Lernzettel: European Union: Foundations and Institutions

📋 Course Outline

1. Economic scale and integration of the European Union
2. Historical development and constitutional foundations of European integration
3. The Single Market: freedoms, harmonisation, and integration challenges
4. Composition, political groups, and legislative functions of the European Parliament
5. Composition, appointment, and roles of the European Commission
6. Role and challenges of the High Representative for Foreign Affairs and Security Policy
7. Functions and composition of the Court of Justice of the European Union
8. Advisory and financial institutions supporting EU policy and legislation

📖 1. Economic scale and integration of the European Union

🔑 Key Concepts & Definitions

• Single Market : The integrated European market that facilitates the free movement of goods, services, people, and capital among member states, supported by harmonisation of rules and standards.
• European Union : A political and economic union of European countries that forms the third largest economic area in the world, characterized by high levels of economic integration.
• European Economic and Governance Issues : The set of economic policies, integration processes, and governance structures that define the functioning and development of the EU.

📝 Essential Points

• The EU is the third largest economic area globally after the US and China, measured by GDP in current US dollars.
• The EU is the second largest exporter after China and the second largest importer after the US.
• The EU is the most integrated economic area worldwide, achieved through trade, investment, and labor mobility facilitation.

💡 Key Takeaway

Understanding the EU's global economic stature and its unique level of integration is essential for grasping its influence on international trade and policy.

📖 2. Historical development and constitutional foundations of European integration

🔑 Key Concepts & Definitions

• The Single Market : The integrated market established by the EU that allows free movement of goods, services, people, and capital, supported by harmonisation of rules and standards.
• Maastricht Treaty (1992) : A treaty that deepened European integration by establishing EU citizenship, promoting social protection, and preparing for a single currency.
• 1957-1992 : The period during which the European Economic Community was developed, marked by the creation of the Common Market and the gradual removal of trade barriers.
• Treaty of Paris (1951) : The treaty that established the European Coal and Steel Community aiming to pool coal and steel resources to prevent war and foster common governance.
• Treaty of Rome (1957) : The treaty that created the European Economic Community, expanding ECSC principles and establishing a Common Market with four freedoms.

📝 Essential Points

• The ECSC was established in 1951 to pool coal and steel resources to make war impossible and foster common governance.
• The Treaty of Rome in 1957 created the European Economic Community, introducing the Common Market and four freedoms.
• The Single European Act of 1986 removed non-tariff barriers and introduced mutual recognition of norms to advance the Single Market.
• The Maastricht Treaty of 1992 deepened integration by establishing EU citizenship and preparing for a single currency.
• The Lisbon Treaty of 2007 consolidated treaties, granted the EU legal personality, and enhanced powers in social, environmental, and foreign policy.

💡 Key Takeaway

The ECSC was established in 1951 to pool coal and steel resources to make war impossible and foster common governance.

📖 3. The Single Market: freedoms, harmonisation, and integration challenges

🔑 Key Concepts & Definitions

• Harmonisation : The alignment of rules, standards, and regulations across member states to remove or lower internal technical and regulatory barriers, facilitating trade and mobility within the EU.
• Single Market : 1993 Common foreign & security policy.

📝 Essential Points

• Mutual recognition allows products and qualifications legally sold or recognized in one member state to be accepted in others, though not always fully effective.
• The Single Market remains incomplete and complex, with challenges in financial services and professional qualifications recognition.
• The Common Agricultural Policy, established in 1962, is an early achievement supporting agricultural integration within the Single Market.
• EU integration European Economic and Governance Issues – IBT3 – EDHEC Nice 8 Integration however remains both incomplete and complex
• Trade, investment and labour mobility facilitation Incomplete Single Market (financial services, professional qualifications recognition...)
• Harmonisation of rules and standards No automatic EU-wide recognition of academic diplomas Not always effective mutual recognition of rules and standards for products.
• Reinforced free movement of goods, services, people, capital.

💡 Key Takeaway

The Single Market remains incomplete and complex, with challenges in financial services and professional qualifications recognition.

📖 4. Composition, political groups, and legislative functions of the European Parliament

🔑 Key Concepts & Definitions

• European Parliament : A directly elected institution representing EU citizens proportionally to member states' populations, meeting mainly in Strasbourg and Brussels, and sharing legislative power with the Council of the EU.
• Qualified Majority Voting (QMV) : A voting procedure in the Council of the EU requiring at least 55% of member states, representing at least 65% of the EU population, to approve most decisions.

📝 Essential Points

• The European Parliament is directly elected by EU citizens with seats proportional to member states' populations, meeting mainly in Strasbourg and Brussels.
• The Parliament monitors the European Commission, which is accountable to it and can be forced to resign by it.
• Europe of Sovereign Nations (ESN), dominated by Germany’s AfD, 25 seats III- THE EUROPEAN PARLIAMENT Other political groups European Economic and Governance Issues – IBT3 – EDHEC Nice 39
• Legislative body of the EU together with the Council of Ministers ➔ votes EU legislation.
• European People's Party (EPP) – Christian Democrats, moderate / centre right, 188 seats 2.

💡 Key Takeaway

The European Parliament represents EU citizens politically and legislatively, progressively strengthening its democratic influence within the EU.

📖 5. Composition, appointment, and roles of the European Commission

🔑 Key Concepts & Definitions

• European Commission : The EU's executive body composed of 27 Commissioners, each representing a member state, responsible for proposing legislation, implementing decisions, managing the EU budget, and representing the EU internationally.
• European economic : Refers to the economic policies and integration efforts within the EU, including the creation of a monetary union and single currency, and the management of economic policy coordination among member states.

📝 Essential Points

• The European Commission is composed of 27 Commissioners, one from each member state, including the President and the High Representative for Foreign Affairs and Security Policy.
• The Commission President and High Representative are proposed by EU heads of state and government and must be approved by the European Parliament.
• The Commission acts as the 'Guardian of the Treaties,' overseeing implementation of EU laws by member states.
• The Commission has the exclusive right of legislative initiative to prepare and propose new EU laws within Treaty-defined areas.
• The Commission manages the EU budget and represents the EU internationally, negotiating treaties including trade agreements.

💡 Key Takeaway

The European Commission functions as the EU's executive body, initiating legislation, enforcing treaties, managing budgets, and representing the Union globally.

📖 6. Role and challenges of the High Representative for Foreign Affairs and Security Policy

🔑 Key Concepts & Definitions

• High Representative for Foreign Affairs and Security Policy : The EU official responsible for overseeing the Union's Common Foreign and Security Policy, presiding over the Foreign Affairs Council, and issuing proposals for the EU's CFSP.
• Common Foreign and Security Policy (CFSP) : The EU policy framework guiding member states' foreign and security actions, coordinated by the High Representative.
• Common Security and Defense Policy (CSDP) : A component of the EU's foreign policy aimed at crisis management and defense, reinforced by the European Council's orientations.

📝 Essential Points

• The High Representative oversees the EU's CFSP, including the CSDP.
• The High Representative presides over the Foreign Affairs Council and can issue proposals for the EU’s CFSP.
• The High Representative ensures implementation of decisions by the European Council and the Council related to foreign affairs and security.
• The role of the High Representative in representing the EU externally is ill-defined and often disputed by the Presidents of the Commission and European Council.
• EU member states retain sovereignty in foreign affairs, defense, and security, leading to frequent disagreements on common policies.

💡 Key Takeaway

The High Representative oversees the EU's CFSP, including the CSDP.

📖 7. Functions and composition of the Court of Justice of the European Union

🔑 Key Concepts & Definitions

• Court of Justice of the European Union (CJEU) : The judicial branch of the European Union responsible for ensuring the uniform interpretation and application of EU law across member states, with the authority to annul EU laws and sanction EU institutions.
• General Court : A court within the CJEU that handles cases brought by individuals and companies, functioning as a court of first instance.
• Advocate General : Independently appointed EU legal experts who provide impartial opinions to assist the Court in its rulings, with eleven Advocate Generals serving the CJEU.

📝 Essential Points

• The Court of Justice is the highest court within the CJEU, supported by the General Court which handles cases from individuals and companies.
• The CJEU is composed of one judge per member state plus eleven Advocate Generals who provide independent opinions.
• The CJEU plays a crucial role in resolving disputes involving EU law and maintaining the legal order of the Union.

💡 Key Takeaway

The Court of Justice is the highest court within the CJEU, supported by the General Court which handles cases from individuals and companies.

📖 8. Advisory and financial institutions supporting EU policy and legislation

🔑 Key Concepts & Definitions

• European Court of Auditors : An EU institution responsible for auditing the legality and regularity of EU budget revenue and expenditure, and providing opinions on financial legislation.

📝 Essential Points

• The European Court of Auditors audits the legality and regularity of EU budget revenue and expenditure and provides opinions on financial implications of legislation.
• The European Investment Bank finances EU projects, providing long-term funding, guarantees, and advice to support EU policy objectives.
• The European Central Bank conducts monetary policy for the euro area and supervises major eurozone banks.
• The European Committee of the Regions ensures local and regional elected representatives participate in drafting EU legislation.
• The European Economic and Social Committee provides advisory and consultative input to EU policy-making, representing civil society including employers and employees.

💡 Key Takeaway

Specialized advisory and financial institutions underpin the EU's policy-making, financial management, and democratic participation.

📅 Key Dates

Date	Event
1992	Maastricht Treaty
1957	Treaty of Rome
1951	Treaty of Paris

📊 Synthesis Tables

Comparison of EU Institutions

Institution	Main Role	Members/Composition
European Parliament	Legislative body, directly elected	Members proportional to population
European Commission	Executive body, proposes legislation	27 Commissioners
Court of Justice	Ensures EU law uniformity	Judges from each member state
European Central Bank	Monetary policy for eurozone	Governing Council, President

⚠️ Common Pitfalls & Confusions

1. Confusing the roles of the European Parliament and the European Commission.
2. Misunderstanding the composition and appointment process of the European Commission.
3. Overlooking the challenges faced by the High Representative in foreign policy coordination.
4. Assuming the Court of Justice can overrule national courts in all cases.
5. Misinterpreting the scope of the Single Market's completeness and harmonisation.
6. Confusing the functions of the European Court of Auditors with those of the Court of Justice.
7. Underestimating the political complexities in EU foreign policy decision-making.

✅ Exam Checklist

1. Understand the historical treaties and their significance.
2. Identify the main functions of EU institutions.
3. Explain the concept of the Single Market and its challenges.
4. Describe the legislative process within the EU.
5. Recognize the roles of the High Representative and the CSDP.
6. Distinguish between the Court of Justice and the General Court.
7. Know the purpose of advisory institutions like the European Court of Auditors.
8. Explain the EU's economic ranking and integration level.
9. Identify the main political groups within the European Parliament.
10. Understand the decision-making procedures like Qualified Majority Voting.
11. Describe the role of the European Investment Bank.
12. Recognize the importance of the Lisbon Treaty.