The European Union: Institutions, Policies, and Pillars

Posted on Aug 25, 2024 in Economy

The Committee of the Regions

This committee consists of 344 members who must be elected municipal or regional representatives. It represents the municipalities and regions of the EU. The Committee of the Regions is consulted on policy initiatives that address environmental, regional, and education matters. It plays a crucial role in involving local governments in EU affairs.

European Ombudsman

Individuals, institutions, and companies residing in the EU who believe they have been victims of maladministration by any EU body can contact the European Ombudsman. The European Parliament oversees the Ombudsman’s functions. The current European Ombudsman is Mr. Nikiforos Diamandouros.

Europol

Europol is the European police office, aiming to strengthen cooperation between the security forces of EU member countries.

Eurojust

Eurojust is a unit composed of prominent judges, responsible for judicial cooperation in criminal matters. It coordinates with national authorities in pursuing offenses related to the EU budget.

The EU Budget

  1. The European Parliament and Council share budgetary authority.
  2. The budget includes estimates of income and authorization of expenditures.
  3. The overall EU budget is financed with equity. These own resources are:

Sources of EU Budget Revenue

  1. Traditional own resources: These include agricultural levies and customs duties. Agricultural levies ensure imported agricultural products are not priced lower than those in the EU, equalizing prices from foreign countries with member countries. Customs duties are levied on specific imports from third countries.
  2. VAT resource: A uniform VAT rate is applied to all goods and services within the EU, with adjustments and modifications made to the EU budget annually. The VAT fraction generates the highest revenue for financing the budget.
  3. GNP-based resource: This resource considers the gross national product of each member state. A percentage is applied to the sum of all member states’ GNPs.

The Three Pillars of the European Union

The actions resulting from signing the Treaty of the Union are referred to as the pillars of the EU.

  1. First Pillar: Focuses on the most common policies.
  2. Second Pillar: Dedicated to the common foreign and security policy.
  3. Third Pillar: Dedicated to Justice and Home Affairs (JHA).

First Pillar Policies

The policies under the first pillar of the European Union are:

  1. Space without internal borders
  2. Economic and Monetary Union (EMU)
  3. Cohesion policies
  4. Social policy
  5. Protection of consumers and users
  6. Environment
  7. Community programs
  8. Common Agricultural Policy (CAP)
  9. Industrial policy
  10. Citizenship
  11. Europol

Economic and Monetary Union (EMU)

The Economic and Monetary Union led to the creation of a single market and the euro replacing national currencies. The institutions of the EMU are:

  1. Council of Finance Ministers (ECOFIN): Defines and coordinates the economic policies of the Union.
  2. European Central Bank (ECB): Manages the euro and decides on European monetary policy.
  3. European System of Central Banks (ESCB): Comprises the central banks of member states and the European Central Bank. It is responsible for authorizing the issuance of banknotes and coins.

Cohesion Policy

  1. The Maastricht Treaty established the Cohesion Fund in 1993 to support the development of the poorest EU countries and promote their infrastructure.
  2. The Cohesion Fund focuses on balancing the member states rather than pursuing regional or social objectives.

Social Policy

Within a market of free movement of employees, the EU’s social policy aims for full employment and improved living and working conditions for its workers.

Consumer Protection Policy

  1. Recognizes the right to protection of health and safety, economic interests, protection from damage, education, consumer information, and representation.
  2. Lists of permitted and prohibited substances have been drawn up, dismissing dangerous substances and banning the manufacture and marketing of products that could cause confusion or pose health hazards.

EU Environmental Policies

  1. These policies aim to preserve and protect the environment, contribute to human health, and ensure the prudent and rational use of human resources.

Community Programs

  1. The Commission directly grants these programs to public or private bodies and individuals to implement common policies in areas such as R&D, TEN, education, training, youth, culture, environment, consumer protection, health, and social services.
  2. This aid falls under full community regulation, meaning EU member countries’ public administrations do not manage them.
  3. Key programs include the Seventh Framework Program for RTD and programs for education, youth, and professional training.

VII Framework Program

  1. This community initiative promotes and supports R&D cooperation between firms and research institutions in EU member countries and partner countries. The program will be in effect from 2007 to 2013.