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Course title: European Institutional Systems Teacher: Emmanuel POTIER (emmanuel.potier@pioux-potier.

com) COURSE DESCRIPTION: CONTENT This course gives an overview of the major institutions and decision-making procedures of the European Union. With respect to the institutions, the course will cover the main institutions involved in the decision-making processes: the European Commission, the Council of the European Union, the European Council, the European Parliament, the Cour of Justice of the European Union, the European Central Bank, the Court of Auditors as well as advisory bodies such as the European Committee of the Regions and the European Economic and Social Committee. This course will analyse the decision-making procedures as well as the procedure used to adopt the budget and modify the treaty. AIMS The aims of this course are: To give an overview of the main institutions involved in European decision-making To analyse the way in which each of these institutions works To analyse the way in which each of these institutions contribute to European decision-making to analyse the decision-making procedures To analyse the efficiency of these procedures. INTENDED LEANING OUTCOME: After completing this course, the students should be able to: Give a detailed description of each of the institutions involved in European decisionmaking and the way in which they contribute to European decision-making; Give a detailed description of each of the procedures used in European decisionmaking Assess the power of a member state TEACHING AND LEARNIN ACTIVITIES: Lectures: 12 hours Self tuition: 12 hours Total student effort: 24 hours ASSESSMENT: oral exam on completion of a teachin period. BIBLIOGRAPHY: - Consolidated version on the Treaty of European Union (TEU): http://eur-lex.europa.eu/LexUriServ/LexUriServ.do? uri=OJ:C:2010:083:0013:0046:EN:PDF - Consolidated version on the Treaty of the Functioning of European Union (TFEU): http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?

uri=OJ:C:2010:083:0047:0200:EN:PDF European institutional systems The European Union is a unique economic and political partnership between 27 European countries. It has delivered half a century of peace, stability, and prosperity, helped raise living standards, launched a single European currency, and is progressively building a single Europe-wide market in which people, goods, services, and capital move among Member States as freely as within one country. The EU was created in the aftermath of the second world war. The first steps were to foster economic cooperation: countries that trade with one another are economically interdependent and will thus avoid conflict. Since then, the union has developed into a huge single market with the euro as its common currency. What began as a purely economic union has evolved into an organisation spanning all areas, from development aid to environmental policy. The EU actively promotes human rights and democracy and has the most ambitious emission reduction targets for fighting climate change in the world. Thanks to the abolition of border controls between EU countries, it is now possible for people to travel freely within most of the EU. It has also become much easier to live and work in another EU country. The signing of the Community Treaties (ECSC in 1951, EEC and Euratom in 1957) marked the starting point for over 50 years of European treaties. The 'founding' Treaties establishing the European Communities and the European Union, together with the major amending Treaties, constitute the primary legislation; in other words, they are the supreme law of the Union and of the European Communities. Most of the rules are included into two treaties: - Consolidated version of The Treaty on European Union - Consolidated version of The Treaty of the Functioning of the European Union Chapter 1- The European Union Section 1- The values and objectives of the European Union A- The values of the Union The Union is founded on the values of respect for human dignity, liberty, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. These values are common to the Member States. Moreover, the societies of the Member States are characterised by pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men. These values play an important role, especially in two specific cases. Firstly, under the procedure for accession, any European State wishing to become a member of the Union must respect these values in order to be considered eligible for admission. Secondly,

failure by a Member State to respect these values may lead to the suspension of that Member State's rights deriving from membership of the Union.

B- The objectives of the Union These objectives must guide the Union in the defining and implementation of all its policies. The main objectives of the Union are now to promote peace, the Union's values and the well-being of its peoples. These general objectives are supplemented by a list of more detailed objectives: an area of freedom, security and justice without internal frontiers ; an internal market where competition is free and undistorted; sustainable development, based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment; the promotion of scientific and technological advance; the combating of social exclusion and discrimination, and the promotion of social justice and protection, equality between women and men, solidarity between generations and protection of the rights of the child; the promotion of economic, social and territorial cohesion, and solidarity among Member States. In addition, the Union respects cultural and linguistic diversity and ensures that Europe's cultural heritage is safeguarded and enhanced. The EU promotes its values and interests in its relations with the rest of the world: peace; security; sustainable development of the Earth; solidarity and mutual respect among peoples; free and fair trade; eradication of poverty; protection of human rights (in particular the rights of the child); development of international law (respect for the principles of the United Nations Charter).

Section 2- The EU enlargement from 6 to 27 A- From 6 to 27 The Enlargement of the European Union is the process of expanding the European Union (EU) through the accession of new member states. This process began with the Inner Six, who founded the European Coal and Steel Community (the EU's predecessor) in 1952. Since then, the EU's membership has grown to twenty-seven with the most recent

expansion to Bulgaria and Romania in 2007. Currently, accession negotiations are under way with several states. The process of enlargement is sometimes referred to as European integration. Croatia, Iceland, Macedonia,[11] Montenegro and Turkey are all official candidates states while Albania and Serbia have applied for membership. Bosnia and Herzegovina has concluded an association agreement and is preparing an application while Kosovo is beginning negotiations for an agreement. To join the European Union, a state needs to fulfil economic and political conditions called the Copenhagen criteria (after the Copenhagen summit in June 1993), which require a stable democratic government that respects the rule of law, and its corresponding freedoms and institutions. According to the Maastricht Treaty, each current member state and the European Parliament must agree to any enlargement. The languages of the European Union are languages used by people within the member states of the European Union. They include the twenty-three official languages of the European Union along with a range of others. The EU asserts that it is in favour of linguistic diversity and currently has a European Commissioner for Multilingualism, Androulla Vassiliou. In the European Union, language policy is the responsibility of member states and EU does not have a common language policy; European Union institutions play a supporting role in this field, based on the principle of "subsidiarity", they promote a European dimension in the member states' language policies. The EU encourages all its citizens to be multilingual; specifically, it encourages them to be able to speak two languages in addition to their mother tongue.[citation needed] Though the EU has very limited influence in this area as the content of educational systems is the responsibility of individual member states, a number of EU funding programmes actively promote language learning and linguistic diversity.[4] The most widely spoken mother tongue in the EU is German, while 51% of adults can understand English. French is an official language common to the three cities that are political centres of the Union: Brussels (Belgium), Strasbourg (France) and Luxembourg city (Luxembourg), while Catalan, Galician and Russian are the most widely used non-recognized languages in the EU. B- Main historical aspects of european construction The creation of the first "Community", the European Coal and Steel Community (ECSC), marked the point of departure of over 50 years of European treaties. No fewer than 50 treaties were signed between 1951 (ECSC Treaty) and 2001 (Treaty of Nice). This accumulation of treaties has led to a complex constitutional situation that is difficult for non-experts to understand. These successive treaties did not simply amend the original text but also gave rise to other texts that were combined with it. The far-reaching reform undertaken by the European Commission and completed by the Heads of State and Government in October 2004 in the form of a constitutional treaty is a response to the urgent need to consolidate the existing European treaties in a single text. European construction is a dynamic process. The Union developed progressively by

relying on partial interdependence that was progressively extended from the economy to political domains. 1) Post-war diplomatic Europe Initially, European cooperation was little more than the continuation of certain military alliances dating from the war. For example, the Treaty of Western Union of March 1948 prolonged the alliance of France, Great Britain and Belgium. This alliance was widened and transformed into the Western European Union (WEU). Almost at the same time, European economic cooperation got under way with the creation in April 1948 of the Organisation for European Economic Cooperation, which was to become the Organisation for Economic Cooperation and Development (OECD). European policy was born shortly afterwards with the creation of the Council of Europe (all languages available), which extended European cooperation to a wide range of political, technical, social and economic activities. However, broad though this cooperation was, it remained an interstate construction. 2) Supranational europe: the establishment of the Communities (1951-1965) Supranational Europe corresponds to a new concept of Europe formulated by Robert Schuman in his famous declaration of 9 May 1950. This so-called functionalist approach was designed to create de facto solidarity between the Member States. In the loose European conglomeration, this initiative paved the way to the creation of a hard core of states, "the Europe of the Six", and the birth of the European Communities. The European Coal and Steel Community - ECSC (1951-2002) : The first fruit of the new drive towards integration was the creation of the European Coal and Steel Community, with the aim of organising free movement of coal and steel and free access to sources of production. This Community brings together six countries France, Germany, Italy and the Benelux countries. The Member States were subject to supranational bodies whose powers were limited to the domains of coal and steel but which were entitled, in these domains, to take decisions and to impose them. The High Authority and the Council of Ministers were responsible for decision-making, while the Parliamentary Assembly basically played an advisory role. The Treaty of Paris created the ECSC for a limited period of 50 years. Hence the ECSC expired on 23 July 2002. The European Economic Community (EEC) and the European Atomic Energy Community, known as Euratom (1957): After the failure of the European Defence Community (EDC) in 1954, the extension of the ECSC was to remain confined to the economy with the establishment of the European Economic Community and the European Atomic Energy Community, better known as Euratom. These two Communities were created by the famous "Treaties of Rome" signed in March 1957. The EEC brought together the six countries which were already members of the ECSC. Its objective was to integrate trade with a view to economic expansion. It created a common market, a customs union and provided for common policies (agriculture, trade and transport). Euratom consists of exactly the same Member States. Its objective is to contribute to the formation and development of Europe's nuclear industries, so that all the Member States can benefit from the development of atomic energy, and to ensure security of supply. At the same time, the Treaty guarantees high safety standards for the public and prevents nuclear materials from being diverted for uses for which they are not intended.

Finally, three distinct communities coincided as from 1957. The three communities had certain common institutions, but others involved a duplication of effort and their unification became necessary at this stage. The Treaty of Brussels (1965) merged the executive powers of the three Communities into a single "Commission of the European Communities" and created a single Council replacing the councils of the three Communities. 3) The crises and the resistance of the sovereign states (1961-1970) During this period, there was a genuine calling into question of the basic principles of European construction. The sovereign states' resistance to European construction intensified. The advocates of a Europe of nations rejected the supranational concept of the Communities. a- The failure of the Fouchet Plan (1961) Despite the failure of the European Defence Community, the question of political cooperation between Member States once again came to the forefront. In 1961 an intergovernmental committee, chaired by Christian Fouchet, a French diplomat, was instructed to prepare concrete proposals with a view to promoting political union. The committee eventually proposed creating a union whose objective was a common foreign policy and a common defence policy. The negotiations failed on three objections: uncertainty as to the place of the United Kingdom, disagreement on the issue of a European defence system aiming to be independent of the Atlantic Alliance, and the excessively intergovernmental nature of the institutions proposed, which was likely to undermine the supranational aspect of the existing Community institutions. b- The empty chair crisis (1965) As from July 1965, in opposition to some Commission proposals addressing, among other things, the financing of the Common Agricultural Policy, France boycotted the meetings of the Council and insisted on a political agreement concerning the role of the Commission and majority voting if it were to participate again. This episode in European history is known as the "empty chair crisis". This crisis was resolved thanks to the Luxembourg compromise (January 1966), which states that "when vital interests of one or more countries are at stake members of the Council will endeavour to reach solutions that can be adopted by all while respecting their mutual interests." 4) The first enlargements and the 'relaunch' (1970-1985) During this period the three Communities were enlarged with the accession of new Member States for the first time and the Community received a new breath of life thanks to concrete developments. The United Kingdom joined the European Communities in January 1973, accompanied by Denmark and Ireland. Greece joined in 1980, followed by Spain and Portugal in 1986. Community construction continued during the 1970s, but it was accompanied by two major world crises: the dollar crisis and the oil crisis. These crises forced the Community to reconsider its future. A wide range of tasks was completed. The most important include the Davignon report (1970), the Tindemans report (1975), the report of the "Three Wise Men" Committee (1978), the Spinelli project (1984), and the White Paper on the Internal Market (1985). In parallel with these reflections, which already foreshadowed the Single Act, Community construction forged ahead with such developments as:

the affirmation of the role of the meetings of the Heads of State and Government, which led to the creation, as from 1974, of "European Councils", meeting three times a year; the election of the European Parliament by direct universal suffrage as from 1979; the application of Article 235 of the EC Treaty to extend the EEC's domains of intervention; the creation in 1978 of the European Monetary System (EMS), based on the existence of a common unit of account, the ECU, in order to resolve the problem of monetary instability; the Treaties of 1970 and 1975 and the decision of 1985 concerning the budgetary and financial provisions made it possible to reach agreement on Community finances (system of own resources and execution of the budget). 5) Single act: the first major reforms (1986) Progressively, the need for far-reaching reform became evident. It emerged that it would indeed be very difficult to complete the internal market on the basis of the existing treaties, notably because of their institutional rules, which required unanimity within the Council in order to harmonise legislation. The Single Act proposed a certain number of reforms whose aim was to facilitate harmonisation. It enshrined as its prime objective the completion of the single market on 1 January 1993. It also provided for the extension of qualified majority voting, the growth of the role of the European Parliament (creation of a cooperation procedure) and the expansion of Community powers, notably in the economic and monetary fields, the environment and research. It formalised the existence of the European Council and enshrined the practice of cooperation in the field of foreign policy. 6) The treaty of maastricht, the birth of the european union (1992) The Treaty of Maastricht is important because it marks the changeover to the political dimension of European construction. It brought the European Union, the Communities, common foreign and security policy (CFSP), and cooperation in the fields of justice and home affairs (JHA) under the same umbrella. This Treaty is the basis of the famous "pillar structure". The first pillar consists of the pre-existing Communities and operates thanks to the institutions on the basis of the so-called Community method, in other words the joint exercise of national sovereignty. The second pillar consists of CFSP (Title V of the Treaty on European Union) and the third pillar consists of JHA (Title VI of the Treaty on European Union). With the Treaty of Maastricht, the EEC was renamed, becoming the European Community (EC). This reflects the signatories' determination to extend Community powers to noneconomic areas. In the Community domain the main innovations were the launching of economic and monetary union, which was fleshed out by the decision taken in 1998 to establish a monetary union (euro), the establishment of European citizenship, the adoption of new policies (education, culture), and the application of the principle of subsidiarity to regulate the exercise of powers. Finally, a social protocol extends Community responsibilities in the social field. At institutional level the role of the European Parliament was enhanced thanks to the establishment of a codecision procedure in

certain areas and Parliament's involvement in the procedure for confirming the Commission. This progress was not possible without some degree of differentiation between Member States. Hence, the United Kingdom did not sign the social protocol and remained free to decide on its participation in the euro, as did Denmark. The ratification of the Treaty was no easy matter - proof that this Treaty was a decisive step towards a Europe with a political dimension. 7) The treaty of amsterdam (1997) The years following the entry into force of the Treaty on the European Union were marked by the enlargement of the Union to include Austria, Finland and Sweden in 1995. The Treaty of Amsterdam was a major step forward. It increased the powers of the Union. The focus was on a high level of employment and the coordination of employment policies. The Community method now applies to important domains that were previously subject to the third pillar, such as asylum, immigration, crossing external borders, measures to combat fraud and customs cooperation. For the first time, the Treaty of Amsterdam contained provisions allowing a certain number of states to take advantage of common institutions to organise enhanced cooperation. Besides, this Treaty reinforced the powers of the Parliament by extending the codecision procedure and its supervisory powers. It also provided for the opening of new negotiations paving the way to the institutional reforms necessary with a view to enlargement (composition of the Commission, the Parliament and vote at the Council) so as to preserve the democratic character and the effectiveness of a construction which would include more than 20 members. Hence it was only after the signature of the Treaty that it was possible to extend the enlargement process to the Central and Eastern European Countries as from 1998. 8) The treaty of nice (2001) The Treaty of Nice was essentially devoted to the "leftovers" of Amsterdam, i.e. the institutional problems linked to enlargement which were not resolved in 1997. It dealt with the make-up of the Commission, the weighting of votes in the Council and the extension of the areas of qualified majority voting. It simplified the rules on use of the enhanced cooperation procedure and made the judicial system more effective. On the other hand, the Charter of Fundamental Rights of the European Union, prepared by a Convention, was proclaimed during the European Summit at Nice by the Presidents of the European Parliament, the Council and the Commission. As from the Treaty of Nice, it became obvious that the Union's architecture had to be defined in a global and stable manner so as to enable it to function properly after enlargement. It was this movement which led to the creation of the European Convention and the preparation of the Constitution. 9) The treaty establishing a constitution for Europe (2004) The European Constitutional Treaty, often called the Constitution, aimed to repeal and replace with a single text all the existing treaties with the exception of the Euratom Treaty. This text consolidated 50 years of European treaties. Apart from this work of consolidation and simplification of the texts, the Constitution also introduced numerous innovations such as: attribution of legal personality to the Union, clear definition of powers, the possibility of a Member State's withdrawing from the Union, the incorporation of the Charter of Fundamental Rights, simplification of the Union's instruments of action, creation of the European Foreign Minister, the formal institutionalisation of the European Council, which will be chaired by an elected president

for a period of two and a half years, the definition of a new system of qualified majority voting at the Council, various policy modifications, the disappearance of the pillar structure, the extension of qualified majority voting at the Council and the ordinary legislative procedure (codecision). The Constitutional Treaty was signed in October 2004. To enter into force, the Treaty establishing the Constitution had to be ratified by all the Member States in accordance with each one's constitutional rules, namely either parliamentary ratification or referendum. Following the difficulties in ratifying the Treaty in some Member States, the Heads of State and Government decided, at the European Council meeting on 16 and 17 June 2005, to launch a "period of reflection" on the future of Europe. 10) The treaty of Lisbon (2007) At the European Council meeting on 21 and 22 June 2007, European leaders reached a compromise and agreed to convene an IGC to finalise and adopt, not a Constitution, but a reform treaty for the European Union. The final text of the treaty, drawn up by the IGC, was approved at the informal European Council in Lisbon on 18 and 19 October. The Treaty of Lisbon was signed by the Member States on 13 December 2007. Introduction: The Treaty of Lisbon meets the need to reform the structure of the EU and the way in which it functions. Successive EU enlargements have increased the number of Member States to 27. It was therefore necessary to adapt the way the European institutions function and how decisions are taken. In addition, the Treaty of Lisbon has enabled several EU policies to be reformed. It has redefined and strengthened actions taken at European level. a- differences with the treaty establishing a constitution for europe The Treaty of Lisbon is broadly inspired by the Constitutional Treaty. The majority of the institutional and policy reforms envisaged in the Constitution are included in the Treaty of Lisbon, but presented in a different form. The Constitutional Treaty was intended to repeal the founding Treaties of the EU and replace them with a single text: the Constitution for Europe. In contrast, the Treaty of Lisbon does not replace the founding Treaties; it only amends them as did the Amsterdam and Nice Treaties previously. The Treaty of Lisbon therefore takes the form of a series of amendments to the founding Treaties. This change in form does not affect matters at the judicial level, but it does have a significant effect on a symbolic level and on policy plans. The idea of a European Constitution has been abandoned and European law is still established by international Treaties. Therefore, the EU is still based on two founding Treaties: the Treaty on European Union and the Treaty establishing the European Community. However, the Treaty establishing the European Community is renamed the Treaty on the Functioning of the EU. b- the contributions of the treaty of lisbon The Treaty of Lisbon: reforms the EU institutions and improves the EU decision-making process; strengthens the democratic dimension of the EU;

reforms the internal policies of the EU; strengthens the external policies of the EU. Institutional issues The reform of the EU institutions was necessary due to the increase in the number of Member States. Accordingly, the Treaty of Lisbon amends the rules concerning the composition of the Commission, the European Parliament, the Committee of the Regions and the European Economic and Social Committee. In addition, the Treaty of Lisbon reforms the decision-making process within the Council. It effectively abolishes the old system of weighted voting and introduces a new definition of qualified majority voting for decisions. The Treaty of Lisbon also creates two new functions in the EU institutional architecture: the President of the European Council; the High Representative for Foreign Affairs and Security Policy. Furthermore, the Treaty of Lisbon strives to clarify and improve the functioning of the EU. It abolishes the old pillar structure and introduces a new distribution of competences between the EU and Member States. The Treaty of Lisbon also simplifies the legislative procedures and the types of legal acts adopted in the EU. Moreover, the Treaty of Lisbon makes the functioning of the EU more flexible. It introduces several institutional clauses aimed at facilitating European integration in certain policy areas. Establishing enhanced cooperation between Member States is also made easier. The strengthening of European democracy One of the aims of the Lisbon Treaty is to strengthen European democracy, particularly in order to improve the legitimacy of decisions and to bring the EU and its citizens closer together. Consequently, the powers of the European Parliament are increased considerably. Similarly, the Treaty of Lisbon gives national parliaments in the EU a larger role. Furthermore, the Treaty of Lisbon creates the citizens initiative, enabling citizens to participate more actively in the building of Europe. Internal policies of the EU One of the most significant changes concerns the European area for freedom, security and justice. The Treaty of Lisbon increases EU powers in the areas of: border control, asylum and immigration; judicial cooperation in civil matters; judicial cooperation in criminal matters; police cooperation. Furthermore, the Treaty of Lisbon clarifies EU powers in the area of economic, social and energy policies. It also sets as a new objective the creation of a European Research Area. External policies of the EU EU action at international level is increased. Above all, the Treaty of Lisbon gives greater coherence and visibility to the EUs Common Foreign and Security Policy. The EU therefore acquires legal personality, enabling it to negotiate and to be a contracting party in international Treaties. In addition, the EU is henceforth represented globally by the

High Representative for Foreign Affairs and Security Policy. Furthermore, a section of the founding Treaties is now devoted to the Common Security and Defence Policy. The long-term objectives aim at establishing a Common European Defence. Section 3- The institutions of the European Union The EU therefore acquires legal personality, enabling it to negotiate and to be a contracting party in international Treaties. The European Parliament The European Council The Council of the European Union The European Commission The Court of Justice of the European Union (CJEU) The European Central Bank The Court of Auditors

Section 4- Division of competences within the European Union

INTRODUCTION The Treaty of Lisbon clarifies the division of competences between the European Union (EU) and Member States. It introduces a precise classification for the first time in the founding Treaties, distinguishing between three main types of competence: exclusive competences, shared competences and supporting competences. This attempt at clarification does not result in any notable transfer of competence. However, this reform is important and vital for the proper functioning of the EU. Several conflicts of competence have emerged in the past between the EU and Member States. Henceforth, the boundaries between the competences of each are clearly defined. In addition, this transparency facilitates the application of the fundamental principles relating to the control and exercise of these competences. ABOLITION OF THE PILLARS OF THE EU One of the most notable changes resulting from the Treaty of Lisbon concerns the abolition of the three-pillar structure of the EU. These pillars were: the European Community; the Common Foreign and Security Policy (CFSP); police and judicial cooperation in criminal matters. Within this structure, several types of competence were superimposed. Acts adopted

under the framework of the first pillar were adopted in accordance with the EUs legislative procedures. In contrast, the other two pillars were based on intergovernmental cooperation between Member States. The Treaty of Lisbon puts an end to this complicated structure. The European Community disappears. It is replaced by the EU, which is endowed with legislative procedures enabling it to exercise the competences conferred upon it to the full extent. Moreover, the EU also acquires legal personality, which was previously reserved for the old Community. It is therefore able henceforth to conclude treaties in the fields coming within its area of competence. THE THREE MAIN TYPES OF COMPETENCE The Treaty on the Functioning of the EU (TFEU) distinguishes between three types of competence and draws up a non-exhaustive list of the fields concerned in each case: exclusive competences (Article 3 of the TFEU): the EU alone is able to legislate and adopt binding acts in these fields. The Member States role is therefore limited to applying these acts, unless the Union authorises them to adopt certain acts themselves; shared competences (Article 4 of the TFEU): the EU and Member States are authorised to adopt binding acts in these fields. However, Member States may exercise their competence only in so far as the EU has not exercised, or has decided not to exercise, its own competence; supporting competences (Article 6 of the TFEU): the EU can only intervene to support, coordinate or complement the action of Member States. Consequently, it has no legislative power in these fields and may not interfere in the exercise of these competences reserved for Member States. SPECIAL COMPETENCES The EU has special competences in certain fields: the coordination of economic and employment policies (Article 5 of the TFEU): the EU is responsible for ensuring the coordination of these policies. It is required to define the broad direction and guidelines to be followed by Member States; the CFSP (Article 24 of the Treaty on EU): the EU has competence in all fields connected with the CFSP. It defines and implements this policy via, among others, the President of the European Council and the High Representative of the Union for Foreign Affairs and Security Policy, whose roles and status have been recognised by the Treaty of Lisbon. However, the EU may not adopt legislative acts in this field. In addition, the Court of Justice of the EU does not have competence to give judgment in this area; the flexibility clause (Article 352 of the TFEU): this clause enables the EU to act beyond the power of action conferred upon it by the Treaties if the objective pursued so requires. However, this clause is framed by a strict procedure and by certain restrictions in terms of its application. THE EXERCISE OF COMPETENCES The exercise of Union competences is subject to three fundamental principles which appear in Article 5 of the Treaty on EU. The definition of EU competences greatly facilitates the proper application of these principles:

the principle of conferral: the Union has only the competences conferred upon it by the Treaties; the principle of proportionality: the exercise of EU competences may not exceed what is necessary to achieve the objectives of the Treaties; the principle of subsidiarity: for shared competences, the EU may intervene only if it is capable of acting more effectively than the Member States; TRANSFER OF COMPETENCES The current division of competences between the EU and Member States is not set in stone. However, the reduction or extension of EU competences is a delicate matter which requires the consent of all Member States and necessitates a revision of the Treaties. Section 5- The principle of cooperation between the institutions Cooperation between the institutions is essential to the proper functioning of the European Union. Indeed, the Court of Justice has recognised the duty of sincere cooperation as a general principle of Community law. While sincere cooperation is not explicitly mentioned in the Treaties, this does not affect its status as a requirement with which all Member States and European institutions must comply. The principle of "sincere cooperation" stems from Article 4 of the Treaty on European Union (TEU) in the context of relations between the European Union (EU) and Member States and Article 13 of the TEU in the context of relations between the EU institutions. In substance, this Article states that the Member States must take all appropriate measures to fulfil their obligations arising out of the Treaty and do nothing detrimental to the proper functioning of the European Union. Cooperation between the Member States and the EU institutions Member States have a duty of sincere cooperation with the EU institutions. Accordingly, they are asked to support EU activities and not to hinder their proper functioning. This involves, for example: punishing infringements of EU law as strictly as infringements of national law; cooperating with the Commission in procedures linked to the monitoring of compliance with EU law, e.g. by sending the documents required in accordance with the rules; making good any damage caused by infringements of EU law; not unnecessarily hindering the internal operation of the European institutions (for example, by taxing reimbursements of the transport costs of MEPs travelling to Brussels and Strasbourg); cooperating with the Commission in the event of inaction on the part of the Council, so as to enable the EU to fulfil its responsibilities (for example, to fulfil urgent needs concerning the conservation of certain fish stocks). Article 4 of the TEU invites the EU and the Member States to respect and assist each other in carrying out tasks which flow from the Treaties. Cooperation between the institutions In accordance with Article 13 of the TEU, the EU institutions are required to comply with

the principle of mutual sincere cooperation. They are: the the the the the the the European Parliament; European Council; Council; European Commission; Court of Justice of the European Union; European Central Bank; Court of Auditors;

This principle is applicable in accordance with the case law of the Court of Justice of the EU. The principle of interinstitutional cooperation can also be found in Article 249 of the Treaty on the Functioning of the European Union (TFEU), which lays down that the Council and the Commission must consult each other and settle by common accord their methods of cooperation. Interinstitutional cooperation takes place in various ways, including: exchanges of letters between the Council and the Commission; interinstitutional agreements; joint declarations of the three institutions. Section 6- European Union Law A- Sources of European Union law There are three sources of European Union law: primary law, secondary law and supplementary law. The main sources of primary law are the Treaties establishing the European Union. Secondary sources are legal instruments based on the Treaties and include unilateral secondary law and conventions and agreements. Supplementary sources are elements of law not provided for by the Treaties. This category includes Court of Justice case-law, international law and general principles of law. There are three sources of European Union (EU) law: primary sources, secondary sources and supplementary law. Sources of primary law Primary sources, or primary law, come mainly from the founding Treaties, namely the Treaty on the EU and the Treaty on the Functioning of the EU. These Treaties set out the distribution of competences between the Union and the Member States and establishes the powers of the European institutions. They therefore determine the legal framework within which the EU institutions implement European policies. Moreover, primary law also includes: the amending EU Treaties; the protocols annexed to the founding Treaties and to the amending Treaties; the Treaties on new Member States accession to the EU. Sources of secondary law

Secondary law comprises unilateral acts and agreements. Unilateral acts can be divided into two categories: those listed in Article 288 of the Treaty on the Functioning of the EU: regulations, directives, decisions, opinions and recommendations; those not listed in Article 288 of the Treaty on the Functioning of the EU, i.e. "atypical" acts such as communications and recommendations, and white and green papers. Convention and Agreements group together: international agreements, signed by the EU and a country or outside organisation; agreements between Member States; and interinstitutional agreements, i.e. agreements between the EU institutions. Sources of supplementary law Besides the case law of the Court of Justice, supplementary law includes international law and the general principles of law. It has enabled the Court to bridge the gaps left by primary and/or secondary law. International law is a source of inspiration for the Court of Justice when developing its case law. The Court cites written law, custom and usage. General principles of law are unwritten sources of law developed by the case law of the Court of Justice. They have allowed the Court to implement rules in different domains of which the treaties make no mention. B- Precedence of European law According to the precedence principle, European law is superior to the national laws of Member States. The precedence principle applies to all European acts with a binding force. Therefore, Member States may not apply a national rule which contradicts to European law. The precedence principle guarantees the superiority of European law over national laws. It is a fundamental principle of European law. As with the direct effect principle, it is not inscribed in the Treaties, but has been enshrined by the Court of Justice of the European Union (CJEU). Definition The CJEU enshrined the precedence principle in the Costa versus Enel case of 15 July 1964. In this case, the Court declared that the laws issued by European institutions are to be integrated into the legal systems of Member States, who are obliged to comply with them. European law therefore has precedence over national laws. Therefore, if a national rule is contrary to a European provision, Member States authorities must apply the European provision. National law is neither rescinded nor repealed, but its binding force is suspended. The Court later clarified that the precedence of European law is to be applied to all national acts, whether they were adopted before or after the European act in question. With European law becoming superior to national law, the principle of precedence therefore ensures that citizens are uniformly protected by a European law assured across all EU territories.

Scope of the principle The precedence of European law over national laws is absolute. Therefore, it applies to all European acts with a binding force, whether emanating from primary or secondary legislation. In addition, all national acts are subject to this principle, irrespective of their nature: acts, regulations, decisions, ordinances, circulars, etc), irrespective of whether they are issued by the executive or legislative powers of a Member State. The judiciary is also subject to the precedence principle. Member State case-law should also respect EU caselaw. The Court of Justice has ruled that national constitutions should also be subject to the precedence principle. It is therefore a matter for national judges not to apply the provisions of a constitution which contradict European law. Responsibility for ensuring compliance with the principle As for the direct effect principle, the Court of Justice is responsible for ensuring the precedence principle is adhered to. Its rulings impose penalties on Member States who infringe it, on the basis of the various remedies provided for by the founding Treaties, notably proceedings for failure to fulfil an obligation. It is also the task of national judges to ensure the precedence principle is adhered to. Should there be any doubt regarding the implementation of this principle, judges may make use of the reference for a preliminary ruling procedure. In its judgment of 19 June 1990 (Factortame), the Court of Justice indicated that national courts, as part of a preliminary ruling on the validity of a national law, must immediately suspend the application of this law until such time as the Court of Justice gives its recommended solution and the national court gives its ruling on the substance of the issue. Section 7- Membership of the European Union A- The accession process for a new Member State Legal basis According to Article 49 of the Treaty on European Union (TEU), which constitutes the legal basis for any accession, the EU is open to all European countries. However, in order to join the EU, the applicant country must adhere to the principles of Article 6(1) TEU which all the Member States subscribe to and on which the EU is based: freedom, democracy, respect for human rights and fundamental freedoms and the rule of law. Under Article 49 of the TEU, any European country wishing to join the EU shall apply to the Council which, before taking a decision, must consult the Commission and ask the European Parliament for a favourable opinion adopted by an absolute majority of its members. The Council then makes its decision unanimously. The Member States and the applicant country come to an agreement on the conditions for accession and adaptation of the treaties and institutions which are entailed by accession. This agreement, or Accession Treaty, is subject to ratification by all the signatory States. Accession process All applications for accession are subject to an opinion issued by the Commission and a

decision taken by the Council. When the status of an applicant State has been granted to a country, accession negotiations are not necessarily opened immediately. Prior to this, the country must meet a certain number of conditions. All countries wishing to join the EU must abide by the accession criteria or the Copenhagen criteria, on which the Commission's opinion on any application for accession is based. These criteria were laid down at the European Council meeting in Copenhagen in 1993 and added to at the European Council meeting in Madrid in 1995. They are as follows: political criteria: stability of the institutions safeguarding democracy, the rule of law, human rights and respect for and protection of minorities; economic criteria: existence of a viable market economy, the ability to respond to the pressure of competition and market forces within the EU; the ability to assume the obligations of a Member State stemming from the law and policies of the EU (or the acquis), which include subscribing to the Union's political, economic and monetary aims; having created conditions for integration by adapting their administrative structures. In the case of the Western Balkan countries, the road map proposed by the Commission in 2005 and endorsed by the Council in 2006 provides that satisfactory performance in meeting the obligations stemming from a country's stabilisation and association agreement (especially the provisions on trade) will be one of the key elements on which the EU will base its scrutiny of any application for accession. Moreover, the EU's absorption capacity is another key element in any new enlargement. The union's absorption (or integration) capacity must allow integration across institutions and policies to be intensified as new members are integrated during enlargement. These new members must be well prepared for their new status as Member States. The EU's integration capacity also requires enlargement to be supported by public opinion both in the Member States and the applicant states. Once the countries granted the status of applicant States satisfy these criteria, accession negotiations are ready to begin. The European Council decides whether negotiations should be opened on the basis of an opinion from the Commission. The accession negotiations are the cornerstone of the accession process and cover adoption, implementation and application of the acquis by the applicant countries. They are intended to help them to prepare to be able to meet their obligations as Member States once they join the EU. The negotiations are conducted individually, based on the own merits of each applicant country, as the degree of preparation may vary from one applicant to another. The negotiations are conducted within a framework established by the Council on the basis of a Commission proposal, which sets out a programme for the negotiations to be conducted and takes into account the situation and specific characteristics of each applicant country, namely: the aim, namely accession the negotiation principles and procedures; the points to be negotiated, such as financial aspects, temporary exemptions or safeguard measures in specific areas of the acquis (such as free movement of persons, structural policies or agriculture), which may be invoked throughout the

negotiations; the link between political and economic reform in the applicant country and the negotiations; the conclusion of the negotiations, which remains open; The negotiations are based on the acquis which is divided into chapters, each of which corresponds to a different area of it. The negotiations start with a preparatory phase or a screening of the acquis which is conducted by the Commission. This is intended to assess the degree of preparation of applicant countries, to familiarise them with the acquis and identify the chapters which are to be opened on the basis of the benchmarks defined for each one. The benchmarks cover the essential preparatory stages for future alignment with the acquis and complying with the contractual obligations under the association agreements linked with it. The Council decides unanimously on the benchmarks or opening of a chapter on the basis of the Commission's recommendations. The negotiations take place in the course of bilateral inter-governmental conferences involving all the Member States and the applicant county. The negotiations on any given chapter are concluded when the applicant country fulfils the benchmarks defined for closing a chapter (such as legislative measures, administrative or judicial instances, aspects of the acquis actually implemented, a viable market economy for the economic chapters) and when it accepts the draft common position of the EU prepared by the Commission and adopted unanimously by the Council. The closed chapters may, however, be reopened if the applicant countries no longer satisfy the conditions. As is provided for by the negotiation framework, the accession negotiations may be suspended in the event of a serious and persistent violation of the principles on which the EU is founded. The Commission may then recommend, either on its own initiative or at the request of a third of the Member States, that negotiations be suspended and recommend conditions for them to be reopened. The Council adopts the recommendation by a qualified majority after consulting the applicant country concerned. Once the negotiations on all the chapters have been completed, the accession processes comes to an end and an agreement, called the Accession Treaty, may be concluded between the Member States and the applicant country to mark accession. However, the Council decides unanimously whether to conclude the process after receiving the opinion of the Commission and the assent of the European Parliament. The Accession Treaty is intended to incorporate: the accession date the results of the accession negotiations, conditions for accession and the safeguard or transitional measures for areas which the Commission's most recent assessment identifies as needing more intensive work; adaptation of the institutions and treaties and the distribution of votes in the Council and European Parliament, the number of European Members of Parliament, members of the Committee of Regions, etc.; During the period between the conclusion of the Accession Treaty and the accession date, the treaty is subject to ratification by all the Member States and the future Member State. The applicant country then becomes an acceding State and continues the process of accession by making changes in the areas where there are still shortcomings and in which progress must be made under the watchful eye of the Commission.

Instruments in the accession process A pre-accession strategy is defined for each accession process and for each applicant country in order to help them to prepare for their future accession. This strategy provides for structures and instruments in the process (set out below) which assist the applicant countries in their preparation. Bilateral agreements concluded between the EU and each applicant country provide a bilateral framework for dialogue and negotiations. Examples of these are the association agreement and customs union with Turkey and the stabilisation and association agreements for the Western Balkan States. Political and economic dialogues on political criteria and economic and convergence criteria take place between the EU and each applicant country to consolidate the process. The results of these are incorporated in the accession negotiations. Accession partnerships for each applicant country form an individual framework to help them prepare for accession. They set out in detail the principles and priority areas (in the form of short-and medium-term priorities) based on the Copenhagen criteria in respect of which they must strengthen their institutions and infrastructure and/or legislation, or carry out reforms. The accession partnerships also constitute a guide for the financial aid provided by Community funds. National programmes for the adoption of the acquis (NPAA) are provided for by the accession partnerships and are drawn up by each applicant country. They set out a timetable for implementing the priorities defined by the accession partnership and the human and financial resources allocated to this purpose. Participation in EU programmes, agencies and committees is open to applicant countries and enables them to take part under the same terms as the Member States. The applicant countries make a financial contribution, part of which may be funded by the pre-accession financial assistance. However, the applicant countries only have the status of observers in the programmes in which they participate and attend the meetings of these programmes' monitoring committees only when they concerned. Their role in agencies varies from one agency to another and ranges from partial to full participation. Participation in the EU programmes, agencies and committees is intended to promote cooperation between Member States and exchanges in order to familiarise the applicant countries with Community policies and instruments. Various policy areas, such as education, training, youth, environment, health, inter alia, may be involved. Commission monitoring starts as soon as the request for accession is submitted and continues until the applicant country actually becomes a member of the EU. Monitoring takes the form of annual reports (Regular Reports) in which the Commission assesses how ready the applicant countries are to assume their obligations as Member States. The reports are all structured in a similar fashion and comprise a detailed assessment of the Copenhagen criteria including a chapter-by-chapter evaluation of the adoption and implementation of the acquis. More regularly, with the aim of underpinning its annual assessment, the Commission has set up a procedure for monitoring the course of accession negotiations, which is based on the negotiation framework and is intended to assess the applicant countries' progress in aligning their legislation with and implementing the acquis. This assessment is published regularly in the monitoring reports.

Civil society dialogue is intended to involve civil society in the EU and the applicant countries in the accession process and has assumed a higher profile with the need for civil society engagement in the EU; in this specific context it is also intended to increase mutual understanding and knowledge. Pre-accession aid is intended to support the applicant countries' transition and reforms with a view to strengthening the institutions and putting in place the infrastructures required to align them with and implement the acquis. It is also designed to promote regional and cross-border cooperation, regional development and prepare applicant countries to participate in the EU Structural Funds. Pre-accession assistance and the pre-accession process are interlinked in the sense that the former is intended to support the latter at the same time determined by it. For this reason, this assistance, which is granted in the medium term, must be flexible in order to reflect the progress achieved by the applicant countries and the new priorities identified. Originally, the main financial instrument, the Phare programme, which was set up in order to support the process of reforms and economic and political transition in Hungary and Poland in 1989, very quickly became the main instrument for aid to prepare for the accession of the central and eastern European applicant countries. It was also reinforced by the pre-accession structural instrument (ISPA) and the pre-accession agricultural instrument (SAPARD) for the period 2000-2006. For the period 2007-13, the Instrument for Pre-accession Assistance (IPA) provides the financial aid for applicant countries (and potential applicant countries from the Western Balkan States). The IPA, which is intended to be a flexible instrument, distributes financial aid depending on the progress made by the beneficiary countries and their needs, as indicated by the annual assessments and strategic documents prepared by the Commission. Moreover, applicant countries may also receive cofunding from international financial institutions with which the Commission has signed agreements. These agreements not only allow cooperation between these institutions to be reinforced but also loans and funds deployed in the pre-accession process to be channelled more effectively. The European Investment Bank (EIB), as the EU's accredited financial institution, also plays a considerable role in this area. Background The EU has been through five successive enlargements since it was set up in 1957. It has gone from six founding Member States to the current twenty seven Member States. The 2004 and 2007 enlargements were unprecedented both in terms of the number of countries which were to join and the challenges their accession presented for the EU, as the political and economic situation in the majority of these countries required more preparation before they could join. Moreover, the EU itself had to make preparations in terms of its absorption capacity in order to be able to accommodate them. This is why the enlargement process was intensified to support the countries' transition and reform processes and hence preparation for accession, so that they would be capable of meeting their obligations as Member States at the moment of their accession. In keeping with the wishes of the founding fathers and the spirit of the treaties, the EU is seeking to achieve its goal of being a space of unity in diversity and a promoter of stability and prosperity and is bringing together countries which share a common commitment and common values namely freedom, democracy, the rule of law and respect for human rights.

B- Withdrawal clause Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements. A Member State which decides to withdraw shall notify the European Council of its intention. In the light of the guidelines provided by the European Council, the Union shall negotiate and conclude an agreement with that State, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union. That agreement shall be negotiated in accordance with Article 188 N(3) of the Treaty on the Functioning of the European Union. It shall be concluded on behalf of the Union by the Council, acting by a qualified majority, after obtaining the consent of the European Parliament. The Treaties shall cease to apply to the State in question from the date of entry into force of the withdrawal agreement or, failing that, two years after the notification referred to in paragraph 2, unless the European Council, in agreement with the Member State concerned, unanimously decides to extend this period.

C- Suspension clause The glossary is being updated given the recent signing of the Treaty of Lisbon. The suspension clause was written into the EU Treaty (Article 7) by the Treaty of Amsterdam. Under this clause, some of a Member State's rights (e.g. its voting rights in the Council) may be suspended if it seriously and persistently breaches the principles on which the Union is founded (liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law). But its obligations would still be binding. The Treaty of Nice added a preventive mechanism to this procedure. On a proposal by one third of the Member States, by the Commission or by the European Parliament, the Council, acting by a majority of four fifths of its members after obtaining the assent of the European Parliament, may determine that there is a clear risk of a serious breach of these fundamental principles by a Member State, and address appropriate recommendations to it. Section 8- Revisions to the Treaties The revision of the founding Treaties is essential for the European Union (EU). It allows European legislation and policies to be adapted to new challenges that the EU has to face. Before the entry into force of the Treaty of Lisbon, there was only one procedure for the revision of the Treaties. This procedure required an Intergovernmental Conference (IGC) to be convened on a compulsory basis. The Treaty of Lisbon relaxes the revision procedure whilst improving its attachment to fundamental social rights. It amends the ordinary revision procedure slightly by

increasing the participation of the European Parliament and national Parliaments. Above all, the Treaty of Lisbon creates two types of simplified procedure in order to facilitate the revision of certain provisions of the Treaties. Increased flexibility when revising the Treaties must, however, be put into perspective with respect to maintaining unanimous agreement as a voting rule. Thus, whichever procedure is undertaken, Member States must adopt the revision of the provisions concerned unanimously. The revision procedures are described in Article 48 of the Treaty on European Union. Ordinary revision procedure The ordinary revision procedure concerns key amendments made to the Treaties, such as increasing or reducing the competences of the EU. In particular, it requires that an IGC be convened to adopt proposals for amendments by consensus. Amendments made to the Treaties shall only enter into force after having been ratified by all Member States. The Treaty of Lisbon confirms current practice aimed at organising a European Convention prior to the IGC. The Convention has the task of examining proposals for amendments and then issuing a recommendation for the IGC. It is composed of representatives of Heads of State or Government, and representatives of the Commission, but also of national Parliaments and the European Parliament. The Treaty of Lisbon thus aims to make the process of revising the Treaties more democratic. Another major innovation is the acquisition by the European Parliament of the right of initiative. It may now make proposals for amendments on the same basis as Governments of Member States and the Commission. The European Council may also decide, after obtaining the consent of the European Parliament, not to convene a Convention if amendments are not extensive. In such a case, it establishes a mandate for the IGC directly. Simplified REVISION procedure The Treaty of Lisbon creates a simplified procedure for the amendment of policies and internal actions of the EU. The objective is to facilitate the building of Europe in these two areas. Such a procedure allows for the convening of a European Convention and an Intergovernmental Conference to be avoided. However, the competences of the EU may not be extended by means of a simplified revision procedure. As in the ordinary procedure, the Government of any Member State, the Commission or the European Parliament can submit proposals for amendments to the European Council. The European Council then adopts a Decision laying down the amendments made to the Treaties. The European Council acts by unanimity after consulting the Commission, the European Parliament, and the European Central Bank if the amendment concerns monetary matters. New provisions of the Treaties only enter into force after having been ratified by all Member States pursuant to their respect constitutional requirements. THE GENERAL PASSERELLE CLAUSE The passerelle clause established by the Treaty of Lisbon constitutes a second simplified revision procedure. This clause allows an act to be adopted according to procedures other than those laid down by the founding Treaties, without leading to a formal amendment of the Treaties. The general passerelle clause concerns two cases: where the Treaties provide that an act is to be adopted by the Council acting unanimously, the European Council may adopt a Decision authorising the Council

to act by qualified majority; where the Treaties provide for acts to be adopted in accordance with a special legislative procedure, the European Council may adopt a decision allowing for the adoption of such acts in accordance with ordinary legislative procedure. In both cases, the European Council shall act unanimously after obtaining the consent of the European Parliament. Furthermore, each national Parliament has a right to object and may prevent the general passerelle clause from being activated. The passerelle clause as defined in Article 48 of the Treaty on European Union applies to all European policies with the exception of defence and decisions with military implications. However, the Treaty on European Union and the Treaty on the Functioning of the EU provide for passerelle clauses applicable to certain specific areas (legislative procedures file). The added value of these clauses with respect to the general clause relates to certain procedural particularities. In particular, national Parliaments do not generally have a right to object. Section 9- Democratic principles A- The rights of European citizens In all its activities, the Union shall observe the principle of the equality of its citizens, who shall receive equal attention from its institutions, bodies, offices and agencies. Every national of a Member State shall be a citizen of the Union. Citizenship of the Union shall be additional to and not replace national citizenship. 1. The functioning of the Union shall be founded on representative democracy. 2. Citizens are directly represented at Union level in the European Parliament. Member States are represented in the European Council by their Heads of State or Government and in the Council by their governments, themselves democratically accountable either to their national Parliaments, or to their citizens. 3. Every citizen shall have the right to participate in the democratic life of the Union. Decisions shall be taken as openly and as closely as possible to the citizen. Political parties at European level contribute to forming European political awareness and to expressing the will of citizens of the Union. National Parliaments contribute actively to the good functioning of the Union THE EUROPEAN CITIZENS' INITIATIVE The Lisbon Treaty introduces a new form of public participation in European Union policy shaping, the European citizens initiative (ECI). As required by the Treaty, on a proposal from the European Commission, the European Parliament and the Council adopted a Regulation which defines the rules and procedure governing this new instrument (Regulation (EU) No. 211/2011 of the European Parliament and of the Council 16 February 2011 on the citizens' initiative). The ECI will allow 1 million citizens from at least one quarter of the EU Member States to invite the European Commission to bring forward proposals for legal acts in areas where the Commission has the power to do so. The organisers of a citizens' initiative, a citizens' committee composed of at least 7 EU citizens who are resident in at least 7 different

Member States, will have 1 year to collect the necessary statements of support. The number of statements of support has to be certified by the competent authorities in the Member States. The Commission will then have 3 months to examine the initiative and decide how to act on it. In accordance with the Regulation, it will only be possible to launch the first European Citizens' Initiatives from 1 April 2012. B- Charter of Fundamental Rights The Charter of Fundamental Rights recognises a range of personal, civil, political, economic and social rights of EU citizens and residents, enshrining them into EU law. In June 1999, the Cologne European Council concluded that the fundamental rights applicable at European Union (EU) level should be consolidated in a charter to give them greater visibility. The heads of state/government aspired to include in the charter the general principles set out in the 1950 European Convention on Human Rights and those derived from the constitutional traditions common to EU countries. In addition, the charter was to include the fundamental rights that apply to EU citizens as well as the economic and social rights contained in the Council of Europe Social Charter and the Community Charter of Fundamental Social Rights of Workers. It would also reflect the principles derived from the case law of the Court of Justice and the European Court of Human Rights. The charter was drawn up by a convention consisting of a representative from each EU country and the European Commission, as well as members of the European Parliament and national parliaments. It was formally proclaimed in Nice in December 2000 by the European Parliament, Council and Commission. In December 2009, with the entry into force of the Lisbon Treaty, the charter was given binding legal effect equal to the Treaties. To this end, the charter was amended and proclaimed a second time in December 2007. Content The charter brings together in a single document rights previously found in a variety of legislative instruments, such as in national and EU laws, as well as in international conventions from the Council of Europe, the United Nations (UN) and the International Labour Organisation (ILO). By making fundamental rights clearer and more visible, it creates legal certainty within the EU. The Charter of Fundamental Rights contains a preamble and 54 Articles, grouped in seven chapters: chapter I: dignity (human dignity, the right to life, the right to the integrity of the person, prohibition of torture and inhuman or degrading treatment or punishment, prohibition of slavery and forced labour); chapter II: freedoms (the right to liberty and security, respect for private and family life, protection of personal data, the right to marry and found a family, freedom of thought, conscience and religion, freedom of expression and information, freedom of assembly and association, freedom of the arts and sciences, the right to education, freedom to choose an occupation and the right to engage in work, freedom to conduct a business, the right to property, the right to asylum, protection in the event of removal, expulsion or extradition);

chapter III: equality (equality before the law, non-discrimination, cultural, religious and linguistic diversity, equality between men and women, the rights of the child, the rights of the elderly, integration of persons with disabilities); chapter IV: solidarity (workers right to information and consultation within the undertaking, the right of collective bargaining and action, the right of access to placement services, protection in the event of unjustified dismissal, fair and just working conditions, prohibition of child labour and protection of young people at work, family and professional life, social security and social assistance, health care, access to services of general economic interest, environmental protection, consumer protection); chapter V: citizens rights (the right to vote and stand as a candidate at elections to the European Parliament and at municipal elections, the right to good administration, the right of access to documents, European Ombudsman, the right to petition, freedom of movement and residence, diplomatic and consular protection); chapter VI: justice (the right to an effective remedy and a fair trial, presumption of innocence and the right of defence, principles of legality and proportionality of criminal offences and penalties, the right not to be tried or punished twice in criminal proceedings for the same criminal offence); chapter VII: general provisions. Scope The charter applies to the European institutions, subject to the principle of subsidiarity, and may under no circumstances extend the powers and tasks conferred on them by the Treaties. The charter also applies to EU countries when they implement EU law. If any of the rights correspond to rights guaranteed by the European Convention on Human Rights, the meaning and scope of those rights is to be the same as defined by the convention, though EU law may provide for more extensive protection. Any of the rights derived from the common constitutional traditions of EU countries must be interpreted in accordance to those traditions. Protocol (No) 30 to the Treaties on the application of the charter to Poland and the United Kingdom restricts the interpretation of the charter by the Court of Justice and the national courts of these two countries, in particular regarding rights relating to solidarity (chapter IV). PART ONE: THE POLITICAL INSTITUTIONS IN THE EUROPEAN UNION Chapter 2- The European Council The European Council was created in 1974 with the intention of establishing an informal forum for discussion between Heads of State or Government. It rapidly developed into the body which fixed goals for the Union and set the course for achieving them, in all fields of EU activity. It acquired a formal status in the 1992 Treaty of Maastricht, which defined its function as providing the impetus and general political guidelines for the Union's development. On 1 December 2009, with the entry into force of the Treaty of Lisbon, it became one of the seven independant institutions of the Union.

Its President is Herman Van Rompuy. (Article 15 of the Treaty on European Union).

A- ROLE The European Council provides the Union with the necessary impetus for its development and defines the general political directions and priorities thereof. It does not exercise legislative functions. B- COMPOSITION The European Council consists of: the Heads of State or Government of the Member States, the President of the European Council the President of the Commission.

The High Representative of the Union for Foreign Affairs and Security Policy takes part in its work.When the agenda so requires, the members of the European Council may decide each to be assisted by a minister and, in the case of the President of the Commission, by a member of the Commission. C- MEETINGS The European Council meets twice every six months, convened by its President. When the situation so requires, the President will convene a special meeting of the European Council. D- DECISION-MAKING PROCESS Except where the Treaties provide otherwise, decisions of the European Council are taken by consensus, i.e. by unanimity, which means that if one head of State or government disagrees, no decision is taken. Where the European Council decides by vote, its President and the President of the Commission do not take part in the vote. Where a vote is taken, one member of the European Council may also act on behalf of only one other member. Abstentions by members present in person or represented do not prevent the adoption by the European Council of acts which require unanimity (Article 235 TFEU, see also Rules of Procedure of the European Council). It should be noted, however, that the Heads of State or Government do not adopt legal acts formally binding the Member States [see section 3.3]. Their deliberations result in the publication of declarations containing guidelines and general directives for future EU action. These declarations have undeniable political value, but no legal binding force. They give the political impetus necessary for common policies, but the latter are constructed with European acts adopted subsequently in accordance with the procedures laid down in the Treaties. The situation is quite different in the sphere of the common foreign and security policy where the European Council, in addition to adopting common strategies, can decide upon joint actions or common positions, which bind politically, if not legally, the Member States [see section 8.2.2]. E- THE PRESIDENT OF THE EUROPEAN COUNCIL The creation of the post of President of the European Council is a major innovation of the Treaty of Lisbon. The latter is elected by the European Council by a qualified majority for a term of two and a half years, renewable once. The European Council may end that term in the event of impediment or gross misconduct, in accordance with the same procedure. The Treaty of Lisbon stresses that the President may not hold a national office, but does not rule out potential compatibility with an office within another European institution. The main role of the President is to improve the cohesion and effectiveness of the work carried out within the European Council. The President therefore assumes the functions which were previously carried out by the rotating Presidencies of the EU, namely: chairing and driving forward the work of the European Council; ensuring the preparation and continuity of the work of the European Council;

facilitating cohesion and consensus within the European Council. The President is also required to present a report to the European Parliament after each of the meetings of the European Council. Finally, the President of the European Council fulfils a diplomatic function by increasing the visibility of Europe. The President fulfils the latter role without prejudice to the powers of the High Representative of the Union for Foreign Affairs and Security Policy. SUMMARY TABLE Articles Treaty on European Union 15 Treaty on the Functioning 235and 236 of the European Union Subject Role and composition of the European Council; appointment and powers of the President of the European Council Functioning and responsibilities of the European Council

CHAPTER 3- High Representative of the Union for Foreign Affairs and Security Policy Following the entry into force of the Treaty of Lisbon, the European Council appointed Catherine AshtonHigh Representative of the Union for Foreign Affairs and Security Policy. She chairs the Foreign Affairs Council and conducts the Common Foreign and Security Policy. Drawing on her role as Vice-President of the European Commission, she ensures the consistency and coordination of the European Union's external action. The High Representative is assisted by the European External Action Service (EEAS). A- INTRODUCTION The Treaty of Lisbon creates the post of High Representative of the Union for Foreign Affairs and Security Policy, whose role is to conduct the foreign policy of the European Union (EU). The responsibilities of the High Representative were previously held by two separate persons within the EU: the High Representative for Common Foreign and Security Policy (CFSP); the Commissioner for External Relations. The Treaty of Lisbon therefore puts all of the powers related to common foreign and security policy into the hands of one person. The aim is to improve the consistency, effectiveness and visibility of the EUs external action. However, the High Representative of the Union does not have the monopoly on the EUs external representation. The Treaty of Lisbon also gives the President of the European

Council responsibility for the external representation of the EU, at a separate level, without prejudice to the powers of the High Representative. However, the text does not specify how the work is to be divided between the two, allowing practical experience to determine their respective roles. B- RESPONSIBILITIES The High Representative participates actively in the common foreign and security policy of the Union. First of all, he contributes to the development of that policy by submitting proposals to the Council and the European Council. He then enforces the decisions adopted, as a representative of the Council. The High Representative of the Union also has a duty of representation. He conducts political dialogue with third countries and is responsible for expressing the EUs positions in international organisations. In replacing the High Representative for CFSP and the Commissioner for External Relations, the High Representative has also inherited their respective responsibilities: within the Council, he is responsible for ensuring the consistency and continuity of the work relating to EU foreign policy. To this end, he chairs the Foreign Affairs Council; within the Commission, he holds the responsibilities of the latter in the field of external relations. In addition, he is responsible for ensuring coordination between external policy and the Commissions other policies and other services. C- APPOINTMENT The High Representative is appointed by the European Council acting by a qualified majority with the agreement of the President of the Commission. The European Council may also end the High Representatives mandate in accordance with the same procedure. By virtue of his position, the High Representative is one of the Vice-Presidents of the Commission. In this capacity, he is subject, together with the President and the other members of the Commission, to a vote of approval by the European Parliament. The Treaty on European Union provides that, in the event of a censure motion passed by the Parliament against the Commission, the High Representative must resign from his functions within the Commission. A contrario, he retains the responsibilities which he holds within the Council until the new Commission is formed. D- EUROPEAN EXTERNAL ACTION SERVICE The High Representative of the Union is assisted in the performance of his duties by a European External Action Service. This Service has its legal basis in Article 27(3) of the Treaty on EU. Its functioning and organisation are established by a decision of the Council acting on a proposal from the High Representative. The Council approved the guidelines on the role and functioning of the Service in October 2009. In accordance with these guidelines, the European External Action Service is under the authority of the High Representative. The latter relies on the Service for the preparation of proposals relating to the external policy of the Union and for the implementation of decisions adopted by the Council in this area. The European External Action Service may also be placed at the disposal of the President of the European Council, the President of the Commission and the other Commissioners for issues connected with EU external policy.

SUMMARY TABLE Treaty Union on Articles European 18and 27 Subject Appointment and powers of the High Representative of the European Union for Foreign Affairs and Security Policy

CHAPTER 4- The Council of the European Union Also informally known as the EU Council, this is where national ministers from each EU country meet to adopt laws and coordinate policies. Not to be confused with: European Council another EU institution, where EU leaders meet around 4 times a year to discuss the EUs political priorities Council of Europe not an EU body at all. A- ROLE Passes EU laws. Coordinates the broad economic policies of EU member countries. Signs agreements between the EU and other countries. Approves the annual EU budget Develops the EU's foreign and defence policies. Coordinates cooperation between courts and police forces of member countries. 1. Passing EU laws The Council and Parliament share the final say on new EU laws proposed by the Commission. 2. Coordinating economic policies EU member countries have decided they want an overall economic policy for Europe, coordinated by the economics and finance ministers of each country. A further objective is to create more jobs and improve education, healthcare and welfare systems. Although each country is responsible for its own policy, they can agree on common goals and learn from each others experience. 3. Signing international agreements The Council signs agreements on behalf of the EU on subjects as diverse as the environment, trade, development, textiles, fisheries, science, technology and transport.

4. Approving the EU budget The money the EU can spend every year is decided jointly by the Council and the European Parliament. 5. Foreign and defence policy National governments have independent control in these areas, but are working together to develop a joint foreign and defence policy (known as the 'Common Foreign and Security Policy'). The Council is the main forum for this cooperation. The EU does not have an army. But to help it respond more quickly to international conflicts and natural disasters, some EU countries provide troops for a rapid reaction force, whose role is limited to humanitarian work, rescues and peace-keeping. 6. Justice EU citizens should have equal access to justice anywhere in the EU. In the Council, justice ministers strive to ensure that court judgements in one EU country on divorce cases, for instance are recognised in all other EU countries. Justice and interior ministers coordinate the policing of the EUs external borders, and the fight against terrorism and international organised crime. B- MEMBERS There are no fixed members as such. At each Council meeting, each country sends the minister for the policy field being discussed e.g. the environment minister for the meeting dealing with environmental matters. That meeting will then be known as the "Environment Council". C- PRESIDENCY The foreign ministers Council has a permanent Representative for foreign and security policy. chairperson the EU's High

All other Council meetings are chaired by the relevant minister of the country holding the rotating EU presidency. For example, any environment Council meeting in the period when Estonia holds the presidency will be chaired by the Estonian environment minister. Presidencies 2011-2020 Hungary January-June 2011 Poland July-December 2011 Denmark January-June 2012 Cyprus July-December 2012 Ireland January-June 2013 Lithuania July-December 2013 Greece January-June 2014 Italy July-December 2014 Latvia January-June 2015

Luxembourg July-December 2015 Netherlands January-June 2016 Slovakia July-December 2016 Malta January-June 2017 United Kingdom July-December 2017 Estonia January-June 2018 Bulgaria July-December 2018 Austria January-June 2019 Romania July-December 2019 Finland January-June 2020 D- DECISION-MAKING PROCESS Decisions in the Council of the EU are taken by qualified majority as a general rule. The bigger a countrys population, the more votes it has, but in fact the numbers are weighted in favour of the less populous countries: Germany, France, Italy and the United Kingdom: 29 votes Spain and Poland: 27 Romania: 14 Netherlands: 13 Belgium, Czech Republic, Greece, Hungary and Portugal: 12 Austria, Bulgaria and Sweden: 10 Denmark, Ireland, Lithuania, Slovakia and Finland: 7 Cyprus, Estonia, Latvia, Luxembourg and Slovenia: 4 Malta: 3 TOTAL: 345 When the Council votes, 'qualified majority voting' applies. A qualified majority is reached when: a majority (sometimes even two thirds) of the 27 EU countries vote in favour at least 255 of the possible 345 votes are cast Furthermore, a member country can ask for a check to see whether the majority represents minimum 62% of the total population. If this is not the case, the proposal cannot be adopted. In votes concerning sensitive topics - like security and external affairs and taxation decisions by the Council have to be unanimous. This means that one single country can veto a decision. From 2014 a system known as 'double majority voting' will be introduced. For a proposal to go through, it will need the support of 2 types of majority: a majority of countries (at least 15) and a majority of the total EU population (the countries in favour must represent at least 65% of the EU population).

SUMMARY TABLE Articles Subject

Treaty on European Union 16 Treaty on the Functioning 237to 243 of the European Union

Role and composition of the Council of the EU Functioning of the Council of the EU

CHAPTER 5- The European Commission A- INTRODUCTION The Treaty of Lisbon reaffirms the essential functions of the Commission concerning its right of initiative, its executive functions and its duties of inspection and representation. Some of the changes made relate more specifically to the composition of the Commission. The creation of the post of High Representative of the European Union for Foreign Affairs and Security Policy is one of the main innovations. In addition, the Treaty of Lisbon endeavours to provide a satisfactory answer to the question of the number of Commissioners, which was long discussed in the context of the Treaties of Amsterdam and Nice. Finally, following on from the earlier amending treaties, the role and powers of the President have been strengthened. B- MEMBERS The first Commission, appointed in accordance with the Treaty of Lisbon in 2009, is composed of one Commissioner for each Member State. However, as from 2014, the Treaty of Lisbon provides that the number of Commissioners making up the Commission will be smaller than the number of Member States. The members of the Commission will be chosen on the basis of a rotation system founded on the principle of equality, the rules of which will be adopted by the European Council acting unanimously and in accordance with the following principles: the number of Commissioners should be equal to two thirds of the number of Member States; Member States should be treated equally in terms of order of rotation and the length of time spent by their nationals as members of the College of Commissioners. Under no circumstances may two persons of the same nationality be members of the Commission at the same time; each successive College of Commissioners must be constituted in a manner which best reflects the demographic and geographic diversity of all Member States of the EU. This rotation system is the basic rule enshrined in the Treaty on European Union. However, the Treaty provides for an exception in that the European Council, acting unanimously, may decide to change the number of Commissioners. This option has already been taken up. To facilitate the entry into force of the Treaty of Lisbon, the European Council of 11 and 12 December 2008 allowed for the adoption of a decision enabling the Commission to continue to include a national from each Member State after 2014. The Treaty of Lisbon also creates a new position within the Commission: the High Representative of the EU for Foreign Affairs and Security Policy. The latter replaces both the Commissioner responsible for foreign relations and the senior official for foreign policy and common security. The role of the High Representative is to conduct the Unions foreign policy. The High Representative for Foreign Affairs and Security Policy

chairs the Foreign Affairs Council but is also one of the Vice-Presidents of the Commission. The High Representative is appointed by the European Council acting by a qualified majority with the agreement of the President of the Commission and is also subject, together with the President and the other members of the Commission, to a vote of approval by the European Parliament. C- APPOINTMENT PROCEDURES The way in which the President of the Commission is appointed has not changed. The President is nominated by the European Council, acting by a qualified majority, then approved by the European Parliament. Nevertheless, the Treaty of Lisbon is breaking new ground by introducing a direct link between the results of elections to the European Parliament and the choice of candidate for the Presidency of the Commission. From now on, the European Council must take account of the results in the Parliament when nominating the person it intends to appoint as President of the Commission. This change increases the weight carried by the Parliament in appointing the President and therefore raises the political stakes associated with European elections. By common agreement with the elected President, the Commission then adopts the list of persons which it proposes to appoint as members of the Commission, with the exception of the High Representative for Foreign Affairs and Security Policy. The members of the Commission are chosen for their general competence and their independence. The Treaty of Lisbon adds a new criterion in terms of their commitment to Europe. D- ROLE OF THE PRESIDENT The Treaties of Amsterdam and Nice greatly increased the powers of the President of the Commission. The latter must define the College of Commissioners political guidelines but also determine its internal organisation. The President therefore assigns duties to the various Commissioners and may reallocate responsibilities during the Presidents term of office. The President appoints the Vice-Presidents from among the members of the Commission, with the exception of the High Representative for Foreign Affairs and Security Policy. Since the entry into force of the Treaty of Lisbon, the President may also ask a Commissioner to resign without having to seek the Commissions approval. SUMMARY TABLE Articles Treaty on European Union 17 Subject Role and composition of the Commission; appointment and powers of the President of the Commission Appointment and powers of the High Representative of the European Union for Foreign Affairs and Security Policy Functioning of the Commission

18

Treaty on the Functioning 244to 250 of the European Union

CHAPTER 6- The European Parliament

Section 1 - ROLE The European Parliament is the only directly-elected body of the European Union. It represents the people of the Member States. a) The European Parliament shares legislative power equally with the Council of the European Union. This means it is empowered to adopt European laws (directives, regulations etc,).It can accept, amend or reject the content of European legislation. b) The European Parliament and the Council of the European Union together constitute the Unions budgetary authority, which decides each year on its expenditure and revenue. c) The European Parliament has major supervisory powers over the activities of the European Union: Citizens right of petition (Every European citizen has the right to petition Parliament to ask for problems to be remedied in areas within the sphere of activity of the European Union. ), inquiries (The European Parliament also has the power to set up a committee of inquiry to look into violations or wrong application of Community law by Member States. ) Parliaments right of recourse before the Court of Justice of the European Union : Application for annulment of an act adopted in application of Community law, An action for failure to act can be brought against the Commission or the Council of the European Union if they fail to fulfil their obligations. Financial control: The European Parliament has powers of control in the economic and monetary domain. d) The European Parliament has oversight over Commission and the Council : The European Parliament exercises democratic control over the Commission and there is also a certain parliamentary oversight over the activities of the Council. The President of the Commission is appointed by a qualified majority vote in the European Council.Parliament approves or rejects the proposed appointment. Then, in accord with the President appointed, the Member States appoint the Commissioners.The College of Commissioners must then be endorsed as a whole by Parliament. Parliament has the power to censure the Commission; this is a fundamental instrument that can be exercised by the Members of the European Parliament to ensure democratic control within the Union. Parliament can force the College of Commissioners as a whole to resign. The Commission regularly submits reports to Parliament, such as: The Annual Commission Report on the Activities of the European Union The Annual Report on the Implementation of the Budget Through its scrutiny of these reports Parliament is able to exercise oversight. Tabling written and oral questions by MEPs to the Council and the Commission is one of Parliaments means of exercising supervision.

Parliament has a power of political initiative in that it can call on the Commission to submit a proposal to the Council of the European Union. It regularly invites the Commission and the Council of the European Union to develop existing policies or initiate new ones. Presidents in Office of the Council present their programme to Parliament at the beginning of their presidency and report on the results achieved at the end of their mandate. Section 2 - COMPOSITION The distribution of seats between Member States in the Parliament is a complex subject. Above all, the distribution must maintain a satisfactory proportionality between the seats allocated to Member States and the population of the latter. In addition, the total number of MEPs must not exceed a certain threshold, to avoid impairing the effectiveness of the work of the Parliament. The number of seats in the Parliament has therefore been the subject of long debate and a detailed distribution of seats by Member State was traditionally laid down in the various amending Treaties. With the entry into force of the Treaty of Lisbon, the distribution of seats is no longer included in the Treaties. From now on, it is to be the subject of a proposal from the Parliament requiring unanimous adoption by the European Council. The Treaty of Lisbon therefore leaves it to the European Parliament to propose its own distribution of seats, but lays down the basic rules under which that distribution is to take place: the maximum number of MEPs is set at 751, including the President of the Parliament; the minimum threshold of seats per Member State is set at six MEPs, to ensure that all major political movements have a chance to be represented, even for the least populous Member States; the maximum threshold of seats per Member State is set at 96; the distribution of seats is to be based on the principle of degressive proportionality. In other words, the more populous a State, the more MEPs it has and the larger the number of inhabitants represented by an MEP. TRANSITIONAL PROVISIONS The European Parliament elected in June 2009 is composed of 736 MEPs, as provided for in the Treaty of Nice. The European Council has, however, anticipated the entry into force of the Treaty of Lisbon by providing for transitional measures relating to the composition of the Parliament. In its conclusions of 11 and 12 December 2008, it states that the number of MEPs will be raised to 754 at the end of the 2009-2014 legislative term. This change is to be ratified by all Member States. Until the final adoption of this increase in the number of MEPs, the 18 additional MEPs will have observer status only. SUMMARY TABLE Articles Treaty on European Union 14 Treaty on the Functioning 223to 234 Subject Role and composition of the Parliament Functioning and responsibilities of the

of the European Union

Parliament

Section 3 Election of MEPs The electoral procedures in the European Parliament are governed both by European legislation defining rules common to all Member States, as those related to incompatibilities and to the introduction of the principle of proportional representation, and by specific national provisions which vary from one state to another. (Article 223 TFEU ) A- Common rules 1.Right of non-nationals to vote and to stand as a candidate Every citizen of the Union residing in a Member State of which he is not a national shall have the right to vote and to stand as a candidate in elections to the European Parliament in the Member State in which he resides. 2.Electoral system The elections must be based on proportional representation and use either the list system or the single transferable vote. B- Arrangements subject to national provisions: In addition to these common rules, the electoral arrangements are governed by national provisions that are at times quite different. 1.Electoral system Pursuant to the 2002 Council Decision, all of the Member States must now use a system based on proportional representation. Lists failing to obtain, for example, 5% of the vote in Germany or France, or 4% in Austria or Sweden, are excluded from the allocation of seats. Until the 1994 elections the United Kingdom used the first-past-the-post system (except in Northern Ireland, where proportional representation was already in use). Most major new Member States apply the 5% or 4% threshold. 2.Constituency boundaries In European elections, most of the Member States act as a single constituency. However, there are four Member States (Belgium, France, Ireland and the United Kingdom) which have divided their national territory into a number of regional constituencies. Constituencies of merely administrative interest or distributive relevance within the party lists exist in Belgium (4), Germany (16 only for the CDU/CSU), Italy (5), Poland (13) and in the Netherlands (19). 3.Entitlement to vote a.Vote of non-nationals in the host country

Voting age is 18 in all the Member States, except in Austria (16). Citizens of the Union residing in a Member State of which they are not nationals now have the right (Article 22 TFEU) to vote in elections to Parliament in the Member State in which they reside, under the same conditions as nationals of that state. However, the concept of residence still varies from one national electoral system to another. Some countries require voters either to have their domicile or usual residence on electoral territory (Finland, France, Romania, Poland, Estonia and Slovenia), or to be ordinarily resident there (Denmark, Greece, Ireland, Luxembourg, the United Kingdom, Cyprus, Slovakia and Sweden) or to be entered on the population register (Belgium, the Czech Republic). b.Vote of non-resident nationals in the countries of origin In the United Kingdom the right to vote of citizens resident abroad is confined to government officials and members of the armed forces and to citizens who left the country less than fifteen years before, provided they submit a declaration to the appropriate authorities. Belgium, Denmark, Greece, Italy, and Portugal only grant the right to vote to their nationals living in an other EU Member State. Austria, the Netherlands, Spain, Finland, France, and Sweden grant their nationals the right to vote whatever their country of residence. Germany grants this right to citizens who have lived in another country for less than twenty-five years. In Bulgaria, Ireland and Slovakia the right to vote is confined to EU citizens domiciled on the national territory. 4.Right to stand for election Apart from the requirement of nationality of an EU Member State, which is common to all the Member States, conditions vary from one to another. a.Minimum age 18 in Austria, Denmark, Spain, Finland, Sweden, Hungary, Germany, the Netherlands, Luxembourg, Portugal, Malta and Slovenia, 21 in Belgium, Estonia, Greece, the Czech Republic, Ireland, Latvia, Lithuania, Poland, Slovakia and the United Kingdom, 23 in France and Romania and 25 in Italy and Cyprus. b.Residence In Luxembourg, at least two years residence is required (previously five years) to enable a Community national to stand for election to the European Parliament. Moreover, a list may not comprise a majority of candidates who do not have Luxembourgish nationality. In most Member States, eligibility to stand for elections is needed to satisfy the residence requirements. 5.Nominations In some Member States (Denmark, Germany, Greece, Estonia, the Netherlands, Sweden and the Czech Republic) only political parties and political organisations may submit nominations. In the other countries nominations may be submitted if they are endorsed by the required number of signatures or electors, and in some cases (Greece, the Netherlands, Latvia, Slovakia and the United Kingdom) a deposit is also required. In Ireland and Italy candidates may nominate themselves if they are endorsed by the required number of signatures. 6.Election dates In accordance with national traditions, the European elections in 2009 took place on:

Thursday 4 June in the Netherlands and the United Kingdom, Friday 5 June in the Czech Republic and in Ireland Saturday 6 June in the Czech Republic (two days), Italy, Cyprus, Latvia, Slovakia and Malta Sunday 7 June in all other countries. The 2004 elections were held on 10 and 13 June. The next will take place in June 2014. 7.Voters option to alter the order of candidates on lists In some states (Germany, Spain, France, Greece and Portugal) voters cannot alter the order in which candidates appear on a list. In others (Austria, Belgium, Denmark, Finland, Italy, Luxembourg, the Netherlands and Sweden) the order on the list may be changed using transferable votes. In Luxembourg voters may vote for candidates from different lists. In Sweden, voters may also add names to the lists or remove them. The list system is not used in Ireland, Malta and Northern Ireland. 8.Allocating seats Most Member States have adopted the dHondt rule for allocating seats. Germany uses the divisor method with standard truncation Sainte-Lagu/Schepers and Luxembourg a variant of dHondt method, the Hagenbach-Bischoff method. In Italy seats are allocated by the whole electoral quota and largest remainder method, in Ireland and in Malta by the single transferable vote (STV-Droop). In Greece by the weighted method of proportional representation known as Eniskhimeni Analogiki, and in Sweden, as in Latvia, by the Sainte-Lagu method (division by successive odd numbers but modified to make the largest common divisor 1.4). In Slovakia and in Cyprus a system based on the Droop method and the highest remainder, and in Lithuania the Hare system combined with the highest remainder calculation are used. 9.Verification of the result and rules on election campaigns In Denmark, Germany and Luxembourg, their national Parliament verify the election results and in Slovenia the National Assembly confirms the election of MEP's. For the courts to do so in Austria, Belgium, Finland, Italy, Ireland, Slovenia, Czech Republic, Estonia and the United Kingdom, while both are provided for in Germany. In Spain the result is verified by the Junta Electoral Central; in Portugal and Sweden a verification committee does so. In France, the Council of State is competent for disputes concerning the elections, but the Minister of the Interior also has the same right if (s)he feels that the legally stipulated forms and conditions have not been respected. Contrary to the practice in national elections, no special rules on election campaigns have been laid down. For a long time, political parties at the European level received no direct allowances for election campaigns. Recently, however, a system for the funding of European political parties was established (Regulation EC 2004/2003), which also allowed the establishment of political foundations at the European level. 10.Filling of seats vacated during the electoral term In some Member States (Austria, Denmark, Finland, France, Italy, Luxembourg, the Netherlands and Portugal) seats falling vacant following open resignation are allocated to the first unelected candidates on the lists (possibly after permutation to reflect the votes obtained by the various candidates). In Belgium, Ireland, Germany and Sweden vacant seats are allocated to substitutes. In Spain and Germany, if there are no substitutes account is taken of the order of candidates on the lists. In the United Kingdom by-elections are held. In Greece vacant seats are allocated to substitutes on the

same list; if there are not enough substitutes, by-elections are held. In some Member States MEP's have the right to return to the Parliament once the reason for their departure has expired.

Section 4 MEPs' status A- MEPs' mandate 5 year renewable mandate. B- MEPs' status Independent Mandate Members of the European Parliament shall exercise their mandate independently. They shall not be bound by any instructions and shall not receive a binding mandate. Incompatibilities The office of representative in the European Parliament shall be incompatible with that of: member of the government of a Member State, member of the parliament of a Member State, Member of the European Commission, Judge, Advocate-General or Registrar of the Court of Justice of the European Union, Member of the Court of Auditors of the EU, member of the Economic and Social Committee, member of committees or other bodies set up pursuant to the Community Treaties for the purpose of managing the Communities funds or carrying out a permanent direct administrative task, member of the Board of Directors, Management Committee or staff of the European Investment Bank, and active official or servant of the institutions of the European Communities or of the specialised bodies attached to them. member of the Court of First Instance, member of the Board of Directors of the European Central Bank, Ombudsman of the European Communities C- Salaries and allowances 1) Salary of MEPs MEPs , in general, receive the same salary under the single statute which came into effect in July 2009. The monthly pre-tax salary of MEPs under the single statute is, in 2011, 7.956,87. The salary is from Parliament's budget and is subject to an EU tax and accident insurance contribution, after which the salary is 6.200,72. Member States can also subject the

salary to national taxes. The basic salary is set at 38.5% of the basic salary of a judge at the European Court of Justice. There are a few exceptions: MEPs who sat in Parliament before the 2009 elections could opt to keep the previous national system for salary, transitional allowance and pensions. Pensions Under the statute, former Members will be entitled to an old-age pension from the age of 63. The pension will be 3.5% of the salary for each full years exercise of a mandate but not more than 70% in total. The cost of these pensions will be met from the European Parliament budget. An additional pension scheme, introduced for MEPs in 1989, was closed to new members from July and is being phased out. 2) MEPs' allowances: Like Members of national parliaments, Members of the European Parliament receive a number of allowances that are intended to cover the expenditure they incur in the performance of their parliamentary duties. - General expenditure allowance This allowance is intended to cover expenditure in the Member State of election, such as Members office management costs, telephone and postal charges, and the purchase, operation and maintenance of computer and telematics equipment. The allowance is halved in the case of Members who, without due justification, do not attend half the number of plenary sittings in one parliamentary year (September to August). The amount of this allowance in 2011 is EUR 4 299 per month. - Travel expenses Most meetings of the European Parliament, such as plenary sessions, committee meetings and political group meetings, take place in Brussels or Strasbourg. MEPs are refunded the actual cost of their travel tickets for attending such meetings on presentation of receipts, up to a maximum of a business class air fare, a first class rail fare or 0.50 per km for car journey, plus fixed allowances based on the distance and duration of the journey to cover the other costs of travelling (such as motorway tolls, excess baggage charges or reservation fees, for example). The previous system of a flat-rate travel allowance for journeys to Brussels and Strasbourg (and other EU destinations) has been abolished. - Annual travel allowance Members often have to travel outside their home Member State in the performance of their duties but for purposes other than official meetings (for example, to attend a conference in another Member State or to make a working visit to another country in his/her capacity as rapporteur). To cover this eventuality, Members may receive reimbursement from a fixed yearly travel allowance for their travel, accommodation and associated expenses. Reimbursement is

made on the basis of the actual air fare or rail fare on presentation of the relevant travel vouchers and the requisite supporting documents. For 2010, the allowance is fixed at a maximum of EUR 4 243. - Subsistence allowance Parliament pays this flat-rate allowance of EUR 304 for each day of attendance at official meetings of the Parliament bodies on which the Member serves that are held within the European Union. It covers accommodation, meals and all other expenses involved in such attendance. Parliament pays the allowance only if the Member has signed an official attendance register. During plenary sessions, Parliament reduces this amount by one half for Members who have not taken part in one half of the roll-call votes held on the Tuesdays, Wednesdays and Thursdays of part-sessions held in Strasbourg and on the second day of part-sessions held in Brussels. Parliament pays a sum of EUR 152 per day, plus accommodation and breakfast expenses, for attendance at meetings held outside the European Union, again provided that the Member has signed the official attendance register for the meeting. Staffing arrangements MEPs can choose their own staff within a budget set by Parliament. Accredited assistants, based in Brussels(or Luxembourg/Strasbourg) are administered directly by Parliaments administration, under the conditions of employment for non-permanent EU staff. Assistants based in MEPs Member States are handled by qualified paying agents, guaranteeing the proper tax and social security arrangements. In 2011, the maximum monthly amount available for all the costs involved is 21 209 per MEP. None of these funds are paid to the MEP themselves. Up to a quarter of this budget can be used for services from service providers chosen by the MEP, such as ordering an expert study on a particular subject. In general, MEPs can no longer have close relatives among their staff, though there is a transitional period for those who were employed in the previous term. Section 5 European Parliament's organisation A- Rules of procedure http://www.europarl.europa.eu/sides/getLastRules.do?language=EN&reference=TOC Article 232 of the Treaty on the functioning of the European Union (TFEU) states that the European Parliament shall adopt Rules of Procedure. These are Parliaments internal organisational and operational rules. B- The european Parliament Bureau

1) Composition: the Bureau consists of: the President and its 14 Vice-Presidents; Jerzy BUZEK is the current President the five (after July 2009) Quaestors responsible for Members administrative and financial business, in an advisory capacity. If voting in the Bureau results in a tie, the President shall have the casting vote. The term of office of the President, Vice-Presidents and Quaestors is two and a half years. 2) Bureau's role: It guides Parliaments internal functioning, including : the European Parliaments budget estimates administrative and financial organisation the secretariat and its sub-departments. 3) Quaestors' rle: They are responsible, under the Bureaus instructions, for administrative and financial matters of direct concern to Members. The five Quaestors sit on the Bureau in an advisory capacity. They ensure that Members have the infrastructure necessary to exercise their mandate. 4) The President's role: The President represents the European Parliament vis--vis the outside world and in its relations with the other EU institutions. Assisted by 14 Vice-Presidents, the President oversees all the work of the Parliament and its constituent bodies (Bureau and Conference of Presidents), as well as the debates in plenary. Twelve plenary part-sessions are held each year in Strasbourg and six more in Brussels. The President ensures that Parliaments Rules of Procedure are adhered to and, through his arbitration, guarantees that all the activities of the institution and its constituent bodies run smoothly. The President is the representative of Parliament in legal affairs and in all external relations. S/he delivers an opinion on all major international issues and makes recommendations designed to strengthen the European Union. At the beginning of every European Council meeting (summit) the President of the European Parliament sets out Parliaments point of view and its concerns as regards the items on the agenda and other subjects. After the European Unions budget has been adopted by Parliament , the President signs it, rendering it operational. The EP President and the President of the Council both sign all legislative acts adopted under ordinary legislative procedure.

5) Secretariat of the EP: The European Parliament is assisted by a SecretariatSome 4600 officials, recruited by open competition from all the countries of the Union and placed under the authority of a Secretary-General, work for the European Parliament. The political groups have their own staff and the Members have parliamentary assistants. The European Parliament is distinguished from other international organisations by its obligation to offer full multilingualism.Parliament works in all the official languages of the European Union 23 since Bulgaria and Romania joined the EU and Irish was recognised as official language of the EU in 2007. All documents dealt with in plenary must be translated into 22 of these languages. A partial exception currently applies to the Irish language only legislative documents have to be translated into it. The European Parliament also provides an interpretation service, so that every Member is able to speak in his/her mother tongue.This makes the European Parliament the worlds largest employer of interpreters and translators, who account for one third of the institutions staff. The Secretariat is located in Luxembourg and Brussels. C- The Conference of Presidents: The Conference of Presidents is made up of the chairs of the political groups and the President of the European Parliament. It organises practical aspects of Parliaments work and decides on all questions relating to legislative planning, including : the timetable and agenda for plenary sittings the composition of the committees and delegations, and their remits legislative programming. It also has an important role to play in the relations between the European Parliament and the other Community institutions, third countries and extraCommunity organisations. D- Political groups: The Members of the European Parliament sit in political groups they are not organised by nationality, but by political affiliation. There are currently 7 political groups in the European Parliament. Each takes care of its own internal organisation by appointing a chair (or two cochairs in the case of some groups), a bureau and a secretariat. The places assigned to Members in the Chamber are decided by political affiliation, from left to right, by agreement with the group chairmen. 25 Members are needed to form a political group, and at least one-quarter of the Member States must be represented within the group. Members may not

belong to more than one political group. Some Members do not belong to any political group and are known as nonattached Members. Before every vote in plenary the political groups scrutinise the reports drawn up by the parliamentary committees and table amendments to them. The position adopted by the political group is arrived at by discussion within the group. No Member can be forced to vote in a particular way. The actual seven political groups: Group of the European People's Party (Christian Democrats) Group of the Progressive Alliance of Socialists and Democrats in the European Parliament Group of the Alliance of Liberals and Democrats for Europe European Conservatives and Reformists Group Group of the Greens/European Free Alliance Confederal Group of the European United Left - Nordic Green Left Europe of Freedom and Democracy Group E- Parliamentary committees In order to do the preparatory work for Parliaments plenary sittings, the Members are divided up among a number of specialised standing committees. There are 20 parliamentary committees. A committee consists of between 24 and 76 MEPs, and has a chair, a bureau and a secretariat. The political make-up of the committees reflects that of the plenary assembly . The parliamentary committees meet once or twice a month in Brussels. Their debates are held in public. The committees draw up, amend and adopt legislative proposals and owninitiative reports. They consider Commission and Council proposals and, where necessary, draw up reports to be presented to the plenary assembly. Parliament can also set up sub-committees and special temporary committees to deal with specific issues, and is empowered to create formal committees of inquiry under its supervisory remit to investigate allegations of maladmistration of EU law. The committee chairs coordinate the work of the committees in the Conference of Committee Chairs. Standing committees AFET Foreign Affairs DROI Human Rights SEDE Security and Defence

Meeting documents Meeting documents Meeting documents

DEVE INTA BUDG CONT ECON EMPL ENVI ITRE IMCO TRAN REGI AGRI PECH CULT JURI LIBE AFCO FEMM PETI

Development International Trade Budgets Budgetary Control Economic and Monetary Affairs Employment and Social Affairs Environment, Public Health and Food Safety Industry, Research and Energy Internal Market and Consumer Protection Transport and Tourism Regional Development Agriculture and Rural Development Fisheries Culture and Education Legal Affairs Civil Liberties, Justice and Home Affairs Constitutional Affairs Women's Rights and Gender Equality Petitions

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Former special committees CRIS Financial, Economic and Social Crisis (The work of the Special Committee was completed on 31 July 2011) SURE Policy Challenges Committee (The work of the Special Committee was completed on 30 June 2011)

Section 6 Supervisory powers and oversight over the council and commission A- Supervisory powers:

The European Parliament has major supervisory powers over the activities of the European Union. The way of exercising control are: Citizens right of petition Every European citizen has the right to petition Parliament to ask for problems to be remedied in areas within the sphere of activity of the European Union. Parliament has also appointed an Ombudsman, who deals with complaints by individuals against Community institutions or bodies with a view to reaching an amicable solution. Inquiries The European Parliament also has the power to set up a committee of inquiry to look into violations or wrong application of European law by Member States. One of these committees was set up, for example, at the time of the mad cow disease outbreak, leading to the establishment of a European veterinary agency. Parliaments right of recourse before the Court of Justice of the European Union Application for annulment of an act adopted in application of European law. An action for failure to act can be brought against the Commission or the Council of the European Union if they fail to fulfil their obligations. Financial control The European Parliament has powers of control in the economic and monetary domain. The President, the Vice-President and the members of the Executive Board of the European Central Bank cannot be appointed by the Council until the European Parliament has given its assent. The President of the ECB presents its annual report to the European Parliament in plenary session. B- Oversight over the commission and council. The European Parliament exercises democratic control over the Commission and there is also a certain parliamentary oversight over the activities of the Council. The President of the Commission is appointed by a qualified majority vote in the European Council. Parliament approves or rejects the proposed appointment. Then, in accord with the President appointed, the Member States appoint the Commissioners. The College of Commissioners must then be endorsed as a whole by Parliament. Parliament has the power to censure the Commission; this is a fundamental instrument that can be exercised by the Members of the European Parliament to ensure democratic control within the Union. Parliament can force the College of Commissioners as a whole to resign. The Commission regularly submits reports to Parliament, such as:

The Annual Commission Report on the Activities of the European Union The Annual Report on the Implementation of the Budget Through its scrutiny of these reports Parliament is able to exercise oversight. Tabling written and oral questions by MEPs to the Council and the Commission is one of Parliaments means of exercising supervision. Parliament has a power of political initiative in that it can call on the Commission to submit a proposal to the Council of the European Union. It regularly invites the Commission and the Council of the European Union to develop existing policies or initiate new ones. Presidents in Office of the Council present their programme to Parliament at the beginning of their presidency and report on the results achieved at the end of their mandate.

CHAPTER 7- Legislative procedures The European Parliament shares legislative power equally with the Council of the European Union. This means it is empowered to adopt European laws (directives, regulations etc,). It can accept, amend or reject the content of European legislation.

How does the legislative process work in practical terms? A Member of the European Parliament, working in one of the parliamentary committees, draws up a report on a proposal for a legislative text presented by the European Commission, the only institution empowered to initiate legislation. The parliamentary committee votes on this report and, possibly, amends it. When the text has been revised and adopted in plenary, Parliament has adopted its position. This process is repeated one or more times, depending on the type of procedure and whether or not agreement is reached with the Council. In the adoption of legislative acts, a distinction is made between the ordinary legislative procedure (codecision), which puts Parliament on an equal footing with the Council, and the special legislative procedures, which apply only in specific cases where Parliament has only a consultative role. On certain questions (e.g. taxation) the European Parliament gives only an advisory opinion (the consultation procedure). In some cases the Treaty provides that consultation is obligatory, being required by the legal base, and the proposal cannot acquire the force of law unless Parliament has delivered an opinion. In this case the Council is not empowered to take a decision alone.

Parliament has a power of political initiative.

It can ask the Commission to present legislative proposals for laws to the Council. It plays a genuine role in creating new laws, since it examines the Commissions annual programme of work and says which laws it would like to see introduced. Section 1- Two types of legislative procedure Article 289 of the Treaty on the Functioning of the EU now only refers to two types of legislative procedure: ordinary legislative procedure; The codecision procedure was introduced by the Maastricht Treaty on European Union (1992), and extended and made more effective by the Amsterdam Treaty (1999). With the Lisbon Treaty that took effect on 1 December 2009, the renamed ordinary legislative procedure became the main legislative procedure of the EUs decisionmaking system. Ordinary legislative procedure gives the same weight to the European Parliament and the Council of the European Union on a wide range of areas (for example, economic governance, immigration, energy, transport, the environment and consumer protection). The vast majority of European laws are adopted jointly by the European Parliament and the Council. The Commission sends its proposal to Parliament and the Council. They consider it, and discuss it on two successive occasions. After two readings, if they cannot agree, the proposal is brought before a Conciliation Committee made up of an equal number of representatives of the Council and Parliament. Representatives of the Commission also attend the meetings of the Conciliation Committee and contribute to the discussions. When the Committee has reached agreement, the text agreed upon is sent to Parliament and the Council for a third reading, so that they can finally adopt it as a legislative text. The final agreement of the two institutions is essential if the text is to be adopted as a law. Even if a joint text is agreed by the Conciliation Committee, Parliament can still reject the proposed law by a majority of the votes cast. http://www.europarl.europa.eu/parliament/public/staticDisplay.do? language=EN&id=46&pageRank=4 The ordinary legislative procedure replaces the former codecision procedure. This procedure is the most legitimate from a democratic point of view. It involves the European Parliament as a co-legislator at the Councils side. Over time, it has also become the most widely used legislative procedure. The Treaty of Lisbon therefore confirms this trend by changing its name and establishing it as a common law procedure. Continuing on from previous Treaties, the Treaty of Lisbon also extends the ordinary

legislative procedure to new areas of policy (see file Extension of voting by qualified majority and the ordinary legislative procedure). The modalities of the ordinary legislative procedure are the same as those of the former codecision procedure. They are described in Article 294 of the Treaty on the Functioning of the EU. The Council and the Parliament are placed on an equal footing. The two institutions adopt legislative acts either at first reading, or at second reading. If, following the second reading, the two institutions have still not reached agreement, a Conciliation Committee is convened. In addition, the voting rule under the ordinary legislative procedure is qualified majority. In order to facilitate decision-making and strengthen the effectiveness of the procedure, the Treaty of Lisbon has also laid down a new definition of a qualified majority (see file Council of the European Union). special legislative procedures. Special legislative procedures replace the former consultative, cooperation and assent procedures. The objective is to simplify the EUs decision-making process by making it clearer and more effective. As their name indicates, these procedures derogate from the ordinary legislative procedure and therefore constitute exceptions. In special legislative procedures, the Council of the EU is, in practice, the sole legislator. The European Parliament is simply associated with the procedure. Its role is thus limited to consultation or approval depending on the case. Unlike the ordinary legislative procedure, the Treaty on the Functioning of the EU does not give a precise description of special legislative procedures. The rules of special legislative procedures are therefore defined on an ad hoc basis by the Articles of the Treaty on European Union and the Treaty on the Functioning of the EU that provide for their implementation. PASSERELLE CLAUSES The Treaty of Lisbon has introduced passerelle clauses in order to be able to apply the ordinary legislative procedure to areas for which the Treaties had laid down a special legislative procedure. Furthermore, these clauses also allow voting by qualified majority to be applied to acts that are to be adopted unanimously. There are two types of passerelle clause: the general passerelle clause applying to all European policies; activation of this clause must be authorised by a Decision of the European Council acting unanimously (see file Amendment of Treaties); specific passerelle clauses relating to certain European policies. Specific passerelle clauses have some procedural particularities with respect to the general passerelle clause. As an example, national Parliaments do not generally have a right to object, which is granted to them by the general clause. In other cases, the application of certain specific clauses may be authorised by a Decision of the Council, and not of the European Council as is the case for the general clause. The implementing rules for the specific clauses therefore differ from case to case and are described in the Articles of the Treaties providing for their application.

There are six specific passerelle clauses to be applied to: the multiannual financial framework (Article 312 of the Treaty on the Functioning of the EU); the Common Foreign and Security Policy (Article 31 of the Treaty on European Union); judicial cooperation concerning family law (Article 81 of the Treaty on the Functioning of the EU). This specific clause is the only clause regarding which national Parliaments retain a right to object; reinforced cooperation in areas governed by unanimity or by a special legislative procedure (Article 333 of the Treaty on the Functioning of the EU); social affairs (Article 153 of the Treaty on the Functioning of the EU); environmental matters (Article 192 of the Treaty on the Functioning of the EU).

Section 2 : European Union legal acts The Treaty of Lisbon makes several changes to the types of European Union legal acts. For the sake of clarification and simplification, it firstly reduces the number of legal instruments available to the European institutions. In addition, it enables the Commission to adopt a new category of act: delegated acts. It also strengthens the competence of the Commission to adopt implementing acts. These two changes aim at improving the efficiency of European decision-making and the implementation of these decisions. EU legal acts are legislative or non-legislative acts adopted by the European institutions. Depending on their nature, these acts may have a legally binding effect. A- Reducing the number of legal acts Before the entry into force of the Treaty of Lisbon, there were fourteen types of legal act which could be adopted by the European institutions. This multitude of acts was due, in particular, to the old EU pillar structure: each pillar had its own legal instruments. The Treaty of Lisbon puts an end to this pillar structure. In addition, it introduces a new classification for legal acts. From now on, the European institutions may adopt only five types of act: a regulation; a directive; a decision; a recommendation; an opinion. According to Article 288 of the Treaty on the Functioning of the EU, regulations, directives and decisions are binding acts. However, recommendations and opinions are not legally binding upon those to whom they are addressed. Moreover, a decision no longer necessarily needs to specify an addressee. It thus has a broader remit and replaces, in particular, all the instruments formerly used in the area of the CFSP.

B- Delegated acts The Treaty of Lisbon creates a new category of legal act: delegated acts. The legislator delegates the power to adopt acts amending non essential elements of a legislative act to the Commission. For example, delegated acts may specify certain technical details or they may consist of a subsequent amendment to certain elements of a legislative act. The legislator can therefore concentrate on policy direction and objectives without entering into overly technical debates. However, this delegation of power has strict limits. In effect, only the Commission can be authorised to adopt delegated acts. Furthermore, the legislator sets the conditions under which this delegation may be implemented. Article 290 of the Treaty on the Functioning of the EU specifies that the Council and the Parliament may revoke a delegation or limit its duration. C- Implementing acts Moreover, the Treaty of Lisbon strengthens the implementing powers of the Commission. The implementation of European law on Member States territories is, as a matter of principle, the responsibility of Member States. However, certain European measures require uniform implementation across the EU. Therefore, in these cases, the Commission is authorised to adopt implementing acts relating to the implementation of such measures. Until the entry into force of the Treaty of Lisbon, implementing power was held by the Council, which delegated the adoption of implementing acts to the Commission. From now on, Article 291 of the Treaty on the Functioning of the EU recognises the competence of principle of the Commission. Therefore, European measures which require uniform implementation in the Member States directly authorise the Commission to adopt implementing acts. At the same time, the Treaty of Lisbon increases the powers of the Parliament with regard to monitoring the implementing powers of the Commission. The modalities of this monitoring were previously determined by the Council. From now on, these modalities shall be adopted by the ordinary legislative procedure, within which the Parliament is on an equal footing with the Council. CHAPTER 8- Budgetary power of the European Parliament The European Parliament and the Council of the European Union together constitute the Unions budgetary authority, which decides each year on its expenditure and revenue. The procedure of examining, then adopting, the budget takes place between May and December. With the entry into force of the Lisbon Treaty, the Parliament became a true colegislator for the EU's entire annual budget, deciding on it in close collaboration with the Council. The European Parliament and the Council must adhere to the annual spending

limits laid down in the multiannual financial perspective. A- How is the budget adopted? The principle of annuality of the budget means that the budget is adopted for one year (the budget year begins on 1 January and ends on 31 December). The Commission prepares a draft budget, which it submits to the Council and to the Parliament. On this basis the Council adopts its position, which it forwards to the European Parliament. Parliament adopts its position in the light of its political priorities..If the Parliament approves Council's position or declines to state a position the budget is deemed adopted; but normally the Parliament adopts amendments and the amended draft budget is referred back to Council and Commission and the EP President convenes a meeting of the Conciliation Committee. The Conciliation Committee is assigned to come up with a joint text within 21 days; if the representatives of the Council and of the Parliament cannot agree on a joint text, then a new draft budget must be submitted by the Commission. If the Conciliation Committee agrees on a joint text, Parliament and Council have 14 days to approve the joint text. It is the President of the European Parliament who finally signs the budget. B- How is oversight over the budget maintained? The Committee on Budgetary Control monitors the Unions expenditure on a permanent basis. The European Parliament, on a recommendation from the Council of the European Union, decides on giving the discharge to the Commission for the implementation of the budget (annual discharge procedure extending normally from November to April). C- The budget of the European Union: The European Union itself does not levy any taxes. Instead, the European Unions budget is funded from own resources made available by the Member States after consultation with the European Parliament. They are: customs duties (from the common customs tariff applied to trade with third countries) about 10% of revenue; agricultural levies (charged on agricultural products imported countries outside the European Union) about 1% of total revenue; from

VAT resource (contribution by the Member States equivalent to 1% of the final selling price of a common base of goods and services) about 11% of total resources;

GNP based resource (contribution by each Member State on the basis of its share of the Communitys total GNP, with a maximum rate of 1.27%, in fact 0,7% of Member States' GNI in 2009 about 70% of total resources. other revenue and the 'correction mechanism'. The European Union budget has to be balanced in revenue and expenditure. Flowchart on budgetary procedure: http://www.europarl.europa.eu/parliament/public/staticDisplay.do? language=EN&id=46&pageRank=7

CHAPTER 9 EUROPEAN ECONOMIC AND SOCIAL COMMITTEE Representatives of Europe's employers, workers and other interest groups can express their views on EU issues through the European Economic and Social Committee (EESC). It is a consultative assembly, issuing opinions to the larger institutions in particular the Council, the Commission and the European Parliament. Section 1 - Role The European Economic and Social Committee was established in 1957 as a forum to discuss issues regarding the single market. The EESC gives Europe's interest groups trade unionists, employers, farmers a formal say on EU legislative proposals. On average the EESC delivers 170 advisory documents and opinions a year. All opinions are forwarded to the EU decision-making bodies and then published in the EU's Official Journal. Section 2 Composition The European Economic and Social Committee has 344 members drawn from economic and social interest groups across Europe. Members belong to one of three groups: Employers : the Employers' Group (Group I) has 114 members, and is made up of entrepreneurs and representatives of entrepreneur associations working in industry, commerce, services and agriculture in the 27 Member States of the European Union. Employees : The Workers' Group (Group II) comprises representatives from national trade unions, confederations and sectoral federations. Its members represent over 80 trade union organisations the vast majority of them affiliated to the European Trade Union Confederation (ETUC) or its sectoral federations. Various Interests (e.g. farmers, consumer groups) : The presence of the Various Interests' Group (Group III), alongside the Employers' Group and the Workers' Group, ensures that the Committee is a dynamic force and is empowered to give full voice to the concerns of the various social, occupational, economic and cultural organisations that make up civil society in th e Member States. In line with the

changes introduced in the new Lisbon Treaty, Group III is made up of "other representatives and stakeholders of civil society, particularly in the economic, civic, professional and cultural field." The unique feature which forges Group III's identity is the wide range of categories. Its Members are drawn from farmers' organisations, small businesses, the crafts sector, the professions, social economy actors (mutualities, cooperatives, foundations and non-profit associations), consumer organisations, environmental organisations, and associations representing the family, womens and gender equality issues, youth, minority and underprivileged groups, persons with disabilities, the voluntary sector and the medical, legal, scientific and academic communities. Each group has its own Prsident and vice-presidents. Section 3 Nomination Members are nominated by national governments and appointed by the Council of the European Union for a renewable 5-year term. The number of members from each country depends on the national population: Germany, France, Italy, UK 24 members Spain, Poland 21 members Romania 15 members: Belgium, Greece, the Netherlands, Portugal, Austria, Sweden, Czech Republic, Hungary, Bulgaria 12 members: Denmark, Ireland, Finland, Lithuania, Slovakia 9 members Estonia, Latvia, Slovenia 7 members Luxemburg, Cyprus 6 members Malta 5 members Section 4 Status of the Members Members of the EESC are unpaid but receive allowances to cover their travel expenses and accommodation when attending meetings. Members shall have the title "member of the European Economic and Social Committee". Incompatibilities: The position of member of the European Economic and Social Committee shall be incompatible with that of member of a government, a parliament, a European Union institution, the Committee of the Regions or the board of directors of the European Investment Bank, and with the post of official or other servant of the European Union in active employment. In the event of such an incompatibility, the member concerned shall be required to resign as soon as he or she has been appointed officially. The Committee president shall notify the Council of the European Union immediately, so that it can verify the vacancy and appoint a replacement. Termination of office - Committee membership normally shall expire at the end of the expected term, or on resignation, in the event of an incompatibility, on removal from

office, or through death or any other case of force majeure. In the event of continued absence for which no reasons are given, the Committee president may, after consulting the Bureau and inviting the member concerned to explain his or her absence, call upon the Council of the European Union to remove that member from office. Duties and responsabilities - Members shall draft and adopt opinions, in accordance with the Committee's advisory role as laid down in the Treaties, exploratory opinions, at the request of either the European Parliament, the Council of the European Union or the European Commission, and own-initiative opinions on draft legislation, policies and strategies of the European Union and on other matters of significant interest to the European public and organised civil society. They may also draft information reports on such matters. Members shall have the right and duty to participate in plenary sessions and in meetings of the Committee bodies and working groups of which they are members. They shall be entitled to speak and vote whenever such action is appropriate. Members shall also have a right and duty to take part in missions, conferences and other activities assigned to them with their agreement, for the purposes of representing the Committee, and to report back. Independance and freedom of expression - Members shall not, therefore, be bound by any mandatory instructions. Members shall enjoy the same freedom of expression accorded to members of parliament, and may not be victimised or persecuted for statements made or votes cast within the Committee, for the content of opinions they draft or for statements or positions expressed in the context of their work representing the Committee externally or following up opinions. Members shall be required, even after their duties have ceased, not to disclose information of the kind covered by the obligation of professional secrecy.

Section 5 Internal organization EESC consists of four bodies: Plenary session of the Committee, bureau and the sections. A- Presidency and bureau The current President is Staffan Nilsson. Every two and half years the EESC elects a bureau made up of 37 members, and a president and two vice-presidents chosen from each of the three groups in rotation. The president is responsible for the orderly conduct of the Committee's business. He is assisted by the vice-presidents, who deputize for him in the event of his absence. The president represents the EESC in relations with outside bodies. Joint briefs (relations with EFTA, CEEC, AMU, ACP countries, Latin American and other third countries, and the Citizens' Europe) fall within the remit of the EESC bureau and the president. The bureau's main task is to organize and coordinate the work of the EESC's various bodies and to lay down policy guidelines for this work. B- Sections The Committee has six sections: the President, the

Agriculture, Rural Development and the Environment (NAT) Economic and Monetary Union and Economic and Social Cohesion (ECO) Employment, Social Affairs and Citizenship (SOC) External Relations (REX) The Single Market, Production and Consumption (INT) Transport, Energy, Infrastructure and the Information Society (TEN) A new Consultative Committee on Industrial Change has been incorporated into the EESC structure following the expiry of the ECSC Treaty in July 2002 (CCMI) C- Study groups Section opinions are drafted by study groups. These usually have 12 members, including a rapporteur. Study group members may be assisted by experts (normally four). D- Sub-committees The EESC has the right to set up temporary sub-committees, for specific issues. These sub-committees operate on the same lines as the sections. E- Plenary session As a rule, the full Committee meets in plenary session nine times a year. At the plenary sessions, opinions are adopted on the basis of section opinions by a simple majority. They are forwarded to the institutions and published in the Official Journal of the European Communities. Section 6 - Attributions The EESC may be consulted by the Council, the Commission or the parliament before adopting a legal act. Depending on the subject matter, consultation is mandatory or consultative. And, the EESC may take its own initiative to give an opinion. Procedure: European commission, council or parliament makes request to the EESC, or the EESC takes own initiative. Autorization of work is given by the Bureau. Rapporteur and study group designated by the Groups. Drafting by rapporteur often assisted by study group. Examination and adoption by sections. Adoption by plenary. Conclusion: opinion is communicated as appropriate/Opinion goes to EU institutions.

CHAPTER 10- The Committee of the Regions

The Committee of the Regions is an advisory body representing local and regional authorities in the European Union. Section 1 - Role The role of the Committee of the Regions (CoR) is to put forward local and regional points of view on EU legislation. It does so by issuing reports (opinions) on Commission

proposals. The Commission, the Council and the Parliament must consult the Committee of the Regions before EU decisions are taken on matters concerning local and regional government (for example on employment policy, the environment, education or public health). The CoR is based in Brussel. Section 2 - Members The Committee of the Regions currently has 344 members (and as many alternate members) from all 27 EU countries. Further expansion of the EU could take the number of members (and alternates) to a maximum of 350. Members and alternates are appointed for a five-year term by the Council, acting on proposals from the EU countries. Each country chooses its members in its own way, but the delegations all reflect the political, geographical and regional/local balance in their country. The members are elected members of or key players in local or regional authorities in their home region. Terms of Office - The five-year term of office of a member or alternate commences on the date on which his formal appointment by the Council takes effect. The term of office of a member or alternate is terminated by resignation or death. A successor shall be appointed by the Council for the remainder of the term. Any resignation must be in writing, signed by the resigning member or alternate and sent to the President of the Committee. The President shall inform the Council, which shall confirm the vacancy and implement the replacement procedure.

Section 3- Status of the Members Members of the EESC are unpaid but receive allowances to cover their travel expenses and accommodation when attending meetings. The members and alternates shall be representatives of regional and local bodies. They shall hold a regional or local authority electoral mandate or shall be politically accountable to an elected assembly. They may not be bound by any mandatory instructions and shall be completely independent in the performance of their duties, in the general interest of the Union. Privileges and immunities: Members and their duly mandated alternates shall enjoy privileges and immunities in accordance with the Protocol on the Privileges and Immunities of the European Union. Section 4- Internal organization The constituent bodies of the Committee shall be the Plenary Assembly, the President, the Bureau and the commissions.

A- Plenary session The CoR holds five plenary sessions each year, to define general policy and adopt opinions. The Committee also adopts resolutions on topical political issues. Four political groups are represented in the CoR, reflecting the main European political families: European People's Party (EPP) Party of European Socialists (PES) Group of the Alliance of Liberals and Democrats for Europe (ALDE) Union for Europe of the Nations - European Alliance (UEN-EA). B- Presidency and bureau The current President is Mercedes Bresso. The Bureau can be thought of as the CoR's political driving force in that it draws up the Committee's political programme at the start of each new term, oversees its implementation and generally coordinates the work of the plenary sessions and the commissions. As a rule, the Bureau meets seven times a year: before each of the five plenary sessions in Brussels and two extraordinary meetings, each of which is held in the Member State that takes up the Council presidency. The CoR elects the bureau for a 2,5 years mandate. The Bureau shall consist of: (a) the President; (b) the first Vice-President; (c) one Vice-President per Member State; (d) 27 other members; (e) the chairmen of the political groups. Seats on the Bureau (excluding the seats of the President, the first Vice-President and the chairmen of the political groups) shall be divided among the national delegations as follows: 3 seats: Germany, Spain, France, Italy, Poland, United Kingdom, 2 seats: Belgium, Bulgaria, Czech Republic, Denmark, Greece, Ireland, Lithuania, Hungary, the Netherlands, Austria, Portugal, Romania, Slovakia, Finland, Sweden, 1 seat: Estonia, Cyprus, Latvia, Luxembourg, Malta, Slovenia. C- Commissions There are six commissions to consider different policy areas and prepare the opinions to

be debated in the plenary sessions: Territorial cohesion Economic and social policy Education, youth and research Environment, climate change and energy Citizenship, governance, institutional and external affairs Natural resources Section 5 - Attributions The Committee of the Regions (CoR) is the political assembly that provides local and regional authorities with a voice at the heart of the European Union. Established in 1994, the CoR was set up to address two main issues. Firstly, since around three quarters of EU legislation is implemented at local or regional level, it makes sense for local and regional representatives to have a say in the development of new EU laws. Secondly, there were concerns that the public was being left behind as the EU steamed ahead. Involving the elected level of government closest to the citizens was one way of closing the gap. With the entry into force of the Lisbon Treaty, the role of the CoR will be strengthened along the entire legislative process. The new treaty obliges the European Commission to consult with local and regional authorities and their associations across the EU as early as the pre-legislative phase, and the CoR, in its role as the voice of local and regional authorities at the EU level, is heavily involved right from this early stage. Once the legislative proposal has been made by the Commission, consultation of the CoR is again obligatory if the proposal concerns one of the many policy areas that directly affect local and regional authorities. The Maastricht Treaty set out five such areas - economic and social cohesion, trans-European infrastructure networks, health, education and culture, while the Amsterdam Treaty added another five - employment policy, social policy, the environment, vocational training and transport. The Lisbon Treaty has extended the scope of the CoR's involvement even further, adding civil protection, climate change, energy and services of general interest to the list of policy areas where the CoR must be consulted. But the CoR's involvement does not stop once it has issued its opinion on the Commission proposal. The Lisbon Treaty for the first time makes it obligatory for the CoR to be consulted by the European Parliament, giving the Committee a chance to comment on any changes made to the proposed legislation by MEPs. The CoR also has the right to question the Commission, Parliament and Council if they fail to take on board its viewpoint, and can even call for a second consultation if the initial proposal is substantially modified during its passive through the other institutions. In extreme cases, the CoR also has the right to go to the European Court of Justice if it believes it has not been correctly consulted by the Commission, Parliament or Council.

CHAPTER 11 European Court of Auditors The European Court of Auditors audits EU finances. Its role is to improve EU financial

management and report on the use of public funds. It was set up in 1975 and is based in Luxembourg. Section 1 - Role: To ensure that EU taxpayers get maximum value for their money, the Court of Auditors has the right to check ('audit') any person or organisation handling EU funds. The Court frequently carries out on-the-spot checks. Its findings are written up in reports submitted to the Commission and EU national governments. The Court of Auditors has no legal powers of its own. If auditors discover fraud or irregularities they inform OLAF the European Anti-Fraud Office. Tasks: One of the Court's most important jobs is to present the European Parliament and the Council with an annual report on the previous financial year (the 'annual discharge'). Parliament examines the Courts report thoroughly before deciding whether or not to approve the way in which the Commission has handled the budget. The Court also has to give its opinion on EU financial legislation and how to help the EU fight fraud. Auditors frequently carry out inspections in EU institutions, member countries and countries receiving EU aid. While the Court's work mainly concerns money for which the Commission is responsible, in practice 80% of the income and expenditure is managed by national authorities. Section 2 - Members: A- Nomination To do its job properly, the Court of Auditors must stay completely independent of the other institutions but remain in constant touch with them. The Court has one member from each EU country appointed by the Council for a six-year term (renewable). The members elect one of their member as President for a term of three years (also renewable). Vtor Manuel da Silva Caldeira, from Portugal, was elected President in January 2008. B- Status To achieve its mission, the Court should be and also be perceived as an objective, independent and professional institution in which its stakeholders can have full confidence. To this end, the Court has adopted the requirements established by the INTOSAI Code of Ethics (ISSAI 30) and a set of Ethical Guidelines. The Ethical Guidelines are intended to help ensure that daily decisions, both in auditing and in running the institution, comply with the principles laid down by the INTOSAI Code. They are based on the Court's values: independence, integrity, impartiality, professionalism, adding value, excellence and efficiency. They apply to all Court personnel: Members, managers, auditors and staff in administrative functions. 1. The Members shall refrain from any professional activity outside the Court, and

from any other outside activity that is incompatible with the principles of independence and readiness with regard to the performance of their duties as specified in Article 286(3) and (4) TFEU. 2. To that end, any existing or proposed outside activity shall be examined in the light of the following general criteria: (a) the activity does not undermine the Courts impartiality; (b) there is no conflict of interest; (c) the activity does not take up an excessive amount of time; it will not bring any pecuniary gain. The Council determines auditor's remunerations and allowances. Section 3 - Organization: According to the Treaty on the Functioning of the European Union (Article 287) the Court of Auditors draws up its own Rules of Procedure. These rules require the approval of the Council. The Court determines the rules for implementing these Rules of Procedure. The Court of Auditors has approximately 800 staff, including translators and administrators as well as auditors. The auditors are divided into audit groups. They prepare draft reports on which the Court takes decisions. A- A collegial body: The Court of Auditors operates as a collegial body of 27 Members. Decisions are those of the Court rather than individual judges. The opinion, decision and declaration of a chamber engage the Court's responsibility. The Court adopts its decision at a qualified majority. B- Presidency: The European Court of Auditors is headed by a President who is elected for a renewable term of three years by the Members from amongst their member. He or she chairs the Court meetings, ensures that Court decisions are implemented and that the institution and its activities are soundly managed. The President represents the Court in its external relations, in particular with the discharge authority, the other EU institutions and the supreme audit institutions of the Member and beneficiary States. On 16 January 2008, Mr. Vtor Manuel da Silva Caldeira, the Portuguese Member, was elected as the Courts 10th President. His mandate was renewed on 12 January 2011 for a second term. C- Chambers and committees: The Court organises itself around five Chambers, to which Members are assigned. There are four Chambers with responsibility for specific areas of expenditure and for revenue (vertical Chambers), and one horizontal Chamber, known as the CEAD (Coordination, Evaluation, Assurance and Development) Chamber. The Members of each Chamber elect a Dean for a renewable term of two years. Each Chamber has two areas of responsibility firstly, to adopt special reports, specific annual reports and opinions; secondly, to prepare draft observations for the annual reports on the general budget of the EU and the European Development Funds, and draft opinions for adoption by the Court as a whole.

The full Court convenes to discuss and adopt the documents for which it is solely responsible, such as the annual reports on the general budget of the EU and the European Development Funds. The Administrative Committee is made up of the Deans of the Chambers and is chaired by the President of the Court. The Committee prepares for approval by the Court all administrative matters requiring a Court decision and decisions on matters of policy, principle or strategic importance. CHAPTER 12 European Ombudsmann The European Ombudsman investigates complaints against EU institutions, bodies, offices and agencies. He is based in Strasbourg in the European Parliament. The Ombudsman's office launches investigations after receiving a complaint or on its own initiative. It is completely independent and does not take orders from any government or organisation. Once a year, it presents the European Parliament with an activity report. A- Election Parliament elects the Ombudsman for a renewable five-year term. P. Nikiforos Diamandouros, the former national ombudsman of Greece, was re-elected in January 2010 for a five-year term. B- Role The European Ombudsman investigates complaints about maladministration in the institutions and bodies of the European Union (EU). The institutions include, among others, the European Commission, the Council of the EU and the European Parliament. The European Medicines Agency and the European Foundation for the Improvement of Living and Working Conditions are examples of Union bodies that he can investigate. Only the Court of Justice, the Court of First Instance, and the Civil Service Tribunal acting in their judicial role do not fall within his jurisdiction. The Ombudsman usually conducts inquiries on the basis of complaints but can also launch inquiries on his own initiative. The Ombudsman cannot investigate: complaints against national, regional or local authorities within EU countries (government departments, state agencies and local councils), even when the complaints are about EU matters. the activities of national courts or ombudsmen. The European Ombudsman is not an appeals body for decisions taken by these entities. complaints against businesses or private individuals. C- Complaint Procedure

1) Who can complain and how?If you are a citizen of a Member State of the Union or reside in a Member State, you can make a complaint to the European Ombudsman. Businesses, associations or other bodies with a registered office in the Union may also complain to the Ombudsman. Complaints can be lodged by post, fax or e-mail. A complaint guide and form is available from the Ombudsmans office and can be downloaded from the Ombudsmans website. 2) What happens after a complaint is made? The Ombudsman may be able to solve your problem simply by informing the institution, body, office or agency concerned, but if more is required, the Ombudsman will try to find an amicable solution which puts the matter right and satisfies you. If this fails, the Ombudsman can make recommendations to the institution concerned. If it does not accept his recommendations, he can make a special report to the European Parliament so that it can take whatever political action is necessary. 3) What if he cannot investigate the complaint? If the Ombudsman is not able to investigate the complaint for example, if it concerns national, regional or local administrations in the Member States he will still do his best to help you solve your problem. This very often involves transferring the case to a member of the European Network of Ombudsmen or advising you to contact a member of the Network. Established in 1996, the Network comprises all national and regional ombudsmen in the EU Member States, the applicant countries for EU membership, Norway and Iceland, as well as committees on petitions in the EU. Among the complainants that the European Ombudsman has helped in this way are: A citizen who complained about the French organisation which manages unemployment insurance payments. With the complainants consent, the European Ombudsman transferred the complaint to the French Ombudsman who found a solution to the problem. A Polish citizen, disabled as a result of a car accident, who alleged that the national social security institution had unfairly decided to suspend payment of his benefits. With the complainants consent, the case was transferred to the Polish Ombudsman to be dealt with. Spanish citizens who called for action at the EU and national levels to address the problem of illegal immigration from North Africa. As the issue fell outside the European Ombudsmans mandate, he advised the complainants to turn to the Spanish Ombudsman regarding the national authorities and to petition the European Parliament, which has both investigatory and legislative powers that could be used in relation to this matter at the EU level. 4) Examples resolved The European Commission settled a case of late payment to a German science journalist, explained the reasons for the delay and agreed to pay interest. It confirmed that it had, in the meantime, taken measures to accelerate payments to experts. The complainant subsequently pointed out

that he had been paid within just 30 days for services rendered under his latest contract. The European Personnel Selection Office (EPSO) agreed to clarify the information it provides in its notices of recruitment competitions concerning pre-selection tests and eligibility. This followed a complaint from a Hungarian citizen who had applied to take part in a competition for assistant translators. The Ombudsman felt that providing additional clarifications would help avoid misunderstandings and improve relations with candidates. The Ombudsman criticised the Council for failing to deal properly and carefully with a request for public access to documents. This followed an inquiry which revealed that, contrary to the Councils initial response to the complainant concerning the number of relevant documents, many additional documents in fact existed. As a result of the Ombudsmans investigation, the complainant was given access to the additional documents. D- The Ombudsman's Team 1) Cabinet of the European Ombudsman The Ombudsman's Cabinet is responsible for the smooth functioning of the Ombudsman's private office and for providing advice to the Ombudsman on relations with the other EU institutions and on issues related to the Ombudsman's case-work. The Cabinet undertakes a range of administrative tasks, including managing the Ombudsman's agenda and correspondence, co-ordinating with other units in the Ombudsman's Office, and dealing with matters of protocol. Cabinet members also contribute to the drafting of speeches and articles and represent the Ombudsman at meetings, seminars, and workshops.

2) Secretariat-General The Secretary-General is responsible for strategic planning within the institution, and for overseeing the general administration of the Office. He advises the Ombudsman on the Office's structure and management, on the planning of its activities, and the monitoring of its work and performance. With regard, specifically, to the work of the Legal Department, the Secretary-General advises the Ombudsman on legal strategy, and assists and advises the Ombudsman in dealing with complaints and inquiries. Finally, the Secretary-General co-ordinates relations between the Ombudsman's Office and the other European institutions and has a key role to play in developing relations with ombudsman offices throughout Europe and in reaching out to European citizens.

3) Legal Department The Legal Department consists mainly of lawyers whose major responsibility is to analyse the complaints received by the European Ombudsman and conduct inquiries under the supervision of the Head of the Department. The Head of the Legal Department also advises the Ombudsman on the legal strategy and direction of the institution and manages the Department.

Each Head of Legal Unit supervises a team of legal officers and trainees with a view to ensuring high quality complaint-handling. They assist the Head of the Legal Department in ensuring that the Department's work is accurate, timely, and consistent. This involves promoting and monitoring compliance with internal procedures, standards, and deadlines. Heads of Legal Unit also have their own responsibilities, similar to those of legal officers described below. They also represent the Ombudsman at certain public events. They all report to the Head of the Legal Department, with whom they meet regularly. The Legal Officers deal with complaints, which may be submitted to the Ombudsman in any of the 23 Treaty languages of the European Union. They also propose and carry out own-initiative inquiries, reply to requests for information from citizens, provide assistance to the Ombudsman on legal matters, advise on the legal procedures, developments, and traditions of their respective Member States, and make presentations about the Ombudsman's work. PART TWO European Judicial Institutions Chapter 13 The Court of Justice of the European Union Since the establishment of the Court of Justice of the European Union in 1952, its mission has been to ensure that "the law is observed" "in the interpretation and application" of the Treaties. As part of that mission, the Court of Justice of the European Union: - reviews the legality of the acts of the institutions of the European Union, - ensures that the Member States comply with obligations under the Treaties, and - interprets European Union law at the request of the national courts and tribunals. The Court thus constitutes the judicial authority of the European Union and, in cooperation with the courts and tribunals of the Member States, it ensures the uniform application and interpretation of European Union law. The Court of Justice of the European Union, which has its seat in Luxembourg, consists of three courts: the Court of Justice, the General Court (created in 1988) and the Civil Service Tribunal (created in 2004). Since their establishment, approximately 15 000 judgments have been delivered by the three courts. NB: Following the entry into force of the Treaty of Lisbon on 1 December 2009, the European Union now has legal personality and has acquired the competences previously conferred on the European Community. Community law has therefore become European Union law, which also includes all the provisions previously adopted under the Treaty on European Union as applicable before the Treaty of Lisbon. In the following presentation, the term Community law' will nevertheless be used where reference is being made to the case-law of the Court of Justice before the entry into force of the Treaty of Lisbon. The European Atomic Energy Community (Euratom) continues to exist alongside the European Union. Given that the jurisdiction of the Court of Justice in respect of Euratom is, in principle, the same as its jurisdiction in relation to the European Union, and to make the following presentation clearer, any reference to European Union law will also

cover the law governing Euratom.

Section 1 - Composition The Court of Justice has one judge per EU country. The Court is helped by eight advocates-general whose job is to present opinions on the cases brought before the Court. They must do so publicly and impartially. Section 2 - Nomination Each judge and advocate-general is appointed for a term of six years, which can be renewed. They are chosen from among individuals whose independence is beyond doubt and who possess the qualifications required for appointment, in their respective countries, to the highest judicial offices, or who are of recognised competence.

Section 3 - Status The Court of Justice has adopted a code of conduct. General principles: Members shall devote themselves fully to the performance of their duties. Members shall refrain from making any statement outside the Court which may harm the reputation of the Court or which may be interpreted as the adoption of a position by the Court on issues falling outside its institutional role. Integrity: Members shall not accept gifts of any kind which might call into question their independence. Impartiality: Members shall avoid any situation which may give rise to a conflict of interest. Declaration as to financial interests: On taking up their duties, Members shall submit a declaration as to their financial interests to the President of the Court of Justice. The declaration shall be worded as follows: I declare that I have no interest in any property or asset which might compromise my impartiality and my independence in the performance of my duties'. Other activities: Members who wish to take part in an external activity shall request prior authorisation from the Court or Tribunal of which they are a Member. They shall undertake, however, to comply with their obligation to be available so as to devote themselves fully to the performance of their duties. Members may be authorised to participate in teaching activities, conferences, seminars or symposia, but may not receive any uncustomary financial remuneration for doing so. Members may also be authorised to engage in activities of an academic nature and to assume unremunerated honorary duties in foundations or similar bodies in the cultural, artistic, social, sporting or charitable fields and in teaching or research establishments. In that connection, they shall undertake not to engage in any managerial or administrative activities which might compromise their independence or their availability or which might give rise to a conflict of interest. The expression foundations or similar bodies' means non-profit-making establishments or associations which carry out activities in the general

interest in the fields referred to. Undertakings of Members after ceasing to hold office: After ceasing to hold office, Members shall continue to be bound by the duty of discretion. Members shall undertake that after ceasing to hold office, they will not become involved: - in any manner whatsoever in cases which were pending before the Court or Tribunal of which they were a Member when they ceased to hold office; - in any manner whatsoever in cases directly and clearly connected with cases, including concluded cases, which they have dealt with as Judge or Advocate General;and that, for a period of three years from the date of their ceasing to hold office, they will not act - as representatives of parties, in either written or oral pleadings, in cases before the Community judicature. Former Members may be involved as counsel, adviser or expert in other cases or provide a legal opinion, provided that they comply with these obligations. Section 3 Internal organization A- The President The Judges of the Court of Justice elect one of themselves as President for a renewable term of three years. Vassilios SKOURIS is the current President. The President directs the work of the Court and presides at hearings and deliberations of the full Court or the Grand Chamber. The Registrar is the institution's secretary general and manages its departments under the authority of the President of the Court. B- Chambers The Court may sit as a full court, in a Grand Chamber of 13 Judges or in Chambers of three or five Judges. The Court sits as a full court (or in plenary session) in the particular cases prescribed by the Statute of the Court (including proceedings to dismiss the European Ombudsman or a Member of the European Commission who has failed to fulfil his or her obligations) and where the Court considers that a case is of exceptional importance. It sits in a Grand Chamber when a Member State or an institution which is a party to the proceedings so requests, and in particularly complex or important cases. Other cases are heard by Chambers of three or five Judges. The Presidents of the Chambers of five Judges are elected for three years, and those of the Chambers of three Judges for one year.

Plenary sitting are now very rare, and the court mostly sits in chambers of three or five judges. The court acts as a collegial body: decisions are those of the court rather than of individual judges; no minority opinions are given and indeed the existence of a majority decision rather than unanimity is never suggested. Section 5 Jurisdiction

References for preliminary rulings (renvoi prjudiciel) The Court of Justice cooperates with all the courts of the Member States, which are the ordinary courts in matters of European Union law. To ensure the effective and uniform application of European Union legislation and to prevent divergent interpretations, the national courts may, and sometimes must, refer to the Court of Justice and ask it to clarify a point concerning the interpretation of EU law, so that they may ascertain, for example, whether their national legislation complies with that law. A reference for a preliminary ruling may also seek the review of the validity of an act of EU law. The Court of Justice's reply is not merely an opinion, but takes the form of a judgment or reasoned order. The national court to which it is addressed is, in deciding the dispute before it, bound by the interpretation given. The Court's judgment likewise binds other national courts before which the same problem is raised. It is thus through references for preliminary rulings that any European citizen can seek clarification of the European Union rules which affect him. Although such a reference can be made only by a national court, all the parties to the proceedings before that court, the Member States and the institutions of the European Union may take part in the proceedings before the Court of Justice. In that way, several important principles of EU law have been laid down by preliminary rulings, sometimes in reply to questions referred by national courts of first instance. Actions for failure manquement) to fulfil obligations (recours en

These actions enable the Court of Justice to determine whether a Member State has fulfilled its obligations under European Union law. Before bringing the case before the Court of Justice, the Commission conducts a preliminary procedure in which the Member State concerned is given the opportunity to reply to the complaints addressed to it. If that procedure does not result in the Member State terminating the failure, an action for infringement of EU law may be brought before the Court of Justice. The action may be brought by the Commission - as, in practice, is usually the case - or by a Member State. If the Court finds that an obligation has not been fulfilled, the State must bring the failure to an end without delay. If, after a further action is brought by the Commission, the Court of Justice finds that the Member State concerned has not complied with its judgment, it may impose on it a fixed or periodic financial penalty. However, if measures transposing a directive are not notified to the Commission, it may propose that the Court impose a pecuniary penalty on the Member State concerned, once the initial judgment establishing a failure to fulfil obligations has been delivered.

Actions for annulment (recours en annulation) By an action for annulment, the applicant seeks the annulment of a measure (in particular a regulation, directive or decision) adopted by an institution, body, office or agency of the European Union. The Court of Justice has exclusive jurisdiction over actions brought by a Member State against the European Parliament and/or against the Council (apart from Council measures in respect of State aid, dumping and implementing powers) or brought by one European Union institution against another. The General Court has jurisdiction, at first instance, in all other actions of this type and particularly in actions brought by individuals. Actions for failure to act (recours en carence) These actions enable the lawfulness of the failure of the institutions, bodies, offices or agencies of the European Union to act to be reviewed. However, such an action may be brought only after the institution concerned has been called on to act. Where the failure to act is held to be unlawful, it is for the institution concerned to put an end to the failure by appropriate measures. Jurisdiction to hear actions for failure to act is shared between the Court of Justice and the General Court according to the same criteria as for actions for annulment. Appeals (pourvoi) Appeals on points of law only may be brought before the Court of Justice against judgments and orders of the General Court. If the appeal is admissible and well founded, the Court of Justice sets aside the judgment of the General Court. Where the state of the proceedings so permits, the Court of Justice may itself decide the case. Otherwise, it refers the case back to the General Court, which is bound by the decision given by the Court of Justice on the appeal. Reviews (rexamen) Decisions of the General Court on appeals against decisions of the European Union Civil Service Tribunal may, in exceptional circumstances, be reviewed by the Court of Justice as provided in the Protocol on the Statute of the Court of Justice of the European Union. Section 6 Procedure Whatever the type of case, there is always a written stage and usually an oral stage, which is public. However, a distinction must be drawn between, first, references for preliminary rulings and, second, other actions, known as direct actions'. A- Commencement of proceedings before the Court and the written procedure In references for preliminary rulings The national court submits questions to the Court of Justice about the interpretation or validity of a provision of European Union law, generally in the form of a judicial decision in accordance with national procedural rules. When that request has been translated into all the European Union languages by the Court's translation service, the Registry notifies it to the parties to the national proceedings, and also to all the Member States and the

institutions of the European Union. A notice is published in the Official Journal of the European Union stating, inter alia, the names of the parties to the proceedings and the content of the questions. The parties, the Member States and the institutions have two months within which to submit written observations to the Court of Justice. In direct actions An action before the Court must be brought by application addressed to the Registry. The Registrar publishes a notice of the action in the Official Journal, setting out the applicant's claims and arguments. At the same time, the application is served on the party sued, who has one month within which to lodge a defence. The applicant may lodge a reply and the defendant a rejoinder, the time allowed being one month in each instance. The time-limits for lodging these documents must be complied with unless an extension is granted by the President. In both types of action, a Judge-Rapporteur and an Advocate General, responsible for monitoring the progress of the case, are appointed by the President and the First Advocate General respectively. B- Preparatory inquiries and the report for the hearing In all proceedings, once the written procedure is closed, the parties are asked to state, within one month, whether and why they wish a hearing to be held. The Court decides, after reading the report of the Judge-Rapporteur and hearing the views of the Advocate General, whether any preparatory inquiries are needed, what type of formation the case should be assigned to, and whether a hearing should be held for oral argument, for which the President will fix the date. The Judge-Rapporteur summarises, in a report for the hearing, the facts alleged and the arguments of the parties and any interveners. The report is made public in the language of the case at the hearing. C- The public hearing and the Advocate General's opinion The case is argued at a public hearing, before the bench and the Advocate General. The Judges and the Advocate General may put to the parties any questions they consider appropriate. Some weeks later, the Advocate General delivers his or her Opinion before the Court of Justice, again in open court. He or she analyses in detail the legal aspects of the case and suggests completely independently to the Court of Justice the response which he or she considers should be given to the problem raised. This marks the end of the oral stage of the proceedings. If it is decided that the case raises no new question of law, the Court may decide, after hearing the Advocate General, to give judgment without an Opinion. D- Judgments The Judges deliberate on the basis of a draft judgment drawn up by the JudgeRapporteur. Each Judge of the formation concerned may propose changes. Decisions of the Court of Justice are taken by majority and no record is made public of any dissenting opinions. Judgments are signed by all the Judges who took part in the deliberation and their operative part is pronounced in open court. Judgments and the Opinions of the Advocates General are available on the CURIA Internet site on the day they are delivered. They are, in most cases, subsequently published in the European Court Reports.

E- Special forms of procedure The simplified procedure Where a question referred for a preliminary ruling is identical to a question on which the Court has already been called on to rule, or where the answer to the question admits of no reasonable doubt or may be clearly deduced from existing case-law, the Court may, after hearing the Advocate General, give its decision by reasoned order, citing in particular a previous judgment relating to that question or the relevant case-law. The expedited procedure The expedited procedure enables the Court to give its rulings quickly in very urgent cases by reducing the time-limits as far as possible and giving such cases absolute priority. On application by one of the parties, the President of the Court may decide, on a proposal from the Judge-Rapporteur, and after hearing the Advocate General and the other parties, whether the particular urgency of the case requires the use of the expedited procedure. Such a procedure can also be used for references for preliminary rulings. In that case, the application is made by the national court seeking the preliminary ruling and must set out in the application the circumstances establishing that a ruling on the question put to the Court is a matter of exceptional urgency. Applications for interim measures Applications for interim measures seek suspension of the operation of measures which an institution has adopted and which form the subject-matter of an action, or any other interim order necessary to prevent serious and irreparable damage to a party. F- The costs of proceedings There are no court fees for proceedings before the Court of Justice. On the other hand, the Court does not meet the fees and expenses of the lawyer entitled to practice before a court of a Member State by whom the parties must be represented. However, a party unable to meet all or part of the costs of the proceedings may, without having to instruct a lawyer, apply for legal aid. The application must be accompanied by all necessary evidence establishing that party's lack of means. G- Language arrangements In direct actions, the language used in the application (which may be one of the 23 official languages of the European Union) will be the language of the case', that is to say the language in which the proceedings will be conducted. With references for preliminary rulings, the language of the case is that of the national court which made the reference to the Court of Justice. Oral proceedings at hearings are interpreted simultaneously, as required, into various official languages of the European Union. The Judges deliberate, without interpreters, in a common language which, traditionally, is French. Chapter 14 The General Court

Section 1- Composition The General Court is made up of at least one Judge from each Member State (27 in 2007). The Judges are appointed by common accord of the governments of the Member States after consultation of a panel responsible for giving an opinion on candidates'suitability. They are appointed for a term of office of six years, which is renewable. They appoint a Registrar for a term of office of six years. The General Court has its own Registry, but uses the services of the Court of Justice for its other administrative and linguistic requirements. The Judges perform their duties in a totally impartial and independent manner.Unlike the Court of Justice, the General Court does not have permanent Advocates General. However, that task may, in exceptional circumstances, be carried out by a Judge. Section 2- Internal organization

A- Presidency The members of the Court appoint their President, for a renewable term of three years, from amongst themselves. Attributions: same as the President of the Court of Justice. B- Chambers The General Court sits in Chambers of five or three Judges or, in some cases, as a single Judge. It may also sit as a Grand Chamber (thirteen Judges) or as a full court (or plenary court) when this is justified by the legal complexity or importance of the case. More than 80% of the cases brought before the General Court are heard by a Chamber of three Judges.The Presidents of the Chambers of five Judges are elected from amongst the Judges for a period of three years. Section 3- Jurisdiction The General Court has jurisdiction to hear: direct actions brought by natural or legal persons against acts of the institutions, bodies, offices or agencies of the European Union (which are addressed to them or are of direct and individual concern to them) and against regulatory acts (which concern them directly and which do not entail implementing measures) or against a failure to act on the part of those institutions, bodies, offices or agencies; for example, a case brought by a company against a Commission decision imposing a fine on that company; actions brought by the Member States against the Commission; actions brought by the Member States against the Council relating to acts adopted

in the field of State aid, dumping' and acts by which it exercises implementing powers; actions seeking compensation for damage caused by the institutions of the European Union or their staff; actions based on contracts made by the European Union which expressly give jurisdiction to the General Court; actions relating to Community trade marks; appeals, limited to points of law, against the decisions of the European Union Civil Service Tribunal; actions brought against decisions of the Community Plant Variety Office or of the European Chemicals Agency. The rulings made by the General Court may, within two months, be subject to an appeal, limited to points of law, to the Court of Justice. Section 4- Procedure: The General Court has its own Rules of Procedure. In general, the proceedings include a written phase and an oral phase. An application, drawn up by a lawyer or agent and sent to the Registry, opens the proceedings. The main points of the action are published in a notice, in all official languages, in the Official Journal of the European Union. The Registrar sends the application to the other party to the case, which then has a period within which to file a defence. The applicant may file a reply, within a certain time-limit, to which the defendant may respond with a rejoinder. Any person and any body, office or agency of the European Union, who/which can prove an interest in the outcome of a case before the General Court, as well as the Member States and the institutions of the European Union, may intervene in the proceedings. The intervener submits a statement in intervention, supporting or opposing the claims of one of the parties, to which the parties may then respond. In some cases, the intervener may also submit its observations at the oral phase. During the oral phase a public hearing is held. When the lawyers are heard, the Judges can put questions to the parties' representatives. The Judge-Rapporteur summarises, in a report for the hearing, the facts relied on and the arguments of each party and, if applicable, of the interveners. This document is available to the public in the language of the case. The Judges then deliberate on the basis of a draft judgment prepared by the JudgeRapporteur and the judgment is delivered at a public hearing. The procedure before the General Court is free of court fees. However, the costs of the lawyer entitled to appear before a court in a Member State, by whom the parties must be represented, are not paid by the General Court. Even so, an individual who is not able to meet the costs of the case may apply for legal aid. Interim proceedings An action brought before the General Court does not suspend the operation of the contested act. The Court may, however, order its suspension or other interim measures.The President of the General Court or, if necessary, another Judge rules on the

application for interim measures in a reasoned order.Interim measures are granted only if three conditions are met: the action in the main proceedings must appear, at first sight, to be well founded; the applicant must show that the measures are urgent and that it would suffer serious and irreparable harm without them; the interim measures must take account of the balance of the parties' interests and of public interest. The order is provisional in nature and in no way prejudges the decision of the General Court in the main proceedings. In addition, an appeal against it may be brought before the Court of Justice. Expedited procedure This procedure allows the General Court to rule quickly on the substance of the dispute in cases considered to be particularly urgent.The expedited procedure may be requested by the applicant or by the defendant. Language arrangements The language used for the application, which may be one of the 23 official languages of the European Union, will be the language of the case (without prejudice to the application of specific provisions). The proceedings in the oral phase of the procedure are simultaneously interpreted, as necessary, into different official languages of the European Union. The Judges deliberate, without interpreters, in a common language which, traditionally, is French. Section 5 Case law From the beginning of its operation until the end of 2008, the Court ruled on more than 6,200 cases. Its case-law has developed in particular in the fields of intellectual property, competition and State aid. A few examples will give a good idea of the type of cases brought before the Court. A- Community trade marks The company Henkel applied to the Office for Harmonisation in the Internal Market (Trade Marks and Designs) (OHIM), which is responsible for promoting and managing trade marks valid in all the Member States of the European Union, for registration of a trade mark for a washing powder or dishwasher tablet. The three-dimensional trade mark applied for was in the form of a round tablet with two layers coloured white and red. The application was rejected by OHIM and the applicant brought an action before the Court for annulment of the decision. According to a Community regulation, it is not possible to register a trade mark which is not distinctive. In this case, the contested trade mark was made up of the form and arrangement of the colours of the product, that is to say by the appearance of the product itself.

The Court took the view that that trade mark would not allow consumers, when choosing which product to buy, to distinguish between the goods covered by the trade mark and those made by another manufacturer. Consequently, it dismissed the company's action, since OHIM had been right to conclude that the three-dimensional trade mark was not distinctive (judgment in Henkel v OHIM, 2001). B- The scope of application of competition rules In the case of Piau v Commission, the Court reiterated that competition rules could, on some occasions, apply to sport. In that case, the Commission had rejected, on the ground of lack of Community interest, the applicant's complaint against a rule of the Fdration internationale de football (FIFA) governing the activities of players' agents. In its judgment in 2005, the Court found that football clubs and the national associations of which they are members are undertakings and associations of undertakings respectively within the meaning of Community competition law, so that FIFA itself, whose members are the national associations, constitutes an association of undertakings within the meaning of Article 81 EC, now Article 101 TFEU. Those preliminary considerations enabled the Court to hold that the rule governing the activities of players' agents constituted a decision of an association of undertakings. Those activities are intended regularly and for remuneration to bring a player and a club into contact with a view to conclusion of an employment contract or two clubs with a view to conclusion of a transfer agreement. It is, therefore, a commercial supply of services which is not specifically a sporting activity as defined in case-law. C- Mergers Airtours, a British company selling package tours from the United Kingdom, wished to acquire a competitor, First Choice. The Commission was informed by Airtours of this proposed merger. The Commission declared the merger incompatible with the common market on the ground that it would have led to Airtours having a collective dominant position. Airtours brought an action before the Court for annulment of the Commission's decision. The Court stated that, pursuant to the relevant regulation applicable at the material time, a merger may be prohibited if it will lead directly and immediately to the creation or reinforcement of a dominant position, significantly distorting effective competition in the market over a long period. The Court concluded that, because the Commission had made a number of errors of assessment, it had not shown sufficient evidence of the negative effects of the merger on competition, and the Court therefore annulled the contested decision (judgment in Airtours v Commission, 2002). D- Cartels European Union law prohibits all agreements between companies, all decisions by associations of companies and all concerted practices which are likely to affect trade between Member States and which are intended to or have the effect of preventing, restricting or distorting competition within the common market. Following a complaint, the Commission made certain checks and, in 1998, adopted a

decision finding that a number of companies participated in a set of prohibited agreements and practices in the European district heating market. The Commission imposed fines amounting to a total of around EUR 92 million on the companies participating in that cartel. The Court dismissed almost entirely the actions for annulment brought against the Commission's decision, after finding that there was proof of, firstly, the existence of the various elements constituting the overall agreement and, secondly, the individual involvement of the companies in the anticompetitive conduct for which they had been held liable, except with regard to the length of time one of the companies participated in the agreement and the geographical range of the agreement as regards another company. The fines imposed by the Commission were, moreover, on the whole confirmed by the Court in the total sum of EUR 83 410 000. However, the fines imposed on two companies were reduced (judgment in HFB and Others v Commission, 2002). E- State aid By a Law of 1991, a banking organisation owned outright by the Land of North-Rhine Westphalia and having the task of granting financial assistance for the building of housing was transferred to a banking organisation governed by public law. The Land received as payment a sum much lower than the market price. The Commission decided that the transaction was unlawful State aid, incompatible with the common market. According to the Commission, the difference between the market value and the amount paid was the sum of around EUR 808 million, and this constituted unlawful State aid. The Land and the two banking organisations then sought annulment of the Commission decision before the Court. The Court ruled that the Commission, which is subject to a duty to give reasons, had failed to give sufficient reasons for its estimate of the market value. The Court therefore annulled the Commission decision (judgment in Westdeutsche Landesbank Girozentrale and Land Nordrhein-Westfalen v Commission, 2003). F- Access to documents Ms Hautala, a member of the European Parliament, had asked the Council of the European Union to send her a report on arms exports. Relying on its power to refuse access to such a document in order to protect the public interest in the field of international relations, the Council refused to release the report because it contained sensitive information, the disclosure of which might harm the relations of the European Union with non-Member States. In this situation, Ms Hautala brought an action before the Court seeking annulment of the Council's decision refusing to send her the report in question. In its judgment, the Court restated the principle that the public must have the widest possible access to documents, exceptions to that rule having to be interpreted and applied strictly. It said that the Council should have considered the possibility of editing certain pages likely to harm international relations and therefore looked into whether partial access to the document could be authorised. Since the Council had not taken that step, the Court annulled its decision (judgment in Hautala v Council, 1999).

CHAPTER 15- The civil service tribunal Section 1- Composition The European Union Civil Service Tribunal is composed of seven Judges appointed by the Council for a period of six years which may be renewed, following a call for applications and after taking the opinion of a panel of seven persons chosen from among former members of the Court of Justice and the General Court and lawyers of recognised competence. When appointing the Judges, the Council ensures a balanced composition of the Tribunal on as broad a geographical basis as possible from among nationals of the Member States and with respect to the national legal systems represented. Section 2- Internal organization

A- Presidency The Judges of the Tribunal elect their President from among their number for a term of three years which may be renewed. B- Chambers The Tribunal sits in Chambers of three Judges. However, whenever the difficulty or importance of the questions of law raised justifies it, a case may be referred to the full court. Furthermore, in cases determined by its Rules of Procedure, it may sit in a Chamber of five Judges or as a single Judge. The Judges appoint a Registrar for a term of six years. The Tribunal has its own Registry, but makes use of the services of the Court of Justice for its other administrative and linguistic needs. Section 3- Jurisdiction Within the European Union's judicial institution, it is the Civil Service Tribunal whose special field is disputes involving the European Union civil service, this jurisdiction having previously been exercised by the Court of Justice and then, following its creation in 1989, by the Court of First Instance. It has jurisdiction to hear and determine at first instance disputes between the European Union and its servants pursuant to Article 270 TFEU, which as a result represents some 120 cases a year for approximately 35 000 members of the staff of the European Union's institutions. These disputes concern not only questions to do with working relations in the strict sense (pay, career progress, recruitment, disciplinary measures etc.), but also the social security system (sickness, old age, invalidity, accidents at work, family allowances etc.).

It also has jurisdiction in disputes between all bodies or agencies and their staff in respect of which jurisdiction is conferred on the Court of Justice of the European Union (for example, disputes between Europol, the Office for Harmonisation in the Internal Market (OHIM) or the European Investment Bank and their staff). On the other hand, it may not hear administrations and their employees. and determine cases between national

The decisions given by the Tribunal may, within two months, be subject to an appeal, limited to questions of law, to the General Court. Section 4- Procdure The procedure before the Civil Service Tribunal is governed by the provisions of the Statute of the Court of Justice of the European Union, in particular those contained in Annex I thereto and by the Tribunal's Rules of Procedure, which entered into force on 1 November 2007. As a rule, the proceedings include a written phase and an oral phase. The written phase An application, drawn up by a lawyer and sent to the Registry, opens the proceedings. The Registrar sends the application to the opposing party. The latter has a period of two months to file a defence.The Tribunal may decide that a second exchange of pleadings is necessary. Any person who can prove an interest in the outcome of a case before the Tribunal, as well as the Member States and the institutions of the European Union, may intervene in the proceedings. The intervener files a statement in intervention, supporting or opposing the claims of one of the parties, to which the latter may then respond. The intervener may also submit his observations at the oral phase. The oral phase During the oral phase a public hearing is usually held. During the hearing, the Judges can put questions to the parties' representatives and, where appropriate, to the parties themselves. The Judge-Rapporteur draws up a preliminary report for the hearing, containing the essential points in the case and indicating the points on which the parties are to focus their arguments. This document is available to the public in the language of the case. The Judges deliberate on the basis of draft grounds prepared by the Judge-Rapporteur. The judgment is delivered at a public hearing. Costs The procedure before the Tribunal is free of court fees. On the other hand, the costs of the lawyer entitled to appear before a court in a Member State, by whom the parties must be represented, are not paid by the Tribunal. A party who is not able to meet the costs of the case may, however, apply for legal aid. Amicable settlement of disputes

At all stages of the procedure, including the time when the application is filed, the Tribunal may try to facilitate an amicable settlement of the dispute. Proceedings for interim measures Bringing an action before the Tribunal does not cause the operation of the contested act to be suspended. The Tribunal may, however, order suspension of the act or other interim measures. The President of the Tribunal or, in some circumstances, another Judge rules on the application for interim measures by way of reasoned order. Interim measures are granted only if three conditions are met: the action in the main proceedings must appear, at first sight, to be well founded; the applicant must establish the urgency of the measures in the absence of which he would suffer serious and irreparable harm; the interim measures must take account of the weighing up of the parties' interests and the public interest. The order is provisional in nature and in no way prejudges the decision of the Tribunal in the main proceedings. In addition, an appeal against it may be brought before the General Court. Language arrangements The language used for the application, which may be one of the 23 official languages of the European Union, will be the language of the case. The proceedings in the oral phase of the procedure are simultaneously interpreted, as necessary, into various official languages of the European Union. The judges deliberate without interpreters in a common language, French. PART THREE European financial Institutions CHAPTER 16- The European Investment Bank (EIB) The European Investment Bank is owned by the 27 EU countries. It borrows money on the capital markets and lends it at a low interest rate to projects that improve infrastructure, energy supply or environmental standards both inside the EU and in neighbouring or developing countries. It is based in Luxembourg. Shareholders 27 EU countries Governance working dynamics and responsibilities of the Board of Governors, Board of Directors, Audit Committee and Management Committee Control and evaluation ensuring the integrity and soundness of the Banks operations Organisation departments and staff members

Section 1- Shareholders The shareholders of the European Investment Bank are the 27 Member States of the European Union. The EU Member States are fully eligible for Bank financing operations, without any geographical or sectoral quotas being applied. Each Member States share in the Banks capital is based on its economic weight within the European Union (expressed in GDP) at the time ofits accession. Under its Statute, the Bank is authorised to have maximum loans outstanding equivalent to two and a half times its capital. At 1 April 2010, the Banks subscribed capital amounted to more than EUR 232bn. Section 2- Governance A- The Board of Governors The Board of Governors comprises Ministers designated by each of the 27 Member States, usually Finance Ministers. It lays down credit policy guidelines, approves the annual accounts and balance sheet, and decides on the Banks participation in financing operations outside the European Union as well as on capital increases. It also appoints the members of the Board of Directors, the Management Committee and the Audit Committee. Chairman: Jean-Claude JUNCKER B- The Board of Directors The Board of Directors has sole power to take decisions in respect of loans, guarantees and borrowings. As well as seeing that the Bank is properly run, it ensures that the Bank is managed in keeping with the provisions of the Treaty and the Statute and with the general directives laid down by the Governors. Its members are appointed by the Governors for a renewable period of five years following nomination by the Member States and are responsible solely to the Bank. The Board of Directors consists of 28 Directors, with one Director nominated by each Member State and one by the European Commission. There are 18 Alternates, meaning that some of these positions will be shared by groupings of States. Furthermore, in order to broaden the Board of Directors professional expertise in certain fields, the Board is able to co-opt a maximum of six experts (three Directors and three Alternates), who participate in the Boardmeetings in an advisory capacity, without voting rights. Decisions are taken by a majority consisting of at least one third of members entitled to vote and representing at least 50% of the subscribed capital. The President of the Management Committee or, in his absence, one of the VicePresidents, shall preside over meetings of the Board of Directors but shall not vote. As the Board of the Directors is non-resident, members do not receive a remuneration

from the Bank. For each meeting day of the Board (normally ten per year) in which they participate Members and Alternates of the Board of Directors receive an indemnity of EUR 600. In addition the Bank pays a per diem of EUR 200 as a lump-sum reimbursement for hotel and related expenses to be covered by individual Board Members and reimburses travel expenses. C- The Management Committee: The Management Committee is the Banks permanent collegiate executive body. It has nine members. Under the authority of the President and the supervision of the Board of Directors, it oversees the day-to-day running of the EIB, prepares decisions for Directors and ensures that these are implemented. The President chairs the meetings of the Management Committee. The members of the Management Committee are responsible solely to the Bank; they are appointed by the Board of Governors, on a proposal from the Board of Directors, for a renewable period of six years. According to the Banks Statute, the President is also Chairman of the Board of Directors. Since the beginning of the Bank's activities, the emoluments of the members of the Management Committee (President and Vice-Presidents of the EIB) have been modelled on those of the President and Vice-Presidents of the European Commission respectively. As decided by the Board of Governors, social benefits for members of the Management Committee follow the same principles of analogy as applied to Commissioners; as a result, certain benefits are the same as for the Staff of the Bank, especially as regards medical insurance. The current President is: Philippe MAYSTADT D- The Audit Committee: The Audit Committee is an independent body answerable directly to the Board of Governors and responsible for verifying that the operations of the Bank have been conducted and its books kept in a proper manner. At the time of approval of the financial statements by the Board of Directors, the Audit Committee issues its statements thereon. The reports of the Audit Committee on the results of its work during the preceding year are sent to the Board of Governors together with the annual report of the Board of Directors. The Audit Committee is composed of six Members, appointed by the Board of Governors for a non-renewable term of office of six consecutive financial years. As the Audit Committee is non-resident, members do not receive a remuneration from the Bank. For each meeting day of the Committee (normally ten per year) in which they participate Members and Observers of the Audit Committee receive an indemnity of EUR 1050. In addition the Bank pays a per diem of EUR 200 as a lump-sum reimbursement for hotel and related expenses to be covered by individual Committee Members and reimburses travel expenses. Chairman: ric MATHAY Section 3- Control and evaluation The following controls stem from the Bank's Statute or other internal organisational provisions:

Audit Committee External Auditors Internal Audit Financial Control Credit Risk Operations Evaluation As both a Community body and a financial institution, the Bank cooperates with other independent control bodies entrusted with such tasks under the Treaty or other regulations: European Court of Auditors OLAF European Ombudsman Section 4- Organisation structure The EIB's organisation structure consists of the following Directorates and Departments: General Secretariat and Legal Affairs Strategy and Corporate Centre Directorate for Operations in the European Union and Candidate Countries Directorate for Operations outside the European Union and Candidate Countries Transaction Management and Restructuring Directorate Finance Directorate Projects Directorate Risk Management Directorate Inspectorate General EIB Group Compliance Office Human Resources Department Representation on Board of Directors of European Bank for Reconstruction and Development The Bank's departments: evaluate, appraise and finance projects, raise resources on the capital markets and manage the treasury, assess and manage risks attaching to EIB operations, carry out necessary economic or financial background studies. Working in multidisciplinary teams, they prepare and implement the decisions of the Bank's management.

Section 5- Role and services The European Investment Bank supports projects in the EU countries, and invests in future member and partner countries.

It borrows money on the capital markets rather than drawing on the EU budget. The money is lent on favourable terms to projects in line with EU policy objectives. In 2008, the EIB raised nearly 60 bn. The EIB works on a non-profit basis and lends at a rate close to the cost of borrowing. Services Loans: granted to viable capital spending programmes or projects in both the public and private sectors. Recipients range from large corporations to municipalities and small businesses. Technical assistance: provided by a team of expert economists, engineers and specialists to complement EIB financing facilities. Guarantees: available to a wide range of bodies, e.g. banks, leasing companies, guarantee institutions, mutual guarantee funds, special purpose vehicles and others. Venture capital: requests for venture capital should be addressed directly to an intermediary. Lending within the EU About 90% of loans go to programmes and projects within the EU. The EIB has 6 priority objectives for lending, set out in the Banks business plan: Cohesion and convergence Support for small and medium-sized enterprises (SMEs) Environmental sustainability Implementation of the Innovation 2010 Initiative (i2i) Development of Trans-European transport and energy networks (TENs) Sustainable, competitive and secure energy Outside the EU The European Investment Bank supports EU development and cooperation policies in partner countries. Current policy mandates include: Southern and eastern Europe Neighbourhood policy: The Mediterranean neighbourhood Russia and the eastern neighbourhood Development and cooperation countries: Africa, Caribbean and Pacific (and Overseas Countries and Territories) South Africa Asia and Latin America

CHAPTER 17- Monetary and Financial Institutions of the European Union

Section 1- Introduction: ECB, SEBC and the Eurosystem Since 1 January 1999 the European Central Bank (ECB) has been responsible for conducting monetary policy for the euro area - the worlds largest economy after the United States. The euro area came into being when responsibility for monetary policy was transferred from the national central banks of 11 EU Member States to the ECB in January 1999. Greece joined in 2001, Slovenia in 2007, Cyprus and Malta in 2008, Slovakia in 2009 and Estonia in 2011. The creation of the euro area and of a new supranational institution, the ECB, was a milestone in the long and complex process of European integration. To join the euro area, the 17 countries had to fulfil the convergence criteria, as will other EU Member States prior to adopting the euro. The criteria set out the economic and legal preconditions for countries to participate successfully in Economic and Monetary Union. European Central Bank (ECB) The legal basis for the single monetary policy is the Treaty establishing the European Community and the Statute of the European System of Central Banks and of the European Central Bank. The Statute established both the ECB and the European System of Central Banks (ESCB) as from 1 June 1998. The ECB was established as the core of the Eurosystem and the ESCB. The ECB and the national central banks together perform the tasks they have been entrusted with. The ECB has legal personality under public international law. European System of Central Banks (ESCB) The ESCB comprises the ECB and the national central banks (NCBs) of all EU Member States (Article 107.1 of the Treaty) whether they have adopted the euro or not. Eurosystem The Eurosystem comprises the ECB and the NCBs of those countries that have adopted the euro. The Eurosystem and the ESCB will co-exist as long as there are EU Member States outside the euro area. Euro area The euro area consists of the EU countries that have adopted the euro. Section 2- ECB The ECB is the central bank for Europe's single currency, the euro. The ECBs main task is to maintain the euro's purchasing power and thus price stability in the euro area. The euro area comprises the 17 European Union countries that have introduced the euro since 1999. The ECB is based in Frankfurt, Germany. A- Structure: Three independant bodies:

1- The Governing Council The Governing Council is the main decision-making body of the ECB. It consists of the six members of the Executive Board, plus the governors of the national central banks of the 17 euro area countries. Responsibilities to adopt the guidelines and take the decisions necessary to ensure the performance of the tasks entrusted to the Eurosystem; to formulate monetary policy for the euro area. This includes decisions relating to monetary objectives, key interest rates, the supply of reserves in the Eurosystem, and the establishment of guidelines for the implementation of those decisions. Meetings and decisions The Governing Council usually meets twice a month at the Eurotower in Frankfurt, Germany. At its first meeting each month, the Governing Council assesses economic and monetary developments and takes its monthly monetary policy decision. At its second meeting, the Council discusses mainly issues related to other tasks and responsibilities of the ECB and the Eurosystem. While the minutes of the meetings are not published, the monetary policy decision is explained in detail at a press conference held shortly after the first meeting each month. The President, assisted by the Vice-President, chairs the press conference. Mario Draghi is the current President of the ECB. 2- The Executive Board The Executive Board consists of the President Vice-President and four other members All members are appointed by the European Council, acting by a qualified majority. Responsibilities: to prepare Governing Council meetings; to implement monetary policy for the euro area in accordance with the guidelines specified and decisions taken by the Governing Council. In so doing, it gives the necessary instructions to the euro area NCBs; to manage the day-to-day business of the ECB; to exercise certain powers delegated to it by the Governing Council. These include some of a regulatory nature.

3- The General Council The General Council comprises the President of the ECB; the Vice-President of the ECB; and the governors of the national central banks (NCBs) of the 27 EU Member States. In other words, the General Council includes representatives of the 17 euro area countries and the 10 non-euro area countries. The other members of the ECB's Executive Board, the President of the EU Council and one member of the European Commission may attend the meetings of the General Council but do not have the right to vote. The General Council contributes to: the ECB's advisory functions; the collection of statistical information; the preparation of the ECB's annual report; the establishment of the necessary rules for standardising the accounting and reporting of operations undertaken by the NCBs; the taking of measures relating to the establishment of the key for the ECB's capital subscription other than those laid down in the Treaty; the laying-down of the conditions of employment of the members of staff of the ECB; and the necessary preparations for irrevocably fixing the exchange rates of the currencies of the "EU Member States with a derogation" against the euro. In accordance with the Statute of the European System of Central Banks and of the European Central Bank, the General Council will be dissolved once all EU Member States have introduced the single currency. B- Mission Tasks The tasks of the ESCB and of the Eurosystem are laid down in the Treaty establishing the European Community. They are specified in the Statute of the European System of Central Banks (ESCB) and of the European Central Bank (ECB). The Statute is a protocol attached to the Treaty. The Treaty text refers to the ESCB' rather than to the 'Eurosystem'. It was drawn up on the premise that eventually all EU Member States will adopt the euro. Until then, the Eurosystem will carry out the tasks. Objectives "The primary objective of the ESCB shall be to maintain price stability". And: "without prejudice to the objective of price stability, the ESCB shall support the general economic policies in the Community with a view to contributing to the

achievement of the objectives of the Community as laid down in Article 2." (Treaty article 105.1) The objectives of the Union (Article 2 of the Treaty on European Union) are a high level of employment and sustainable and non-inflationary growth. Basic tasks According to the Treaty establishing the European Community (Article 105.2), the basic tasks are the definition and implementation of monetary policy for the euro area; the conduct of foreign exchange operations; the holding and management of the official foreign reserves of the euro area countries (portfolio management). the promotion of the smooth operation of payment systems. Further tasks Banknotes: the ECB has the exclusive right to authorise the issuance of banknotes within the euro area. Statistics: in cooperation with the NCBs, the ECB collects statistical information necessary for fulfilling the tasks, either from national authorities or directly from economic agents. Financial stability & supervision: the Eurosystem contributes to the smooth conduct of policies pursued by the authorities in charge related to the prudential supervision of credit institutions and the stability of the financial system. International and European cooperation: the ECB maintains working relations with relevant institutions, bodies and fora both within the EU and internationally in respect of tasks entrusted to the Eurosystem. Section 2- ESCB The European System of Central Banks (ESCB) is composed of the European Central Bank (ECB) and the national central banks (NCBs) of all 27 European Union (EU) Member States. It is not an institution: it has not legal personality; Since not all the EU states have joined the euro, the ESCB could not be used as the monetary authority of the eurozone. For this reason the Eurosystem (which excludes all the NCBs which have not adopted the euro) became the institution in charge of those tasks which in principle had to be managed by the ESCB. In accordance with the treaty establishing the European Community and the Statute of the European System of Central Banks and of the European Central Bank, the primary objective of the Eurosystem is to maintain price stability (in other words control inflation). Without prejudice to this objective, the Eurosystem shall support the general economic policies in the Community and act in accordance with the principles of an open market economy. The basic tasks to be carried out by the Eurosystem are: to define and implement the monetary policy of the eurozone;

to conduct foreign exchange operations; to hold and manage the official foreign reserves of the Member States; and to promote the smooth operation of payment systems. In addition, the Eurosystem contributes to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system. The ECB has an advisory role vis--vis the Community and national authorities on matters which fall within its field of competence, particularly where Community or national legislation is concerned. Finally, in order to undertake the tasks of the ESCB, the ECB, assisted by the NCBs, has the task of collecting the necessary statistical information either from the competent national authorities or directly from economic agents. Section 3- The Eurosystem The Eurosystem is the monetary authority of the Eurozone, the collective of European Union member states that have adopted the euro as their sole official currency. The Eurosystem consists of the European Central Bank (it decides the monetary policy) and the central banks of the member states that belong to the Eurozone (their function is to apply the monetary policy decided by the ECB). The primary objective of the Eurosystem is price stability. Secondary objectives are financial stability and financial integration. The mission statement of the Eurosystem says that the ECB and the national central banks jointly contribute to achieving the objectives. The Eurosystem has no legal personality. Current members European Central Bank Austria: sterreichische Nationalbank Belgium: Nationale Bank van Belgi/Banque nationale de Belgique Cyprus: K (Kentrike Trapeza tis Kyprou) Estonia: Eesti Pank Finland: Suomen Pankki/Finlands Bank France: Banque de France Germany: Deutsche Bundesbank Greece: (Trapeza tis Ellados) Ireland: Banc Ceannais na hireann / Central Bank of Ireland Italy: Banca d'Italia Luxembourg: Banque Centrale du Luxembourg Malta: Bank entrali ta Malta Netherlands: De Nederlandsche Bank Portugal: Banco de Portugal Slovakia: Nrodn banka Slovenska Slovenia: Banka Slovenije Spain: Banco de Espaa Section 4- European financial stabilisation mechanism:

Regulation (EU) No 407/2010 of the Council of 11 May 2010 establishing a European financial stabilisation mechanism. The mechanism provides financial assistance to Member States in financial difficulties. The financial crisis that hit the global economy at the end of 2008 has had several harmful consequences for Member States economies: the downturn in economic growth; the deterioration in the budget deficits and debt positions of the Member States; the destabilisation of financial markets. The financial difficulties experienced by a Member State may present a serious threat to the financial stability of the European Union (EU) as a whole. It is therefore necessary to establish a European facility providing financial assistance which is capable of supporting Member States in difficulty and thereby preserving the financial stability of the EU. Scope The European financial stabilisation mechanism provides assistance to Member States where: a Member State is experiencing, or is seriously threatened with, a severe financial disturbance; the financial disturbance or threat of financial disturbance is due to events beyond the control of the Member State concerned. Financial assistance The European financial stabilisation mechanism may take the form of a loan or credit line granted to Member States. A credit line is an authorisation given to a Member State to draw funds up to a specified ceiling for a given period of time. Procedure Before it can benefit from the European financial stabilisation mechanism, a Member State shall submit a request comprising: an assessment of its financial needs; an economic and financial adjustment programme describing the various measures to be taken to restore financial stability. Thereafter, the Council shall decide whether to grant financial assistance to the Member State. It shall act by a qualified majority on a proposal from the Commission. If the Council decides to grant financial assistance to the Member State, its decision contains: the procedures for the financial assistance, such as the amount, the number of payments, the availability period of the financial assistance, etc.; the general economic policy conditions: these conditions are established by the Commission. They are attached to the EU financial assistance with a view to re-establishing a sound economic situation in the Member State concerned and to restoring its capacity to finance itself on the financial markets; the economic and financial adjustment programme of the Member State. Moreover, the general economic policy conditions shall be the subject of a

Memorandum of Understanding between the Member State and the Commission. The Commission shall then re-examine compliance with these conditions regularly in collaboration with the European Central Bank. Any changes to these conditions may result in an adjustment of the economic and financial adjustment programme of the Member State. Granting of financial assistance The disbursement of loans or the opening of credit lines granted to Member States shall be managed by the Commission. The latter shall verify at regular intervals whether the economic policy of the beneficiary Member State accords with its adjustment programme. The Commission shall also be authorised to borrow on the capital markets or from financial institutions in order to finance the loans granted to Member States. Moreover, the Court of Auditors shall have the right to carry out financial controls and audits in order to verify the legality of financial assistance granted by the EU. Compatibility with other mechanisms providing financial assistance The European financial stabilisation mechanism is compatible with the facility providing medium-term financial assistance for balances of payments. This financial assistance is for Member States which have not adopted the euro and are experiencing difficulties in their balance of payments. The European financial stabilisation mechanism also does not exclude recourse to financing outside the EU, in particular by the International Monetary Fund. In that case the Commission shall examine whether the European financial stabilisation mechanism is compatible with the outside financing. Review of the European financial stabilisation mechanism Six months after the entry into force of this Regulation, the Commission shall review whether the exceptional circumstances which justified the establishment of the European financial stabilisation mechanism remain. If the European mechanism is maintained, the Commission shall conduct the same review every six months. European Financial Stability Facility (EFSF) The European Financial Stability Facility (EFSF) was created by the euro area Member States following the decisions taken on 9 May 2010 within the framework of the Ecofin Council. The EFSFs mandate is to safeguard financial stability in Europe by providing financial assistance to euro area Member States. EFSF is authorised to use the following instruments linked to appropriate conditionality: Provide loans to countries in financial difficulties Intervene in the debt primary and secondary markets. Intervention in the secondary market will be only on the basis of an ECB analysis recognising the existence of exceptional financial market circumstances and risks to financial stability Act on the basis of a precautionary programme Finance recapitalisations of financial institutions through loans to governments

To fulfill its mission, EFSF issues bonds or other debt instruments on the capital markets. EFSF is backed by guarantee commitments from the euro area Member States for a total of 780 billion and has a lending capacity of 440 billion. EFSF has been assigned the best possible credit rating; AAA by Standard & Poors and Fitch Ratings, Aaa by Moodys. EFSF is a Luxembourg-registered company owned by Euro Area Member States. It is headed by Klaus Regling, former Director-General for economic and financial affairs at the European Commission.