INSTITUTIONS

Since July 1967, the three communities have functioned with common institutions. The main EC institutions are: the Council of Ministers, which has final decision-making authority; the European Commission, which formulates policies and legislation and implements decisions of the Council; the European Parliament, which advises the EC on policy development and proposals emanating from the Commission; and the European Court of Justice, which interprets the EC treaties and legislation. Other EC institutions are the Court of Auditors, which oversees financial management of the Community, and the Economic and Social Committee, an advisory body. Member states have agreed to relinquish a degree of national sovereignty to EC institutions and to cooperate in the joint administration of these powers.

The European Commission The Commission, headquartered in Brussels, is made up of 17 commissioners appointed by common agreement of the 12 governments. Each country is represented. The United Kingdom, France, Germany, and Italy each supply two commissioners. According to the treaties, members of the Commission act independently of their governments and of the Council and represent the interests of the Community as a whole. Each member has responsibility for one or more policy areas.

The Commission's major responsibility is to oversee the implementation of the EC treaties and applications of decisions by Community institutions. The Commission has investigative authority and can take legal action against persons, companies, or member states that violate Community rules. The Commission initiates EC policy by making proposals to the Council of Ministers and steers its proposals through the Council. These may include measures beyond the scope of trade and commerce, such as education, public health, consumer protection, the environment, research and technology, and aid to developing countries. The collection and disbursement of EC funds is a third important Commission responsibility.

The 1987 Single European Act gave the Commission authority to implement Council decisions; for example, the commissioners may negotiate trade agreements with non-member states on behalf of the Community. The Commission's independence and its "right of initiation" of policy account for much of its supranational authority. To balance that independence, the Commission is subject to censure by the Parliament, which can force the entire Commission to resign as a body by a two-thirds majority vote. (This action never has been taken.)

The President of the Commission is appointed to a renewable 2-year term by the Council of Ministers. The Com-mission's administrative staff of 16,700 is divided into 23 Directorates-General. In 1995, the terms of the commissioners will be expanded to 5 years to correspond to the terms of members of the European Parliament.

Council of Ministers The Council of Ministers is the primary decision-making body of the Community. It is composed of ministers representing national governments. Each member state serves as Council President for 6 months in rotation. The presidency country presides at all meetings of the member states and serves as spokesman in dealing with countries on inter-governmental matters, including efforts to coordinate the foreign policies of the member states. A member state's foreign minister is regarded as its principal representative in the Council. Foreign ministers deal with the most important and wide-reaching topics, while more specific decisions are made by the ministers of agriculture, finance, industry, energy, social affairs, and others, deepening on the issue to be discussed.

EC members have the following votes in the Council: Germany (10), France (10), Italy (10), United Kingdom (10), Spain (8), Belgium (5), Greece (5), Netherlands (5), Portugal (5), Denmark (3), Ireland (3), and Luxembourg (2). The 1987 Single European Act created a less restrictive decision-making process by allowing most voting in the Council by qualified majority (54 out of a total of 76 votes), rather than unanimity especially in areas relating to the internal market. Exceptions include certain health and safety and taxation proposals.

The various ministerial groups meet monthly. A Committee of Permanent Representatives, consisting of member country ambassadors to the Community in Brussels, and the Council Secretariat assist the Council.

European Council The Single European Act formally established the European Council, which had met on a regular basis since 1975. The European Council includes the Heads of State and Government and the President of the Commission. It meets at the end of each member's council presidency to discuss general problems regarding the Community, the progress of political cooperation, and foreign policy issues.

European Parliament The European Parliament is the only EC institution that directly represents European citizens. It serves as a public forum to debate issues of importance to the Community. The Commission must consult the Parliament before proposals are forwarded to the Council of Ministers for decision. The Parliament has significant power over budgetary matters and can amend or reject the budget as well as approve its adoption. Since 1987, it also has had the right to amend or reject certain legislation approved by the Council, which can overrule the Parliament only by a unanimous vote. Although it cannot veto individual ministers, the Parliament has the power to pass a vote of no-confidence in the Commission by a "motion of censure," which would require the entire Commission to resign. The Parliament also may approve or disapprove applications of non-member countries to join the Community as well as new association agreements.

The European Parliament has been elected by universal suffrage since 1979. Previously, deputies had been nominated by national legislatures. The 518 deputies of the Parliament are elected to 5- year terms and are grouped by political affiliation, rather than by nationality. They include Socialists, Christian Democrats, Liberals, Conservatives, Communists, and Greens.

Many of the Parliament's specialized committees have emphasized development of truly European policies in areas such as the internal market, energy, industrial restructuring, and regional development funding. Direct elections ensure full public representation in the Community, and important tasks for the deputies include promoting the Community's work within their constituencies and increasing public support for an integrated Europe.

The Parliament meets monthly in week-long plenary sessions in Strasbourg. The Secretariat staff of 3,500 is located in Luxembourg; most committee and political group meetings are held in Brussels.

Court of Justice The Court is the final authority for the interpretation of EC laws as embodied in its treaties, regulations, and directives. Complaints about member-state treaty violations may be lodged by other member states or by the Commission. Member governments, EC institutions, and individuals have the right to contest Commission and Council actions in the Court.

The Court resolves conflicts between Community and national laws. EC judgments in the area of EC law overrule those of national courts. The Court's decisions are binding on all parties and are not subject to appeal. Court decisions generally have tended to strengthen EC institutions and promote integrated EC policies.

Member governments appoint 13 justices, one from each member state plus a president of the Court for renewable 6-year terms. The judges are assisted by six advocates-general. Court decisions are reached by a simple majority. The Court meets in Luxembourg.

The Single European Act introduced a new Court of First Instance, which essentially serves as a lower court. It has jurisdiction in matters covered by the treaty establishing the European Coal and Steel Community (ECSC), in the field of competition law, and in actions brought by EC officials.

Economic and Social Committee This advisory body of 189 members represents various economic and social sectors, including labor, employers, and other interest groups such as consumers, agriculture, and professional associations. The Committee enables a broad spectrum of groups to be represented in EC decision-making. Through a mandatory consultation process, the Committee submits its opinions on EC policies and legislative proposals to both the Council of Ministers and the Commission.

BUDGET

Since 1975, the Community has been fully funded from its own resources. These are derived from customs duties levied under the Common Customs Tariff, levies on agricultural imports from non- member states, and a 1.4% value-added tax collected on the goods and services consumed in member countries. Faced with the additional costs associated with the implementation of the 1992 single market program, in 1988, the Council approved the introduction of a fourth source of revenue, based on a percentage of member countries' gross domestic product.

Budget expenditures are principally for agricultural support, regional and social measures, development assistance to Third World countries and to Central and Eastern Europe, and administrative costs. The Commission prepares the preliminary draft of each year's EC budget. The Council discusses the preliminary report and then submits a draft budget to the Parliament, which can amend or reject the budget and is responsible for its final adoption.

The approved EC budget for 1992 is $86 billion. The largest budget item, accounting for about two-thirds of the total, is agricultural expenditures under the Common Agricultural Policy (CAP). Other major budget items are energy and industrial programs, research, and development assistance to poorer regions of the Community, Central and Eastern Europe, and Third World nations.

Source: U.S. Department of State, Bureau of Public Affairs, April 1993.