The Main Objectives of the European Union - Term Paper Example

Introduction The European Union (EU) is one of the oldest economic and political partnerships comprising of 27 member countries established after the Second World War. At inception in 1958, the European Economic Community (EEC) was formed by six founding member countries that included Belgium, Germany, France, Italy, Luxembourg and Netherlands. The spirit behind formation of the trading block was that countries with high trade interdependence had higher chances of being peaceful. The goal was to establish peace, stability and prosperity among member countries for improved living standards (Europa, 2013). Since its formation, the trade block has undergone significant changes from an economic trade block to a political organization overseeing policy issues affecting economic, political and environmental issues in the region and beyond. Some of the noticeable transformations the EU has undergone include change from European Economic Community to European Union - EU in 1993. Currently, the membership has increased to 27 members drawn from the Euro zone. Most significant of all these changes is the level of development in decision making in matters pertinent to the region and global trade. Decision making has been strengthened by strict adherence to the rule of law, Constitution for Europe, treaties and establishment of strong decision making institutions. Some of the key decision making institutions within the EU are; The European Commission, The European Parliament, European Central Bank (ECB), European Council, The Council of European Union, Presidency of EU council among other bodies (Europa, 2013). Mungersdorff (2009) noted that the co-decision procedure is often a rule other than an exception where the European Commission, the European Parliament, The Council of EU and ECB are key decision making institutions of the EU. This paper primarily focus the main decision making organs of the EU and the politics behind that tend to strengthen the trade block in its quest to achieve its vision and mission. The analysis covers the country and regional levels of influence in the decision making process. Subsequent sections of this paper discuss the decision makers in economic, political, social, environmental and arbitration issues affecting the trade block. Decision making in EU is spread across several bodies mandated to oversee specialized functions and operations in harmionising and facilitating operations in the world’s most effective trading block. The paper operates each of the EU bodies mandated to oversee trade, legal, political, justice among other aspects in the trading block and how these bodies work alongside others to support EU in all its functions. Objectives of the European Union The main objectives of the European Union are “to promote peace, the Union’s values and well-being of its peoples (Europa, 2013).” They are explained in detailed in Article 1 – 3 of the Constitutional Treaty, which outlines both the internal and external objectives of the Union. Decision Making Institutions in EU The Constitutional Treaty of the EU provides a multi-level decision making process where different institutions are involved. Actors in these organizations are drawn from the region as well as from persons from member countries. The decision making structures exhibit a high level of interdependence where intra and cross-institutional alliances, as opposed to long-term coalitions is pronounced (Cini and Borragan, 2010; Mongersdorff, 2009; Thomson, Boerefijn and Stokman, 2004). Key decision making EU bodies include; The European Commission, The European Parliament, The European Council, European Central Bank (ECB), European Investment Bank, Council of European Union, EU Court of Justice and the EU presidency. The institutions work closely with other bodies and organizations of the EU including the European Ombudsman, European Court of Auditors, European External Action Service, European Economic and Social Committee, Committee of the Regions, European Personnel Selection Office (ESPO) and European Data Protection Supervisor (Europa, 2013. The relative powers in terms of decision between the decision making institutions vary and a subject of scholarly discussion (Thomson and Hosli, 2006). Decisions carried out by the stated institutions in the EU can be grouped into political, social, economic, environmental, and legal and information management. The decision making functions and mandate of each of these institutions are discussed at length hereunder. The European Commission The European Commission is the apex decision making organ of the EU and represents the interests of the entire trading block. The Commission comprises of comprises of 28 Commissioners drawn from the region and holds weekly meetings. Decision making originates from here and it proposes new legislation to the European Parliament and the Council of the European Union. It also plays and oversight role by ensuring that the EU law is applied appropriately by all member countries. The commission in its process of making proposals ensures that they are in harmony with EU treaties. Proposals can be initiated either by the commission or at the request of a stakeholder or member country. Since 2012, EU citizens through the European Citizens’ Initiative can send their requests to the Commission with various proposals of laws (Europa, 2013). For the commission to decide whether to legislate or not it is guided by the principles of subsidiarity and proportionality which allow it to legislate if the action is more effective at EU level than at national, regional or local level. Decision making and proposing is a consultative process, and the Commission seeks the inputs of various stakeholders including national parliaments and the government. As a rule, the Commission assesses economic, social and environmental impact of the proposed legislation are published along with the proposal itself (Europa, 2013). The European Parliament This is an elected organization of the EU mandated by over 500 million EU citizens. Voters elect 766 members after every 5 years from all the 28 EU member states. In terms of composition, EP has a president (rotating every 6 months across member countries), Members of EP (MEPs), political groups, committees and the secretariat. EP alongside the Council is mandated to debate and adopt proposals on legislation. In addition, EP is mandated to supervise the affairs of the Commission and adopt the EU’s budget. To ensure harmony and quick adoption of the final legislation, EP works jointly with national parliaments of EU countries. This ensures that diversity of national perspectives and interests are captured in proposed legislation. Considering the rich diversity of the EU region all the members are allowed to use official languages recognized by EU and all documents are prepared in these languages. Elected members of the EP (MEP) organize themselves into various political groups. Proposal of legislation is first left specialized committees, which are mandated to prepare various reports for tabling and voting in the planetary. The committees do thorough and detailed analysis in their report and legislation proposal. Council of the European Union (formerly EU Council) The Council of European Union comprises of national ministers from each EU country, who meet to adopt laws and coordinate policies on a regular basis. The Council does not have fixed membership and ministers attend based on the nature of issues being debated. For example, if foreign affairs are being discussed, then foreign affairs ministers from member countries attend the council meetings. The Council has six main functions as discussed hereunder. Firstly, the Council alongside the EP has to pass all the EU laws. Two coordinates economic policies where economics and finance ministers in each country are tasked to accomplish this function. This function is geared towards the creation of jobs and ensures improvements in education, healthcare and welfare systems. Three, the Council is mandated to sign any international agreement involving the EU on different transactions. Four, the council vets and passes the EU budget together with the EP. Five, the council gives directions on foreign and defence policies. Six, the council ensures that justice is always maintained; justice ministers ensure harmonization of court judgments across all the EU members. European Central Bank (ECB) and European Investment Bank The European Central Bank is an institution mandated to develop and coordinate economic and monetary policy within the EU. Precisely it manages the Euro and ensures price stability in the EU by studying macro variables and giving direction. It does so by managing the interest rates, exchange rates and stimulating economic growth through economic policies. It is also the custodian of the various macro-economic statistics including base lending rate, inflation, exchange rate, GDP growth, unemployment among others. According to the various articles establishing the ECB, the bank was established to play the following two main purposes. One, keeping price stable especially in countries that use the Euro and two, keeping the financial system stable by making sure financial markets and institutions are properly supervised (Europa, 2013; BBC New, 2012). In its day-to-day operations the bank works closely with all the central banks in the 28 member countries Key roles of ECB as spelt out in Maastricht Treaty include; setting key interest rates for the Eurozone and controlling money supply; managing the Eurozone’s foreign currency reserves; ensuring financial markets and institutions are adequately supervised by national authorities and that payment systems function smoothly (Europa, 2013). Others include authorizing central banks in the Eurozone to issue euro banknotes, monitoring price trends and assessing the risk the Eurozone faces in the price stability (Europa, 2013). However, most experts argue that ECB is not well mandated in the field of micro prudential supervision of an individual institution. Micro-prudential supervision is blamed for exacerbated the euro debt crisis as some financial institutions in Northern Ireland and Cyprus experienced severe distress due to moral hazard and adverse selection. Despite this, ECB is making great strides towards becoming a fully-fledged central bank (Haan and Berger, 2010; UK News, 2013). European Investment Bank (EIB) is the European Union’s Bank owned by member states and works closely with EU financial institutions to implement EU policy. EIB is the largest borrower and lender by volume operating across different countries; the bank provides expertise to facilitate sound investment projects (Europa, 2013). Its roles are threefold and include lending, blending and advising. It helps to unlock financing challenges as well as project management expertise within the EU where 90% of its activities are concentrated. European Council The European Council provides a platform for European Leaders to give political direction and priorities affecting the EU. Comprises of EU leaders and meets four times a year to discuss EU’s political priorities. It was established as an institution following the Lisbon Treaty in 2009. It lays the broader political direction but does not exercise any legislative function (Europa, 2013). The Council has to meet quarterly and involves a meeting of all heads of states for member countries with the president of the commission. Most of the decisions are decided by consensus and seldom through qualified majority. Best, Christiansen and Settembrini (2008) argue that the enlargement of the EU has affected the European Council where it has developed from a ‘debating club’ to a provider of strategic guidelines for the Eurozone. This view is portrayed by new strategic activities and frontiers that have been initiated by the European Council. Court of Justice of the EU, European Ombudsman and European Court of Auditors, These are key institutions in the arbitration process and provide interpretation to various Treaties and legislation passed by the Council and EP. In particular, The Court of Justice has exclusive responsibility to declare EU measures invalid by providing authoritative interpretations of EU law across the Union. However, this does not prejudice the national courts as they have a monopoly over the adjudication of disputes (Chalmers, Davies and Monti, 2010). The Court is made up of at least one judge per member state where the judges are supported by the Advocates-General. European Economic and Social Committee The European Economic and Social Committee (EESC) plays a consultancy role in EU and is responsible documenting policy areas, events and press related information, which is then made available to the public. In most cases, EESC researches and provides suggestions on social, economic issues affecting the EU. Other decision makers Other decision makers at the EU include the Committee of the Regions, European Personnel Selection Office (ESPO) and European Data Protection Supervisor Monetary Policy Decisions Decision Making Process in the EU EU policy decision making process is a rigorous process that involves a number of its institutions and at times the citizens from member countries. Lelieveldt and Princen (2009) identify three types of decisions in the EU that include legal, directives and regulations. Policies and legal acts are adopted within the rules, and procedures spelt out in the various Treaties governing the Union. However, the European Commission is at the apex of the decision making structure and proposes legal acts which are then passed to the Council of EU and European Parliament (EP) for further discussion and adoption. Decision making involves three main steps; these are consulting, assenting and co-decision making. The decision making mandate and powers of the EU agents are drawn from the Treaty of Lisbon, which “aimed at strengthening the capacity of the EU to decide and to act, whilst guaranteeing the legitimacy of decisions adopted (Europa, 2013). In particular, this treaty has seen the role of European Parliament (EP) in policy making rise significantly as opposed to when the Commission, which used to be the dominant force. Its importance has arisen following the co-legislation procedure that requires EP and the Council to debate and agree on main policy issues. Normally, decision making is achieved through two main procedures in EU. These are the ordinary and special legislative procedures. Ordinarily legislative procedure that was embraced repealed the co-decision procedure. Post policy makers and political analysts have argued that the ordinarily legislative procedure is the most legitimate procedure from a democratic point of view. “It involves the European parliament as a co-legislator at the Council’s side (Europa, 2013)’. This legislative procedure is common and is considered common law procedure under the Treaty of Lisbon in policymaking. This legislative procedure places EP and the Council at par, and they receive legislative acts from the Commission (comprising of governments and staff). EP and the Council often receive policy and legislation documents from the Commission and adopt the acts at either first reading, or at second reading. In case the two institutions do not reach an agreement at second reading, a Conciliation Committee is convened to try to reach a consensus by thrashing out contentious issues. To pass legislation, voting under this procedure is by qualified majority as defined under the Lisbon Treaty (Lelieveldt and Princen, 2009). Special legislative procedure replaced the former consultative, cooperation and assent procedures. “The objective is to simplify the EU’s decision making process by making it clearer and more effective (Europa, 2013). The procedure involves some exceptions from the provisions of the ordinary legislative procedure. Often this procedure is used where an impasse within the EP and Council arises, and determination has to be made. As a result, the Council of the EU in this case is mandated to be the sole legislator with EP’s role reduced or limited to consultation or approval as the case may be. Legal experts fault the rules governing special legislative procedure, as they are not explicit as those of ordinary legislative procedure. The Articles of Treaty on European Union and Treaty on the Functioning of the EU has to decide these legislative procedures on an ad hoc basis (Europa, 2013). Conclusion It is evident from the discussion that there are numerous decision making organs/ institutions at the EU. The decision making of each of these institutions and bodies is not done in isolation but rather in a multi-faceted manner and brings most of them together. In addition, the EU is the most advanced trading block in economic and political integration. As a result, it lays a sound framework upon which other regional trading blocs can emulate as they enhance their integration (Kaeding and Selck, 2005). As mentioned the weak supervisory role to manage micro-prudential supervision of the financial system in the zone has some drawbacks in harmonizing economic and monetary policies. Therefore, the idea to give the ECB more powers to supervise and provide more direction on fiscal policy, which has been entirely left as a prerogative of the national government, is long overdue. This will help to avert possible recurrence of the debt crisis by providing stopgap measures well in advance. List of References Best, E. Christiansen, T. and Settembrini, P. (2008) The Institutions of the Enlarged European Union: Continuity and Change. Cheltenham: Edward Elgar Publishing Limited Cini, M. and Borragan, N. P. (2010) European Union Politics. London: Oxford University Press. European Union (2013) How the EU Works. European Union [Online] Available from www.europa.eu/index_en.htm [Accessed on 12/11/2013]. Haan, J. and Berger, H. (eds) (2010) The European Bank at Ten. Berlin: Springer-Verlag Publishers Kaeding, M. and Selck, T.J. (2005) Mapping out political Europe: Coalition patterns in EU decision making. International Political Science Review, 26 (3), pp. 271 – 290. Lelievedlt, H. and Princen, S. (2011) The Politics of the European Union. New York: Cambridge University Press. Mungersdorff, M. (2009) Evaluating EU decision making processes. Working Paper, Stockholm Environment Institute. Available from www.sei-international.org/mediamanager/documents/publications [Accessed on 12/11/2013]. Thomson, R. Boerefijn, J. and Stokman, F. 2004. Actor alignment in European Union decision making. European Journal of Political Research. 43, pp. 237-261. Thomson, R. and Hosli, M. 2006. Who has power in the EU? The commission, council and parliament in legislative decision making. Journal of Common Market Studies 44 (2). Pp. 391 -417. UK News. 2013. ECB sets out bank health test plans before new supervisory role. Yahoo News [Online] [Available at www.uk.news.yahoo.com/ecb-sets-bank-health-test-plans-supervisory-role-000625081 [Accessed on 12/11/2013]. Read More