How is the EU Governed?

As per the Maastricht Treaty of 1991, the Union's political scene is divided into Three pillars of the European Union; the European Community, which is the Supranational element, and two primarily intergovernmental elements; the Common Foreign and Security Policy and Police and Judicial Co-operation in Criminal Matters. It should be noted that the latter two have supranational elements, although not as strong as in the Community.

The powers afforded to the Union fall within one of these pillars. More sensitive areas are pooled into the primarily intergovernmental pillars. The Union rarely has exclusive control over an area even in the Community pillar. (see Pillars of the European Union)

Subdivisions

The Union is composed of its twenty-seven member states. They retain all powers not explicitly handed to the Union, except those handed to further subdivisions within member-states, such as in the Germany and Belgium|Belgian federations. Enlargement of the Union's membership is a major political issue, with division over how far the bloc should expand. While some see it as a major policy instrument aiding the Union's development, some fear over-stretch and dilution of the Union. ( see EP Draft report on division of powers and Q&A: EU Enlargement)

Some member states are outside certain areas of the European Union, for example the Economic and Monetary Union is composed of only 15 of the 27 members and the Schengen Agreement currently includes only 21 of the EU members. However the majority of these are in the process of joining these blocs. A number of countries outside the Union are involved in certain EU activities such as the euro, Schengen, single market or defence. Even though some countries, such as those in the European Economic Area, have a high degree of integration, they have no representation in EU institutions. (see ECB: Introduction: Euro area and Schengen acquis and its integration into the Union and European Economic Area and EU Battlegroups)

Institutions of the European Union

The primary institutions of the European Union are the European Commission, the European Council, the Council of the European Union (Council) and the European Parliament. The first two are a form of executive branch;

The Commission exercises control over Agencies of the European Union, proposes and drafts legislation and ensures application of the law. It is composed of one European Commissioner per member-state, although are supposed to remain above national politics, and one of their number leads the body as the President of the European Commission. Each Commissioner is given a portfolio with a related Directorate-General (DG). In simplified terms, one could compare the roles of the President, Commissioners and DGs as the Union's Prime Minister, Minister (government) and Ministry (government department). However there are important differences in powers. (see European Commission)

The European Council has no official powers in the treaties, however it is composed of the Head of State of the Union's member states and therefore hold the considerable power not delegated to the Union's supranational institutions. The body also appoints the President of the Commission (based on the Parliament's elections) as well as the High Representative for the Common Foreign and Security Policy. In simplified terms along the lines above, the role of the council could be compared to that of a head of state. (see European Council)

The Council and Parliament form the legislative branch of the Union. The Council is formed of national ministers while the Parliament is directly elected. Depending upon the area concerned their relationship differs with sensitive areas under greater control of the national ministers. In most cases, where the matter comes under the supranational European Community, both chambers have equal powers to pass, amend or reject legislation. (see Council of the European Union and European Parliament)

Treaties and law

The Union is based upon its treaties; they form its constitutional law, institutions, powers and so forth. There have been numerous treaties each amending and building upon the previous, transferring more powers to the Union and to the Community. (see Treaties and Law)

Laws made by the Union supersede those made by national governments. There are three forms of binding legislative acts the Union can pass: a European Union regulation, which is a directly applicable law; a European Union directive, which constitutes a framework of objectives which a national law must be based on to meet the stated aims; and a European Union decision which applies only to a particular issue.

In passing laws, institutions use numerous European Union legislative procedure; depending upon which is used, the balance of power between the Council and Parliament is altered. The most common is the Codecision procedure which gives equal position to both institutions.

References

The EU at a glance