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<text id=93CT1934>
<title>
The European Economic Community:Institutions & Budget
</title>
<history>
Compact ALMANAC--World Organizations
</history>
<article>
<source>CIA World Factbook</source>
<hdr>
The European Economic Community
Institutions and Budget
</hdr>
<body>
<p>INSTITUTIONS
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.)
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>BUDGET
</p>
<p>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.
</p>
<p>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.
</p>
<p>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.
</p>
<p>Source: U.S. Department of State, Bureau of Public Affairs,
April 1993.
</p>
</body>
</article>
</text>