The structure and functions of the European Union.
The European Union (EU) is a group of 27 countries that operates as a cohesive economic and political block. Nineteen of the countries use
the euro as their official currency. The EU grew out of a desire to form a single European political entity to end the centuries of warfare among European countries that culminated with World War II and decimated much of the continent. The European. Single Market was established by 12 countries in 1993 to ensure the so-called four freedoms: the movement of goods, services, people and money. The EU’s gross domestic product (GDP) totaled $15.6 trillion (nominal) in 2009, which was $5.8 trillion less than the United States’ $21.4 trillion GDP, according to figures available from the World Bank.
The organisational structure of EU consists of:
(i) The Executive Commission,
(ii) The council of Ministers,
(iii) The European Parliament,
(iv) The Court of Justice,
(v) The Economic and Social Committee and,
(vi) The Monetary Committee.
(i) The Executive Commission: The Executive Commission of EU is the key institution. It functions autonomously of the national governments of the member countries. The functions of this commission are related to initiation, evolution and execution of the economic policies of the community. The commission ensures the proper compliance of agreed policies by the member countries. The commission’s directives are binding upon all the members. It has the authority to overrule any such policies of the national governments as are not in conformity to the desired objectives of the EU.
The commission is constituted by 14 commissioners, appointed by the member countries. The commissioners are bound on oath to work independently of the dictates of their respective national governments. The commission has a significant achievement in the field of anti-trust legislation. It brought about successful suits against multi-national corporations charged for adopting monopolistic practices within the geographical confines of the European Union.
(ii) The Council of Ministers: An important decision-making inter governmental body is the Council of Ministers. It is constituted by the foreign ministers of the member countries of the EU. This body is responsible for taking major decisions related to political issues which impinge upon the economic and commercial policies.
The Council of Ministers takes decisions also upon important technical matters and lays down the guidelines for political and economic policies. All issues are decided by the Council of Ministers through the majority decision. However, attempts are made to evolve, as far as possible, the consensus among the members.
(iii) The European Parliament: It is a consultative body constituted by 142 members representing the national parliaments of the member countries. Generally, the European Parliament holds eight sessions a year. The members of the European Union (EU) Parliament are now chosen through direct election.
(iv) The Court of Justice: Any dispute arising out of the different provisions of the Treaty of Rome is settled by the Court of Justice that is based in Luxembourg. This Court has the power to over-rule the decisions takenby the national courts on the matters related to EU policies and actions.
(v) The Economic and Social Committee: The Economic and Social Committee is constituted by the representatives of workers, employers and professional organisations of the member countries of the EU. This is essentially a consultative body.
(vi) The Monetary Committee: This committee is constituted by experts and central bank officials of the member countries of the EU. It performs the functions of tendering advice to the Executive Commission and the Council of Ministers of international monetary issues.
The long standing European goal of creating European economic and monetary union could be reached by the end of 1993 when all the member countries ratified the Maastricht Treaty drawn up in 1991. The European Union became fully operational ill certain parts of the agreement. For instance, Britain declined to participate in the integration of social policy.
Functions
EU’s law and regulation is meant to create a cohesive economic entity of its countries, so that goods can flow freely across the borders of its member nations, without tariffs, with the ease of one currency and the creation of one enlarged labour pool, which creates a more efficient distribution and use of labour.
There is a pooling of financial resources, so that member nations can be “bailed out” or lent money for investment.
Union’s expectations in areas such as human rights and the environment have political implications for member countries. Union can exact a heavy political cost such as severe cutbacks and an austerity budget on its members as a condition of giving aid.
This is a great experiment, really, in cooperation amongst nations who wish to be economically unified, ceding as little political and national power as possible.
Trade
● Free trade among its members was only of the EU’s founding principles. This is possible thanks to the single market. Beyond its borders, the EU is also committed to liberalising world trade.
The European Union is the largest trade block in the world. It is the world’s biggest exporter of manufactured goods and services, and the biggest import market for over 100 countries.
The EU committed to helping victims of man-made and natural disasters worldwide and supports over 120 million people each year.
EU and its constituent countries is the world’s leading donor of humanitarian aid.
Diplomacy and security
● The EU plays an important role in diplomacy and works to foster stability, security and prosperity, democracy, fundamental freedoms and the rule of law at international level.
