West Germany, Italy, Belgium, Luxembourg and the Netherlands to pool the steel and coal resources of its member...


EU law has what is known as a three pillar structure. The first, oldest and most important 'pillar' deals with law concerning economic and social rights and how European institutions are set up. This is found in the Treaty of the European Communities, signed in Rome 1957 and subsequently amended by other Treaties concluded between the Member States. The second and third pillars were established under the Treaty of the European Union, signed in Maastricht 1992. The second pillar concerns the European Union Common Foreign and Security Policy (CFSP). The third pillar concerns Police and Judicial Co-operation in Criminal Matters (formerly 'Justice and Home Affairs'). Technically speaking, "EC law" denotes anything to do with the first pillar and "EU law" denotes the law regarding all three pillars. The Maastricht Treaty (formally, the Treaty of European Union, TEU) was signed on February 7, 1992 in Maastricht, Netherlands after final negotiations in December 1991 between the members of the European Community and entered into force on November 1, 1993 during the Delors Commission. ... The Common Foreign and Security Policy, or CFSP, was established as the second of the three pillars of the European Union in the Maastricht treaty of 1992, and further defined and broadened in the Amsterdam Treaty of 1999. ... Police and Judicial Co-operation in Criminal Matters is the third of the three pillars of the European Union, focusing on co-operation in law enforcement and combating racism. ...

Contents

[edit] History and development

Initially, the Consultation procedure was the primary interplay of the institutions. Under it, Council must wait (unless it initiates an emergency procedure) for the EP’s opinion before adopting the legislation. This possibility for delay was in the early days the EP’s only weapon.


The role of the European Parliament in this institutional triangle has been gradually strengthened. Major landmarks in this gradual strengthening process have been

The development of law of the European Community has been largely moulded by the European Court of Justice (ECJ). In the landmark case of Van Gend en Loos in 1963, the ECJ ruled that the European Community, through the will of Member States expressed in the Treaty of Rome, "constitutes a new legal order of international law for the benefit of which the states have limited their sovereign rights albeit within limited fields." The Cooperation procedure was one of the legislative procedures of the European Community, the 1st of the three pillars of the European Union. ... The Single European Act (SEA) was the first major revision of the Treaty of Rome. ... The Amsterdam Treaty (in full: Treaty of Amsterdam amending the Treaty of the European Union, the Treaties establishing the European Communities and certain related acts) which was signed on October 2, 1997, and entered into force on May 1, 1999, made substantial changes to the Treaty on European Union which... Treaty of Nice The Treaty of Nice is a treaty adopted in Nice by the European Council to amend the two founding treaties of the European Union: the Treaty on European Union, or Maastricht Treaty, which introduced the Euro and the 3-pillar structure of the EU; the Treaty of...


The distinction between European Community (EC) law and European Union law is that based on the Treaty structure of the European Union. The European Community constitutes one of the 'three pillars' of the European Union and concerns the social and economic foundations of the single market. The second and the third pillars were created by the Treaty of the European Union (the Maastricht Treaty) and involve Common Security and Defence Policy and Internal Security. Decision-making under the second and third pillars is not subject to majority voting at present. The Maastricht Treaty created the Justice and Home Affairs pillar as the third pillar. Subsequently, the Treaty of Amsterdam transferred the areas of illegal immigration, visas, asylum, and judicial co-operation to the European Community (the first pillar). Now Police and Judicial Co-operation in Criminal Matters is the third pillar. Justice and Home Affairs now refers both to the fields that have been transferred to the EC and the third pillar. The Treaty of Maastricht which established the European Union, divided EU policies into three main areas, called pillars. ...


Several principles such as subsidiarity, proportionality, the principle of conferral, and the precautionary principle have become prominent in the development of European Union law. Scholars such as Catherine Barnard argue that the Four Freedoms form the substantive law of the EU: free movement of goods, services, capital, and labour within the internal market of the EU. Subsidiarity is the idea that matters should be handled by the smallest (or, the lowest) competent authority. ... The principle of proportionality is a political maxim which states that any layer of government should not take any action that exceeds that which is necessary to achieve the objective of government. ... The principle of conferral is a fundamental principle of European Union law. ... The precautionary principle is a moral and political principle which states that if an action or policy might cause severe or irreversible harm to the public, in the absence of a scientific consensus that harm would not ensue, the burden of proof falls on those who would advocate taking the... In European Union law, the Four Freedoms (sometimes the Four Liberties) are the free movement of goods, services, capital, and labour within the internal market of the European Union. ... Substantive law is the statutory or written law that governs rights and obligations of those who are subject to it. ... A good or commodity in economics is any object or service that increases utility, directly or indirectly, not be confused with good in a moral or ethical sense (see Utilitarianism and consequentialist ethical theory). ... Wikibooks has more about this subject: Marketing In economics and marketing, a service is the non-material equivalent of a good. ... This article is about a city that serves as a center of government and politics. ... In classical economics and all micro-economics labour is a measure of the work done by human beings and is one of three factors of production, the others being land and capital. ... A single market is a customs union with common policies on product regulation, and freedom of movement of all the four factors of production (land, enterprise, capital and labour). ...


[edit] Criminal law

In 2006, an toxic waste spill off the coast of Côte d'Ivoire, from a European ship, prompted the Commission to look into legislation against toxic waste. Environment Commissioner Stavros Dimas stated that "Such highly toxic waste should never have left the European Union". With countries such as Spain not even having a crime against shipping toxic waste the Franco Frattini, the Justice, Freedom and Security Commissioner, proposed with Dimas to create criminal sentences for "ecological crimes". His right to do this was contested in 2005 at the Court of Justice resulting in a victory for the Commission. That ruling set a precedent that the Commission, an a supranational basis, may legislate in criminal law - something never done before to outlined in treaties. So far though, the only other use has been the intellectual property rights directive.[2] Motions were tabled in the European Parliament against that legislation on the basis that criminal law should not be an EU competence, but was rejected at vote.[3] The 2006 Côte dIvoire toxic waste spill was a health crisis in Côte dIvoire in which a ship illegally dumped toxic waste in up to 12 sites around the countrys largest city, Abidjan, in August 2006. ... Stavros Dimas Barroso Commission, 2004 to 2009 The Commissioner for the Environment is the member of the European Commission responsible for protection of the European Unions environment. ... Stavros Dimas Stavros Dimas (Σταύρος Δήμας) (born 30 April 1941) is a Greek politician, currently serving as European Commissioner for the Environment. ... Franco Frattini (born 14 March 1957) is an Italian politician, currently serving as European Commissioner for Justice, Freedom and Security. ...


[edit] Treaties

The primary legislation, or treaties, are effectively the constitutional law of the European Union. They are created by governments from all EU Member States acting by consensus. They lay down the basic policies of the Union, establish its institutional structure, legislative procedures, and the powers of the Union. The Treaties that make up the primary legislation include: The treaties of the European Union are effectively its constitutional law, making up the EUs primary legislation. ...

  • the ECSC Treaty of 1951 (Treaty of Paris)
  • the EEC Treaty of 1957 (Treaty of Rome)
  • the EURATOM Treaty of 1957 (Treaty of Rome)
  • the Merger Treaty of 1965
  • the Acts of Accession of the United Kingdom, Ireland and Denmark (1972)
  • the Budgetary Treaty of 1970
  • the Budgetary Treaty of 1975
  • the Act of Accession of Greece (1979)

The various annexes and protocols attached to these Treaties are also considered a source of primary legislation. The heads of State and government of the member states of European Union signed a constitution in 2004, but it has not yet been ratified by the Member States and as of March 2007 it was unclear if it would be ratified. The European Coal and Steel Community (ECSC) was founded in 1951 (Treaty of Paris), by France, West Germany, Italy, Belgium, Luxembourg and the Netherlands to pool the steel and coal resources of its member-states, thus preventing another European war. ... The Treaty of Paris, signed on April 18, 1951 between Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands established the European Coal and Steel Community (ECSC), which subsequently became part of the European Union. ... The European Community (EC), most important of three European Communities, was originally founded on March 25, 1957 by the signing of the Treaty of Rome under the name of European Economic Community. ... The Treaty of Rome signing ceremony Signatures in the Treaty The Treaty of Rome refers to the treaty which established the European Economic Community (EEC) and was signed by France, West Germany, Italy, Belgium, the Netherlands and Luxembourg on March 25, 1957. ... The European Atomic Energy Community, or EURATOM, is an international organisation composed of the members of the European Union. ... The Merger Treaty, signed in Brussels on 8 April 1965 and in force since 1 July 1967, first gathered together the organizational structures of the then three European Communities (European Coal and Steel Community, European Economic Community and Euratom). ... The Single European Act (SEA) was the first major revision of the Treaty of Rome. ... The Maastricht treaty (formally, the Treaty on European Union) was signed on 7 February 1992 in Maastricht between the members of the European Community and entered into force on 1 November 1993. ... The Amsterdam Treaty (in full: Treaty of Amsterdam amending the Treaty of the European Union, the Treaties establishing the European Communities and certain related acts) which was signed on October 2, 1997, and entered into force on May 1, 1999, made substantial changes to the Treaty on European Union which... Treaty of Nice The Treaty of Nice is a treaty adopted in Nice by the European Council to amend the two founding treaties of the European Union: the Treaty on European Union, or Maastricht Treaty, which introduced the Euro and the 3-pillar structure of the EU; the Treaty of... The Treaty of Accession 2003 was the agreement between the European Union and ten countries (Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia), concerning these countries accession into the EU. At the same time it changed a number of points which were originally laid down in the... European Union 2007  Member states The Treaty of Accession 2005 is an agreement between the member states of European Union and Bulgaria and Romania. ... It has been suggested that this article or section be merged into European Union. ...


[edit] Institutions

This article or section should be merged with List of European Union-related topics The European Union has several institutions: The European Parliament The European Council The Council of the European Union (or Council of Ministers) The European Commission The European Court of Justice (incorporating the Court of First Instance... Image File history File linksMetadata Size of this preview: 800 × 443 pixel Image in higher resolution (1600 × 886 pixel, file size: 1. ... Image File history File linksMetadata Size of this preview: 800 × 443 pixel Image in higher resolution (1600 × 886 pixel, file size: 1. ... Nickname: Map showing the location of Brussels in Belgium Coordinates: , Country Belgium Region Brussels-Capital Region Founded 979 Founded (Region) June 18, 1989 Government  - Mayor (Municipality) Freddy Thielemans Area  - Region 162 km²  (62. ... Established 1952, as the Common Assembly President Hans-Gert Pöttering (EPP) Since 16 January 2007 Vice-Presidents 14 Rodi Kratsa-Tsagaropoulou (EPP) Alejo Vidal-Quadras (EPP) Gérard Onesta (Greens – EFA) Edward McMillan-Scott (ED) Mario Mauro (EPP) Miguel Angel Martínez Martínez (PES) Luigi Cocilovo (ALDE) Mechtild...

[edit] European Commission

Main article: European Commission

The Commission acts as an executive or civil service of sorts. It is currently composed of one member from each state (currently 27) and is responsible for drafting all proposed law, a duty on which it maintains a monopoly in order to co-ordinate European Law. It also controls some agencies and the day-to-day running of the Union. Its president is nominated by the European Council then elected by the Parliament. The Commission seat in Brussels The European Commission (formally the Commission of the European Communities) is the executive body of the European Union. ... The Byzantine civil service in action. ...


[edit] Council of Ministers

The Council of Ministers (technically, the Council of the European Union) forms one half of the Union's legislative branch (the other being the Parliament). It is composed of the national ministers responsible for the area of EU law being addressed, for example a law regarding agriculture would go to a Council composed of national agriculture ministers. This body should not be confused with the European Council below or the non-EU body, the Council of Europe. The body's presidency rotates between the member states every 6 months, though the current president member state co-operates with the previous and future president member state, to provide continuity. Established 1952 Presiding Country Portugal President Luís Amado President in Office José Sócrates Members 27 (at one time) Political parties 7, including: European Peoples Party Party of European Socialists Meeting place Justus Lipsius, Brussels, Belgium, European Union Web site http://www. ... The European Council (referred to as a European Summit) is a body of the European Union which meets around four times a year. ... Anthem Ode to Joy (orchestral)  ten founding members joined subsequently observer at the Parliamentary Assembly observer at the Committee of Ministers  official candidate Seat Strasbourg, France Membership 47 European states 6 observers (Council) 3 observers (Assembly) Leaders  -  Secretary General Terry Davis  -  Commissioner for Human Rights Thomas Hammarberg Establishment  -  Treaty of...


[edit] European Parliament

Main article: European Parliament

The European Parliament is the only Union body composed of officials directly elected by the citizens of the EU member states. Every 5 years citizens in all member states vote across a few days for 785 "MEPs" who form the second half of the Union's legislative branch. Its members sit according to political groups rather than nationality and its president is elected by its members. Established 1952, as the Common Assembly President Hans-Gert Pöttering (EPP) Since 16 January 2007 Vice-Presidents 14 Rodi Kratsa-Tsagaropoulou (EPP) Alejo Vidal-Quadras (EPP) Gérard Onesta (Greens – EFA) Edward McMillan-Scott (ED) Mario Mauro (EPP) Miguel Angel Martínez Martínez (PES) Luigi Cocilovo (ALDE) Mechtild... A Member of the European Parliament (English abbreviation MEP)[1] is a member of the European Unions directly-elected legislative body, the European Parliament. ...


[edit] Institutional acts

The European Parliament, the Commission and the Council of Ministers are empowered by the Treaties to legislate on all matters within the EU's competence.[4] Examples of this secondary legislation are regulations, directives, decisions, recommendations and opinions. Secondary legislation also includes inter-institutional agreements, which are agreements made between European Union institutions clarifying their respective powers, especially in budgetary matters. The Parliament, Commission and Council are capable of entering into such agreements. The legislative acts of the European Union (EU) can have different forms: regulations, directives, decisions, recommendations and opinions. ... Delegated legislation (sometimes referred to as secondary legislation or subordinate legislation) is law made by ministers under powers given to them by parliamentary acts (primary legislation) in order to implement and administer the requirements of the acts. ... A directive is a legislative act of the European Union which requires member states to achieve a particular result without dictating the means of achieving that result. ... A European Union decision (defined in Article 249/EC) is one of the three binding instruments provide by secondary EU legislation. ... In European Union Law a recommendation Differs from regulations, directives and decisions, in that they are not binding for Member States. ... The European Union is unique among international organisations in having a complex and highly developed system of internal law which has direct effect within the legal systems of its member states. ... Established 1952, as the Common Assembly President Hans-Gert Pöttering (EPP) Since 16 January 2007 Vice-Presidents 14 Rodi Kratsa-Tsagaropoulou (EPP) Alejo Vidal-Quadras (EPP) Gérard Onesta (Greens – EFA) Edward McMillan-Scott (ED) Mario Mauro (EPP) Miguel Angel Martínez Martínez (PES) Luigi Cocilovo (ALDE) Mechtild... The Commission seat in Brussels The European Commission (formally the Commission of the European Communities) is the executive body of the European Union. ... Established 1952 Presiding Country Portugal President Luís Amado President in Office José Sócrates Members 27 (at one time) Political parties 7, including: European Peoples Party Party of European Socialists Meeting place Justus Lipsius, Brussels, Belgium, European Union Web site http://www. ...


The classification of legislative acts varies among the First, Second and Third Pillars. In the case of the first pillar: Secondary legislation is classified based on to whom it is directed, and how it is to be implemented. Regulations and directives bind everyone, while decisions only affect the parties to whom they are addressed (which can be individuals, corporations, or member states). Regulations have direct effect, i.e. they are binding in and of themselves as part of national law, while directives require implementation by national legislation to be effective. However, states that fail or refuse to implement directives as part of national law can be fined by the European Court of Justice.


Directives and regulations can comprise of a mixture of maximum harmonisation and minimum harmonisation clauses, and can be enforced on either a home state or a host state basis. All EU legislation must be based on a specific Treaty article, which is referred to as the "legal basis" of the legislation. The European Constitution would have codified EU law and reduced secondary legislation to six clear types: EU laws, EU framework laws, decisions, regulations, recommendations and opinions. Maximum harmonisation is a term used in European Union law. ... Minimum harmonisation is a term used in European Union law. ... Home state regulation is a term used in European Community law relating to the cross border selling or marketing of goods and services. ... Host state regulation is a term used in European Community law relating to the cross border selling or marketing of goods and services. ... The Treaty establishing a Constitution for Europe, commonly referred to as the European Constitution, is an international treaty intended to create a constitution for the European Union. ... The European Union is unique among international organizations in having a complex and highly developed system of internal law which has direct effect within the legal systems of its member states. ... ... Look up decision in Wiktionary, the free dictionary. ... In European Union Law a recommendation Differs from regulations, directives and decisions, in that they are not binding for Member States. ... This article does not adequately cite its references or sources. ...


[edit] Legislative procedures

There are three main legislative procedures[2] in the European Union, with the main difference between them being how the European Parliament interacts with the Council of the European Union. The European Union legislative procedure describes the way the European Union creates and enacts legislation across the community. ...

The codecision procedure is the main legislative procedure by which law can be adopted in the European Community, the first of the three pillars of the European Union. ... The assent procedure is one of the legislative procedures of the European Community, the 1st of the Three pillars of the European Union. ... The Consultation procedure is one of the legislative procedures of the European Community, the 1st of the three pillars of the European Union. ...

[edit] European Court of Justice

The European Court of Justice (ECJ) and the Court of First Instance (CFI) are empowered to define and interpret primary and secondary legislation, and to "ensure that in the interpretation and application of this Treaty the law is observed".[5] The Court's jurisprudence forms a substantive body of law, which binds EU institutions and member states. Since the Maastricht Treaty, the Court has been empowered to impose pecuniary penalties on Member States who disobey.[6] The Court has been instrumental in shaping law in the EU, and its approach is generally described as purposive or teleological[7] European Court of Justice building, Luxembourg The Court of Justice of the European Communities, usually called the European Court of Justice (ECJ), is the highest court of the European Union (EU). ... The Court of First Instance, created in 1989, is a court of the European Union. ...


[edit] Other institutions

The European Central Bank (ECB) is controlling the monetary policy within the Eurozone, consisting of 13 member states. The ECB was established in 1998 and its headquarters is located in Frankfurt, Germany. The European Court of Auditors monitors the Union's accounts. There are also the two advisory committees; the Committee of the Regions and the Economic and Social Committee. Headquarters Coordinates , , Established 1 January 1998 President Jean-Claude Trichet Central Bank of Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain Currency Euro ISO 4217 Code EUR Reserves €43bn directly, €338bn through the Eurosystem (including gold deposits). ... The European Court of Auditors is one of five institutions of the European Union. ... Possible meanings: Cargo Outturn Report Carrier Operated Relay Catholic Organizations for Renewal Center for Orthopaedic Research Center of Rotation Central Office of Record Certificate of Recognition Certificate of Registration Change of Rater Change Order Request Chartered Organization Representative Church of the Redeemer Church of the Resurrection Class of Restriction Coalition... It has been suggested that monetary theory be merged into this article or section. ... The Eurozone (also called Euro Area, Eurosystem or Euroland) refers to the European Union member states that have adopted the euro currency union. ... For other uses, see Frankfurt (disambiguation). ... The Committee of the Regions (CoR) is an institution of the European Union created by the Treaty of Maastricht. ... The European Unions Economic and Social Committee is the consultative assembly of European social and economic partners. This phrase refers mainly to representatives of business, employers and trade unions. ...


Another major body, though not an official institution, is the European Council, composed of the heads of government (along with the President of the European Commission) meeting 4 times a year. It shares its presidency with that of the Council of the European Union. The European Council (referred to as a European Summit) is a body of the European Union which meets around four times a year. ... François-Xavier Ortoli, Romano Prodi, José Manuel Barroso and Jacques Delors The President of the European Commission is notionally the highest ranking unelected official within the European Union bureaucracy. ...


[edit] EU law precedence

It has been ruled several times by the European Court of Justice that EU law is superior to national laws, and even Member States' constitutions. Where a conflict arises between EU law and the law of a Member State, EU law takes precedence, so that the law of a Member State must be disapplied. This doctrine, known as the supremacy of EU law, emerged from the European Court of Justice in Costa v. ENEL.[8] Mr Costa was an Italian citizen opposed to nationalising the Italian energy company ENEL, because he had shares in it. He refused to pay his electricity bill in protest, and argued that nationalisation infringed EC law on the State distorting the market.[9] The Italian government believed that this was not even an issue that could be complained about by a private individual, since it was a national law decision to make. The Court ruled in favour of the government, because the relevant Treaty rule on an undistorted market was one on which the Commission alone could challenge the Italian government. As an individual, Mr Costa had no standing to challenge the decision, because that Treaty provision had no direct effect.[10] But on the logically prior issue of Mr Costa's ability to raise a point of EC law against a national government in legal proceeding before the courts in that Member State the ECJ disagreed with the Italian government. It ruled that EC law would not be effective if Mr Costa could not challenge national law on the basis of its alleged incompatibility with EC law. European Court of Justice building, Luxembourg The Court of Justice of the European Communities, usually called the European Court of Justice (ECJ), is the highest court of the European Union (EU). ... European Court of Justice building, Luxembourg The Court of Justice of the European Communities, usually called the European Court of Justice (ECJ), is the highest court of the European Union (EU). ... Flamino Costa v. ...

It follows from all these observations that the law stemming from the treaty, an independent source of law, could not, because of its special and original nature, be overridden by domestic legal provisions, however framed, without being deprived of its character as community law and without the legal basis of the community itself being called into question.[11]

However, while Community law is accepted as taking precedence to the law of Member States, not all Member States share the analysis used by the European institutions about why EU law overrides national law, when a conflict appears.[12]


Many countries' highest courts have stated that Community law takes precedence provided that it continues to respect fundamental constitutional principles of the Member State, the ultimate judge of which will be the Member State (more exactly, the court of that Member State), rather than the European Union institutions themselves[13] This reflects the idea that Member States remain the "Master of the Treaties", and the basis for EU law's effect. In other cases, countries write the precedence of Community law into their constitutions. For example, the Constitution of Ireland contains a clause that, '"No provision of this Constitution invalidates laws enacted, acts done or measures adopted by the State which are necessitated by the obligations of membership of the European Union or of the Communities..." The Constitution of Ireland (Irish: Bunreacht na hÉireann)[1] is the founding legal document of the state known today both as Ireland and as the Republic of Ireland. ...


[edit] Direct effect

Main article: Direct effect

EU law covers a broad range which is comparable to that of the legal systems of the Member States themselves.[14] Both the provisions of the Treaties, and EU regulations are said to have "direct effect" horizontally. This means private citizens can rely on the rights granted to them (and the duties created for them) against one another. For instance, an air hostess could sue her airline employer for sexual discrimination.[15] The other main legal instrument of the EU, "directives", have direct effect, but only "vertically". Private citizens may not sue one another on the basis of an EU directive, since these are addressed to the Member States. Directives allow some choice for Member States in the way they translate (or 'transpose') a directive into national law - usually this is done by passing one or more legislative acts, such as an Act of Parliament or statutory instrument in the UK. Once this has happened citizens may rely on the law that has been implemented. They may only sue the government "vertically" for failing to implement a directive correctly. An example of a directive is the Product liability Directive,[16] which makes companies liable for dangerous and defective products that harm consumers. Direct effect is a principle of European Union Law stating that European regulations have a direct effect on EU citizens and on the laws of the member states. ... Direct effect is a principle of European Union Law stating that European regulations have a direct effect on EU citizens and on the laws of the member states. ... An Act of Parliament or Act is law enacted by the parliament (see legislation). ... Statutory Instruments (SIs) are parts of United Kingdom law separate from Acts of Parliament which do not require full Parliamentary approval before becoming law. ... Product liability encompasses a number of legal claims that allow an injured party to recover financial compensation from the manufacturer or seller of a product. ...


[edit] Fundamental rights

See also: Charter of Fundamental Rights and European Convention on Human Rights

The Charter of Fundamental Rights of the European Union is a document containing human rights provisions, solemnly proclaimed by the European Parliament, the Council of the European Union, and the European Commission in December 2000. ... “ECHR” redirects here. ...

[edit] Four freedoms

The core of European Union economic and social policy is summed up under the idea of the four freedoms - free movement of goods, workers, capital and the freedom of establishment to provide services. In European Union law, the Four Freedoms (sometimes the Four Liberties) are the free movement of goods, services, capital, and labour within the internal market of the European Union. ...


[edit] Movement of goods

Under the first title of the Treaty of the European Communities one finds the provisions dealing with the free movement of goods. In the years between the two world wars, and leading into the Great Depression, governments around the world had employed vigorous policies of national protectionism. The errection of tariffs and customs duties on imports and sometimes the export of goods was widely seen as contributing to a fall in trade and hence the stalling of economic growth and development. Economists had long said, since Adam Smith and David Ricardo that the Wealth of Nations could only be strengthened by the long term lowering and abolition of barriers and costs to international trade. The abolition of all such barriers is the function of the treaty provisions. According to Article 28 EC, For other uses, see The Great Depression (disambiguation). ... This article does not cite any references or sources. ... Adam Smith FRSE (baptised June 5, 1723 O.S. / June 16 N.S. – July 17, 1790) was a Scottish moral philosopher and a pioneering political economist. ... David Ricardo (18th April, 1772–11th September, 1823), a political economist, is often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. ... An Inquiry into the Nature and Causes of the Wealth of Nations is the magnum opus of Adam Smith, published in 1776. ...

"28. Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States."

Article 29 EC states the same for exports. The first thing to note is that the prohibition is simply between member states of the European Community. One of the institutions' primary duties is the management of trade policy to third parties - other countries such as the United States, or China. For instance, the controversial Common Agricultural Policy is regulated under Title II EC, Article 34(1) authorising "compulsory coordination of national market organisations" with common European organisation. The second thing to note is that Article 31 sets out the exceptions to the prohibition on free movement of goods. The Common Agricultural Policy (CAP) is a system of European Union agricultural subsidies and programmes. ...

"31. The provisions of Articles 28 and 29 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; or the protection of industrial and commercial property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States."

So governments of member states may still justify certain trade barriers when public morality, policy, security, health, culture or industrial and commercial property might be threatened by complete abolition. One recent example of this was that during the mad cow disease crisis in the United Kingdom, France erected a barrier to imports of British beef.[17] Bovine spongiform encephalopathy (BSE or commonly mad cow disease) is a fatal, neurodegenerative disease of cattle, which infects by a mechanism that shocked biologists on its discovery in late 20th century and appears transmissible to humans. ...


[edit] Movement of workers

Freedom of movement for workers is a policy chapter of the acquis communotaire of the European Union. ...

[edit] Movement of capital

[edit] Freedom of establishment

[edit] Social chapter

The Social chapter in the European Union refers to parts of the treaty which deal with the equal treatment of men and women under Article 141 EC and the regulation of working time under the Working Time Directive. One recent piece of anti-discrimination legislation is Directive 2006/54/EC "on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation". The European Working Time Directive is a collection of regulations concerning hours of work, designed to protect the health and safety of workers. ... This article is about discrimination in the social science sense. ...


[edit] Competition law

Main article: EC competition law
The economist's depiction of deadweight loss to efficiency that monopolies cause
The economist's depiction of deadweight loss to efficiency that monopolies cause

Since the goal of the Treaty of Rome was to create a common market, and the Single European Act to create an internal market, it was crucial to ensure that the efforts of government could not be distorted by corporations abusing their market power. Hence under the treaties are provisions to ensure that free competition prevails, rather than cartels and monopolies sharing out markets and fixing prices. Competition law in the European Union is largely similar and inspired by United States antitrust. Image File history File links Monopoly-surpluses. ... Image File history File links Monopoly-surpluses. ... In economics, a deadweight loss (also known as excess burden) is a permanent loss of well being to society that can occur when equilibrium for a good or service is not Pareto optimal, (that at least one individual could be made better off without others being made worse off). ... The Treaty of Rome signing ceremony Signatures in the Treaty The Treaty of Rome, signed by France, West Germany, Italy and Benelux (Belgium, the Netherlands and Luxembourg) on March 25, 1957, established the European Economic Community (EEC). ... The Single European Act (SEA) was the first major revision of the Treaty of Rome. ... In economics, market power is the ability of a firm to alter the market price of a good or service. ... It has been suggested that this article or section be merged with antitrust. ... This article is about anti-competitive business behavior. ...


[edit] Collusion and cartels

See also: Collusion and Cartel

The Treaty of the European Communities (TEC), under Article 81 (1), prohibits Look up collusion in Wiktionary, the free dictionary. ... A cartel is a group of formally independent producers whose goal is to increase their collective profits by means of price fixing, limiting supply, or other restrictive practices. ... The Treaty of Rome signing ceremony Signatures in the Treaty The Treaty of Rome, signed by France, West Germany, Italy and Benelux (Belgium, the Netherlands and Luxembourg) on March 25, 1957, established the European Economic Community (EEC). ...

"all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between member states and which have as their object or effect the prevention, restriction or distortion of competition within the common market."

Agreements, decisions and concerted practices, known collectively as "collusion" are deemed automatically void under Article 81 (2). Article 81 (3), however, makes exceptions for collusion that could be of economic benefit.

"The provisions of paragraph 1 may, however, be declared inapplicable in the case of (i) any agreement or category of agreements between undertakings; (ii) any decision or category of decisions by associations of undertakings; (iii) any concerted practice or category of concerted practices, which contributes to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and which does not (a) impose on the undertakings concerned restrictions which are not indispensable to the attainment of these objectives; (b) afford such undertakings the possibility of eliminating competition in respect of a substantial part of the products in question.

The term "undertaking" essentially refers to businesses, but also any economic entity which carries on a trade.


[edit] Dominance and monopoly

See also: Dominance (economics) and Monopoly

Article 82 TEC is designed to prohibit abuse by very large corporations who dominate the market. In economics, dominance is a concept related to the degree of inequality, disparity, or asymmetry in the market share distribution of the firms or participants in a market. ... A monopoly (from the Greek language monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service, in other words a firm that has no competitors in its industry. ...

"Any abuse by one or more undertakings of a dominant position within the common market or in a substantial part of it shall be prohibited as incompatible with the common market insofar as it may affect trade between Member States.

This provision is then clarified through the use of some specific categories of behaviour which are deemed "abusive".

"Such abuse may, in particular, consist in (a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions; (b) limiting production, markets or technical development to the prejudice of consumers; (c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage; (d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

[edit] Mergers and acquisitions

See also: Mergers and acquisitions

Under the authority of Article 82 TEC, the European Commission was empowered not only to regulate the behaviour of large firms, who do abuse their dominant positions, or market power, but also the possibility of firms gaining the position within the market structure that enables them to behave abusively in the first place. Regulation 139/2004 deals with mergers that have a "Community dimension" and lays out a procedure whereby all "concentrations" (i.e. mergers, acquisitions, takeovers) between undertakings are subject to approval by the European Commission. The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business... In economics, market power is the ability of a firm to alter the market price of a good or service. ... In economics, market structure (also known as market form) describes the state of a market with respect to competition. ...


[edit] Public sector regulation

See also: Public services and Regulated market

Public sector industries, or industries which are by their nature providing a public service, are involved in competition law in many ways similar to private companies. Under EC law, Articles 86 and 87 create exceptions for the assured achievement of public sector service provision. Many industries, such as railways, telecommunications, electricity, gas, water and media have their own independent sector regulators. These government agencies are charged with ensuring that private providers carry out certain public service duties in line of social welfare goals. Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. ... A regulated market is the provision of goods or services that is regulated by a government appointed body. ... ...


[edit] References

  1. ^ Case 26/62 Van Gend en Loos v. Nederlanse Administratie der Belastingen
  2. ^ Gargani, Giuseppe (2007). Intellectual property rights: criminal sanctions to fight piracy and counterfeiting. European Parliament. Retrieved on 2007-06-30.
  3. ^ see Art.2 TEC; "The Community shall have as its task, by establishing a common market and an economic and monetary union and by implementing common policies or activities..."[1]
  4. ^ Art. 220 TEC
  5. ^ see Art. 228 TEC
  6. ^ Craig and de Burca (2003) p.98
  7. ^ Case 6/64, Falminio Costa v. ENEL [1964] ECR 585, 593
  8. ^ now found in Art. 86 and Art. 87
  9. ^ "But this obligation does not give individuals the right to allege, within the framework of community law... either failure by the state concerned to fulfil any of its obligations or breach of duty on the part of the commission."
  10. ^ Case 6/64, Falminio Costa v. ENEL [1964] ECR 585, 593
  11. ^ in the U.K. see, Factortame Ltd. v Secretary of State for Transport (No. 2) [1991] 1 AC 603; in Germany see Solange II (Re Wuensche Handelsgesellschaft, BVerfG decision of 22 October 1986 [1987] 3 CMLR 225,265); in Italy see Frontini v. Ministero delle Finanze [1974] 2 CMLR 372; in France see, Raoul George Nicolo [1990] 1 CMLR 173
  12. ^ see especially, Solange II (Re Wuensche Handelsgesellschaft, BVerfG decision of 22 October 1986 [1987] 3 CMLR 225,265)
  13. ^ see Article 3 TEU f