European Union

The European Union (EU) is a politico-economic union of member states that are located primarily in Europe. It has an area of , and an estimated population of over 510 million. The EU has developed an internal single market through a standardised system of laws that apply in all member states. EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and regional development. Within the Schengen Area, passport controls have been abolished. A monetary union was established in 1999 and came into full force in 2002, and is composed of 19 EU member states which use the euro currency.
The EU operates through a hybrid system of supranational and intergovernmental decision-making. The seven principal decision-making bodies—known as the institutions of the European Union—are the European Council, the Council of the European Union, the European Parliament, the European Commission, the Court of Justice of the European Union, the European Central Bank, and the European Court of Auditors.
The EU traces its origins from the European Coal and Steel Community (ECSC) and the European Economic Community (EEC), formed by the Inner Six countries in 1951 and 1958, respectively. The community and its successors have grown in size by the accession of new member states and in power by the addition of policy areas to its remit. The Maastricht Treaty established the European Union in 1993 and introduced European citizenship. The latest major amendment to the constitutional basis of the EU, the Treaty of Lisbon, came into force in 2009.
Covering 7.3% of the world population, the EU in 2016 generated a nominal gross domestic product (GDP) of 16.477 trillion US dollars, constituting approximately 22.2% of global nominal GDP and 16.9% when measured in terms of purchasing power parity. Additionally, 26 out of 28 EU countries have a very high Human Development Index, according to the United Nations Development Programme. In 2012, the EU was awarded the Nobel Peace Prize. Through the Common Foreign and Security Policy, the EU has developed a role in external relations and defence. The union maintains permanent diplomatic missions throughout the world and represents itself at the United Nations, the World Trade Organization, the G8, and the G-20. Because of its global influence, the European Union has been described as a current or as a potential superpower.
After World War II, European integration was seen as an antidote to the extreme nationalism which had devastated the continent. The 1948 Hague Congress was a pivotal moment in European federal history, as it led to the creation of the European Movement International and of the College of Europe, where Europe's future leaders would live and study together. 1952 saw the creation of the European Coal and Steel Community, which was declared to be "a first step in the federation of Europe." The supporters of the Community included Alcide De Gasperi, Jean Monnet, Robert Schuman, and Paul-Henri Spaak.
In 1957, Belgium, France, Italy, Luxembourg, the Netherlands and West Germany signed the Treaty of Rome, which created the European Economic Community (EEC) and established a customs union. They also signed another pact creating the European Atomic Energy Community (Euratom) for co-operation in developing nuclear energy. Both treaties came into force in 1958.
The EEC and Euratom were created separately from ECSC, although they shared the same courts and the Common Assembly. The EEC was headed by Walter Hallstein (Hallstein Commission) and Euratom was headed by Louis Armand (Armand Commission) and then Étienne Hirsch. Euratom was to integrate sectors in nuclear energy while the EEC would develop a customs union among members.
Through the 1960s, tensions began to show, with France seeking to limit supranational power. Nevertheless, in 1965 an agreement was reached and on 1 July 1967 the Merger Treaty created a single set of institutions for the three communities, which were collectively referred to as the "European Communities". Jean Rey presided over the first merged Commission (Rey Commission).
In 1973, the Communities enlarged to include Denmark (including Greenland, which later left the Community in 1985, following a dispute over fishing rights), Ireland, and the United Kingdom. Norway had negotiated to join at the same time, but Norwegian voters rejected membership in a referendum. In 1979, the first direct elections to the European Parliament were held.
Greece joined in 1981, Portugal and Spain following in 1986. In 1985, the Schengen Agreement paved the way for the creation of open borders without passport controls between most member states and some non-member states. In 1986, the European flag began to be used by the Community and the Single European Act was signed.
In 1990, after the fall of the Eastern Bloc, the former East Germany became part of the Community as part of a reunified Germany. With further enlargement planned to include the former communist states, as well as Cyprus and Malta, the Copenhagen criteria for candidate members to join the EU were agreed upon in June 1993.
The European Union was formally established when the Maastricht Treaty—whose main architects were Helmut Kohl and François Mitterrand—came into force on 1 November 1993. The treaty also gave the name European Community to the EEC, even if it was referred as such before the treaty. In 1995, Austria, Finland, and Sweden joined the EU.
In 2002, euro banknotes and coins replaced national currencies in 12 of the member states. Since then, the eurozone has increased to encompass 19 countries. The euro currency became the second largest reserve currency in the world. In 2004, the EU saw its biggest enlargement to date when Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia joined the Union.
In 2007, Romania and Bulgaria became EU members. The same year, Slovenia adopted the euro, followed in 2008 by Cyprus and Malta, by Slovakia in 2009, by Estonia in 2011, by Latvia in 2014 and by Lithuania in 2015.
On 1 December 2009, the Lisbon Treaty entered into force and reformed many aspects of the EU. In particular, it changed the legal structure of the European Union, merging the EU three pillars system into a single legal entity provisioned with a legal personality, created a permanent President of the European Council, the first of which was Herman Van Rompuy, and strengthened the position of the High Representative of the Union for Foreign Affairs and Security Policy.
In 2012, the EU received the Nobel Peace Prize for having "contributed to the advancement of peace and reconciliation, democracy, and human rights in Europe." In 2013, Croatia became the 28th EU member.
From the beginning of the 2010s, the European Union has been going through a series of tests, including a debt crisis in some of the Eurozone countries, increasing migration from the Middle East and the possible United Kingdom's withdrawal from the EU. A referendum in the UK on its membership of the European Union was held on 23 June 2016, with a majority of participants voting to leave. , the UK has not yet initiated the formal withdrawal procedure, and will not leave the EU until either two years after it notifies the European Council of its decision to withdraw, or on the coming into force of a withdrawal agreement.
The following timeline illustrates the integration that has led to the formation of the present union, in terms of structural development driven by international treaties:
The EU's member states cover an area of . The EU's highest peak is Mont Blanc in the Graian Alps, above sea level. The lowest points in the EU are Lammefjorden, Denmark and Zuidplaspolder, Netherlands, at 7 m (23 ft) below sea level.
The landscape, climate, and economy of the EU are influenced by its coastline, which is long.
Including the overseas territories of France which are located outside the continent of Europe, but which are members of the union, the EU experiences most types of climate from Arctic (North-East Europe) to tropical (French Guiana), rendering meteorological averages for the EU as a whole meaningless. The majority of the population lives in areas with a temperate maritime climate (North-Western Europe and Central Europe), a Mediterranean climate (Southern Europe), or a warm summer continental or hemiboreal climate (Northern Balkans and Central Europe).
The EU's population is highly urbanised, with some 75% of inhabitants (and growing, projected to be 90% in seven member states by 2020) living in urban areas. Cities are largely spread out across the EU, although with a large grouping in and around the Benelux. An increasing percentage of this is due to low density urban sprawl which is extending into natural areas. In some cases, this urban growth has been due to the influx of EU funds into a region.
Through successive enlargements, the European Union has grown from the six founding states—Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands—to the current . Countries accede to the union by becoming party to the founding treaties, thereby subjecting themselves to the privileges and obligations of EU membership. This entails a partial delegation of sovereignty to the institutions in return for representation within those institutions, a practice often referred to as "pooling of sovereignty".
To become a member, a country must meet the Copenhagen criteria, defined at the 1993 meeting of the European Council in Copenhagen. These require a stable democracy that respects human rights and the rule of law; a functioning market economy; and the acceptance of the obligations of membership, including EU law. Evaluation of a country's fulfilment of the criteria is the responsibility of the European Council. No member state has yet left the Union, although Greenland (an autonomous province of Denmark) withdrew in 1985. The Lisbon Treaty now contains a clause under Article 50, providing for a member to leave the EU. On 23 June 2016, the United Kingdom voted by referendum to leave the EU. However, it remains a member until it officially exits, and has not yet begun formal withdrawal procedures.
There are six countries that are recognised as candidates for membership: Albania, Iceland, Macedonia, Montenegro, Serbia, and Turkey, though Iceland suspended negotiations in 2013. Bosnia and Herzegovina and Kosovo are officially recognised as potential candidates, with Bosnia and Herzegovina having submitted a membership application.
The four countries forming the European Free Trade Association (EFTA) are not EU members, but have partly committed to the EU's economy and regulations: Iceland, Liechtenstein and Norway, which are a part of the single market through the European Economic Area, and Switzerland, which has similar ties through bilateral treaties. The relationships of the European microstates, Andorra, Monaco, San Marino, and the Vatican include the use of the euro and other areas of co-operation. The following sovereign states (of which the map only shows territories situated in and around Europe) constitute the European Union:
In 1957, when the EEC was founded, it had no environmental policy. Over the past 50 years, an increasingly dense network of legislation has been created, extending to all areas of environmental protection, including air pollution, water quality, waste management, nature conservation, and the control of chemicals, industrial hazards and biotechnology. According to the Institute for European Environmental Policy, environmental law comprises over 500 Directives, Regulations and Decisions, making environmental policy a core area of European politics.
European policy-makers originally increased the EU's capacity to act on environmental issues by defining it as a trade problem.
Trade barriers and competitive distortions in the Common Market could emerge due to the different environmental standards in each member state. In subsequent years, the environment became a formal policy area, with its own policy actors, principles and procedures. The legal basis for EU environmental policy was established with the introduction of the Single European Act in 1987.
Initially, EU environmental policy focused on Europe. More recently, the EU has demonstrated leadership in global environmental governance, e.g. the role of the EU in securing the ratification and coming into force of the Kyoto Protocol despite opposition from the United States. This international dimension is reflected in the EU's Sixth Environmental Action Programme, which recognises that its objectives can only be achieved if key international agreements are actively supported and properly implemented both at EU level and worldwide. The Lisbon Treaty further strengthened the leadership ambitions. EU law has played a significant role in improving habitat and species protection in Europe, as well as contributing to improvements in air and water quality and waste management.
Mitigating climate change is one of the top priorities of EU environmental policy. In 2007, member states agreed that, in future, 20% of the energy used across the EU must be renewable, and carbon dioxide emissions have to be lower in 2020 by at least 20% compared to 1990 levels. The EU has adopted an emissions trading system to incorporate carbon emissions into the economy. The European Green Capital is an annual award given to cities that focuses on the environment, energy efficiency and quality of life in urban areas to create smart city.
The European Union operates according to the principles of conferral (which says that it should act only within the limits of the competences conferred on it by the treaties) and of subsidiarity (which says that it should act only where an objective cannot be sufficiently achieved by the member states acting alone). Laws made by the EU institutions are passed in a variety of forms. Generally speaking, they can be classified into two groups: those which come into force without the necessity for national implementation measures (regulations) and those which specifically require national implementation measures (directives).
The classification of the EU in terms of international or constitutional law has been much debated. It began life as an international organisation and gradually developed into a confederation of states. However, since the mid-1960s it has also added several of the key attributes of a federation, such as the direct effect of the law of the general level of government upon the individual and majority voting in the decision-making process of the general level of government, without becoming a federation "per se". Scholars thus today see it as an intermediate form lying between a confederation and a federation, being an instance of neither political structure. For this reason, the organisation is termed "sui generis" (incomparable, one of a kind), although some argue that this designation is no longer valid.
The organisation has traditionally used the terms "Community" and later "Union" to describe itself. The difficulties of classification involve the difference between national law (where the subjects of the law include natural persons and corporations) and international law (where the subjects include sovereign states and international organisations). They can also be seen in the light of differing European and American constitutional traditions.
Especially in terms of the European tradition, the term federation is equated with a sovereign federal state in international law; so the EU cannot be called a federation — at least, not without qualification. It is, however, described as being based on a federal model or federal in nature; and so it may be appropriate to consider it a federal union of states, a conceptual structure lying between the confederation of states and the federal state. The German Constitutional Court refers to the EU as a "Staatenverbund", an intermediate structure between the "Staatenbund" (confederation of states) and the "Bundesstaat" (federal state), consistent with this concept.
This may be a long-lived political form. Professor Andrew Moravcsik claims that the EU is unlikely to develop further into a federal state, but instead has reached maturity as a constitutional system.
The European Union has seven institutions: the European Council, the Council of the European Union, the European Parliament, the European Commission, the Court of Justice of the European Union, the European Central Bank and the European Court of Auditors. Competence in scrutinising and amending legislation is shared between the Council of the European Union and the European Parliament, while executive tasks are performed by the European Commission and in a limited capacity by the European Council (not to be confused with the aforementioned Council of the European Union). The monetary policy of the eurozone is determined by the European Central Bank. The interpretation and the application of EU law and the treaties are ensured by the Court of Justice of the European Union. The EU budget is scrutinised by the European Court of Auditors. There are also a number of ancillary bodies which advise the EU or operate in a specific area.
The European Council gives political direction to the EU. It convenes at least four times a year and comprises the President of the European Council (currently Donald Tusk), the President of the European Commission and one representative per member state (either its head of state or head of government). The High Representative of the Union for Foreign Affairs and Security Policy (currently Federica Mogherini) also takes part in its meetings. It has been described by some as the Union's "supreme political authority". It is actively involved in the negotiation of treaty changes and defines the EU's policy agenda and strategies.
The European Council uses its leadership role to sort out disputes between member states and the institutions, and to resolve political crises and disagreements over controversial issues and policies. It acts externally as a "collective head of state" and ratifies important documents (for example, international agreements and treaties).
Tasks for the President of the European Council are ensuring the external representation of the EU, driving consensus and resolving divergences among member states, both during meetings of the European Council and over the periods between them.
The European Council should not be mistaken for the Council of Europe, an international organisation independent of the EU based in Strasbourg.
The Council of the European Union (also called the "Council" and the "Council of Ministers", its former title) forms one half of the EU's legislature. It consists of a government minister from each member state and meets in different compositions depending on the policy area being addressed. Notwithstanding its different configurations, it is considered to be one single body. In addition to its legislative functions, the Council also exercises executive functions in relations to the Common Foreign and Security Policy.
The European Parliament forms the other half of the EU's legislature.
The 751 Members of the European Parliament (MEPs) are directly elected by EU citizens every five years on the basis of proportional representation. Although MEPs are elected on a national basis, they sit according to political groups rather than their nationality. Each country has a set number of seats and is divided into sub-national constituencies where this does not affect the proportional nature of the voting system.
The European Parliament and the Council of the European Union pass legislation jointly in nearly all areas under the ordinary legislative procedure. This also applies to the EU budget. The European Commission is accountable to Parliament, requiring its approval to take office, having to report back to it and subject to motions of censure from it. The President of the European Parliament (currently Martin Schulz) carries out the role of speaker in Parliament and represents it externally. The President and Vice-Presidents are elected by MEPs every two and a half years.
The European Commission acts as the EU's executive arm and is responsible for initiating legislation and the day-to-day running of the EU. The Commission is also seen as the motor of European integration. It operates as a cabinet government, with 28 Commissioners for different areas of policy, one from each member state, though Commissioners are bound to represent the interests of the EU as a whole rather than their home state.
One of the 28 is the President of the European Commission (currently Jean-Claude Juncker) appointed by the European Council. After the President, the most prominent Commissioner is the High Representative of the Union for Foreign Affairs and Security Policy, who is "ex-officio" a Vice-President of the Commission and is also chosen by the European Council. The other 26 Commissioners are subsequently appointed by the Council of the European Union in agreement with the nominated President. The 28 Commissioners as a single body are subject to a vote of approval by the European Parliament.
The EU had an agreed budget of €120.7 billion for the year 2007 and €864.3 billion for the period 2007–2013, representing 1.10% and 1.05% of the EU-27's GNI forecast for the respective periods. By comparison, the United Kingdom's expenditure for 2004 was estimated to be €759 billion, and France was estimated to have spent €801 billion. In 1960, the budget of the then European Economic Community was 0.03% of GDP.
In the 2010 budget of €141.5 billion, the largest single expenditure item is "cohesion  competitiveness" with around 45% of the total budget. Next comes "agriculture" with approximately 31% of the total. "Rural development, environment and fisheries" takes up around 11%. "Administration" accounts for around 6%. The ""EU as a global partner" and "citizenship, freedom, security and justice"" bring up the rear with approximately 6% and 1% respectively.
The Court of Auditors is legally obliged to provide the Parliament and the Council with "a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions". The Court also gives opinions and proposals on financial legislation and anti-fraud actions. The Parliament uses this to decide whether to approve the Commission's handling of the budget.
The European Court of Auditors has signed off the European Union accounts every year since 2007 and, while making it clear that the European Commission has more work to do, has highlighted that most of the errors take place at national level. In their report on 2009 the auditors found that five areas of Union expenditure, agriculture and the cohesion fund, were materially affected by error. The European Commission estimated in 2009 that the financial effect of irregularities was €1,863 million.
EU member states retain all powers not explicitly handed to the European Union. In some areas the EU enjoys exclusive competence. These are areas in which member states have renounced any capacity to enact legislation. In other areas the EU and its member states share the competence to legislate. While both can legislate, member states can only legislate to the extent to which the EU has not. In other policy areas the EU can only co-ordinate, support and supplement member state action but cannot enact legislation with the aim of harmonising national laws.
That a particular policy area falls into a certain category of competence is not necessarily indicative of what legislative procedure is used for enacting legislation within that policy area. Different legislative procedures are used within the same category of competence, and even with the same policy area.
The distribution of competences in various policy areas between Member States and the Union is divided in the following three categories:
The EU is based on a series of treaties. These first established the European Community and the EU, and then made amendments to those founding treaties. These are power-giving treaties which set broad policy goals and establish institutions with the necessary legal powers to implement those goals. These legal powers include the ability to enact legislation which can directly affect all member states and their inhabitants. The EU has legal personality, with the right to sign agreements and international treaties.
Under the principle of supremacy, national courts are required to enforce the treaties that their member states have ratified, and thus the laws enacted under them, even if doing so requires them to ignore conflicting national law, and (within limits) even constitutional provisions.
The judicial branch of the EU—formally called the Court of Justice of the European Union—consists of three courts: the Court of Justice, the General Court, and the European Union Civil Service Tribunal. Together they interpret and apply the treaties and the law of the EU.
The Court of Justice primarily deals with cases taken by member states, the institutions, and cases referred to it by the courts of member states. The General Court mainly deals with cases taken by individuals and companies directly before the EU's courts, and the European Union Civil Service Tribunal adjudicates in disputes between the European Union and its civil service. Decisions from the General Court can be appealed to the Court of Justice but only on a point of law.
The treaties declare that the EU itself is "founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities ... in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail."
In 2009 the Lisbon Treaty gave legal effect to the Charter of Fundamental Rights of the European Union. The charter is a codified catalogue of fundamental rights against which the EU's legal acts can be judged. It consolidates many rights which were previously recognised by the Court of Justice and derived from the "constitutional traditions common to the member states." The Court of Justice has long recognised fundamental rights and has, on occasion, invalidated EU legislation based on its failure to adhere to those fundamental rights.
Although signing the European Convention on Human Rights (ECHR) is a condition for EU membership, previously, the EU itself could not accede to the Convention as it is neither a state nor had the competence to accede. The Lisbon Treaty and Protocol 14 to the ECHR have changed this: the former binds the EU to accede to the Convention while the latter formally permits it.
Although, the EU is independent from Council of Europe, they share purpose and ideas especially on rule of law, human rights and democracy. Further European Convention on Human Rights and European Social Charter, the source of law of Charter of Fundamental Rights are created by Council of Europe. The EU also promoted human rights issues in the wider world. The EU opposes the death penalty and has proposed its worldwide abolition. Abolition of the death penalty is a condition for EU membership.
The main legal acts of the EU come in three forms: regulations, directives, and decisions. Regulations become law in all member states the moment they come into force, without the requirement for any implementing measures, and automatically override conflicting domestic provisions. Directives require member states to achieve a certain result while leaving them discretion as to how to achieve the result. The details of how they are to be implemented are left to member states. When the time limit for implementing directives passes, they may, under certain conditions, have direct effect in national law against member states.
Decisions offer an alternative to the two above modes of legislation. They are legal acts which only apply to specified individuals, companies or a particular member state. They are most often used in competition law, or on rulings on State Aid, but are also frequently used for procedural or administrative matters within the institutions. Regulations, directives, and decisions are of equal legal value and apply without any formal hierarchy.
Since the creation of the EU in 1993, it has developed its competencies in the area of freedom, security and justice, initially at an intergovernmental level and later by supranationalism. To this end, agencies have been established that co-ordinate associated actions: Europol for co-operation of police forces, Eurojust for co-operation between prosecutors, and Frontex for co-operation between border control authorities. The EU also operates the Schengen Information System which provides a common database for police and immigration authorities. This co-operation had to particularly be developed with the advent of open borders through the Schengen Agreement and the associated cross border crime.
Furthermore, the Union has legislated in areas such as extradition, family law, asylum law, and criminal justice. Prohibitions against sexual and nationality discrimination have a long standing in the treaties.