EU Institutions and the Ordinary legislative procedure dr. Páczay György Gödöllő, 22 June 2011.

Institutions and functions European Union Institutions and functions

EU Institutions and Bodies EU Insitutions European Council (summit) European Parliament Council of Ministers (Council of the EU) European Commission Court of Justice Court of Auditors European Central Bank EU Bodies Financial Bodies (EIB, EIF) Advisory Bodies (EESC, CoR) Ombudsman and Data Protection Supervisor Agencies 3

EU in constant evolution EU institutions EU in constant evolution exercise some sovereignty the treaties that have created it EU institutions in constant evolution balance of power among institutions new institutions EU institutions dense and complex a triangle of institutions plus the court

Triangle of institutions - European Parliament elected directly by the people of the Member States - Council of the European Union representing the governments of the Member States - European Commission driving force, agenda setter, and executive body („EU Government” – exclusive right to take legislative proposal)

- Commission proposes EU legislation European Commission - Commission proposes EU legislation - Commission oversees and monitors implementation of EU policy transposition of EU law into national laws - Commission is the guardian of the Treaties (TEU, TFEU) to agitate for the future and development of the European integration

European Commission’s main roles TO PROMOTE THE COMMON INTEREST - to propose legislation to Parliament and the Council, - to manage and implement EU policies and the budget, to enforce EU law (jointly with the Court of Justice), - to represent the European Union on the international stage, for example by negotiating agreements between the EU and other countries

Legislative proposals - The Commission alone is responsible for drawing up proposals for new EU legislation, which it presents to Parliament and the Council Propose action at EU level only if it considers that a problem cannot be solved more efficiently by national, regional or local action – principle of „Subsidiarity” Consultation with experts, Green (starting debate to solve a specific problem) or White Papers (plan of codification of a larger field), hearings, reports, impact assessments (possible effects of future actions), legislative drafts - Two advisory bodies – the European Economic and Social Committee and the Committee of the Regions

Enforcing European law - „guardian of the Treaties” - Commission, together with the Court of Justice, is responsible for making sure EU law is properly applied in all the MS - „infringement procedure” if Commission finds that a MS is not applying an EU law – Official letter (Notice), Justified opinion, Commission will refer the matter to the Court of Justice to decide (Decision of the Court of Justice of the EU, possible financial sanctions)

Representing the EU on the international stage voice of the EU in international forums - Commission speaks and negotiates on behalf of the EU in areas where the EU have exclusive and shared competences (mandate adopted by QMV in the Council) or MS entrust it (by a unanimity voting) - Appearence of the Commission and the Council (represented by actual Presidency) in international forums – huge institutional debate on this topic due to contradictious provisions of the Treaties – practice: common representation approved by ad hoc agreements

European Commissioners (27) Appointed by member states for 5-year term, President nominated by the European Council, the Commission President-designate is then approved by the European Parliament, Commission President-designate chooses the other members of the Commission, President and all members of the new commission approved by the European Parliament, President assigns each commissioner a portfolio of precise tasks.

European Commissioners (27) A college of equals broad participation in collective debate Commission votes only when there’s no consensus (simple majority) Are all required to swear “to be completely independent in the performance of their duties “neither seek nor take instructions from any government or from any other body

Roles of the Council of the EU VOICE OF THE MEMBER STATES - to pass EU laws – jointly with the European Parliament in many policy areas, - to coordinate the broad economic and social policies of the MS, to conclude international agreements between the EU and other countries or international organisations, to approve the EU’s budget, jointly with the European Parliament, - to define and implement the EU’s common foreign and security policy (CFSP) based on guidelines set by the European Council, - to coordinate cooperation between the national administration, courts and police forces in civil and criminal matters.

Legislation The bulk of the Council’s work is in passing legislation in areas where the EU has pooled its sovereignty Most common legislative procedure = ordinary legislative procedure (co-decision) – later on Other major legislative procedures: a) consultation (e.g. taxation, competition): proposal from the Commission – consultation with the EP, consultative bodies – EP’s decision: approval / rejection / amendments – Commission – Council adopts the final decision b) assent (e.g. international agreements): Council has to obtain the European Parliament’s assent before certain very important decisions are taken - procedure is the same as in the case of consultation, except that Parliament cannot amend a proposal: it must either accept or reject it. Acceptance (‘assent’) requires an absolute majority of the votes cast.

Concluding international agreements The Council ‘concludes’ (i.e. officially signs) a number of agreements between the European Union and non-EU countries, as well as with international organisations. The EU’s annual budget and the multiannual financial framework is decided jointly by the Council and the European Parliament. Approving the EU budget

Different configurations of the Council - General Affairs, - External Relations, - Economic and Financial Affairs (Ecofin), - Justice and Home Affairs, - Employment, Social Policy, Health and Consumer Affairs – CAP: food quality, food labelling - Competitiveness, - Transport, Telecommunications and Energy, - Agriculture and Fisheries – CAP: CMOs (e.g. sugar, cereals, fruits&vegetables etc.), animal and plant health, food safety, CFP - Environment – environmental issues + GMOs, so called „greening” approach - Education, Youth and Culture multiplicity of different councils 90 council meetings per year on average

Voting in the Council of the EU - Complex decision rules: 1) unanimity (in some areas e.g. sanctions against MS breaching the main values of the EU, setting up common defense, admission of new MS etc.) 2) simple majority voting 3) qualified majority voting (345 total of votes) – until 2014 largest (DE, FR, IT, UK) – 29 votes, smallest (MT) – 3 votes A qualified majority is reached: 1) if a majority of MS (in some cases a two-thirds majority) approve and, 2) if a minimum of 255 votes is cast in favour — which is 73.9% of the total. In addition, a MS may ask for confirmation that the votes in favour represent at least 62% of the total population of the Union. If this is found not to be the case, the decision will not be adopted.

Structure of the Council of the EU - 3 level structure of the Council 1st: ministerial meetings 2nd: Committee of Permanent Representatives (COREPER) - MS ambassadors to the EU, their deputies and top staff – CAP: Special Committee on Agriculture (SCA) 3rd: Council working parties – legislation mainly at expert level - Council Secretariat (administrators, members of the Council Legal Service, legal linguists, etc.) Prepares and ensures the smooth functioning of the Council’s work at all levels – main partner of the Presidency - Council Presidency: The presidency of the Council rotates every six months. Each MS in turn takes charge of the Council agenda and chairs all the meetings for a six-month period, promoting legislative and political decisions and brokering compromises between the MS

Presidency of the Council Presidency of the Council of the EU rotates among MS every 6 months oversees Council-Commission relationships (e.g. briefing before each Council meeting) coordinates Council-Parliament interactions (e.g. trilogues, reports to the EP committees) presides over and prepares the European Council summits speaks for the EU externally on foreign policy matters (excepting trade)

The European Council Institutionalization of regular meetings of EU heads of state and government

Role of the European Council - the EU’s “board of trustees” to supplements the strategic capacities of the triangle of institutions to agree overall EU policy and to review progress. It is the highest level policymaking body in the European Union, which is why its meetings are often called „summits” to provide the Union with the necessary impetus for its development and shall define the general political directions and priorities thereof not exercise legislative functions decisions of the European Council shall be taken by unanimity - usually 2 summits during each 6-month presidency of the Council of Ministers presidents or prime ministers plus one other minister (usually the foreign minister) + President of the European Council + the President of the Commission + High Representative of the Union for Foreign Affairs and Security Policy

1) growing power and influence European Parliament VOICE OF THE PEOPLE 1) growing power and influence 2) Members of European Parliament (MEPs) have been directly elected since 1979 5-year terms run on national party tickets 3) 732 seats allocated among MS number of seats for each country ranges from 99 (Germany) to 5 (Malta)

Current political groups in the EP Group of the European People's Party (Christian Democrats) Group of the Progressive Alliance of Socialists and Democrats in the European Parliament Group of the Alliance of Liberals and Democrats for Europe European Conservatives and Reformists Group Group of the Greens/European Free Alliance Confederal Group of the European United Left - Nordic Green Left Europe of Freedom and Democracy Group

European Parlament’ work Preparing for the plenary session: a) MEPs debate the Commission’s proposals in committees (specialise in particular areas of EU activity) b) „Rapporteur” of a proposal – prepares a Report – assisted by „shadow rapporteurs” c) Report gives the background and the pros and cons of the proposal d) The issues for debate are also discussed by the political groups Plenary session: a) Each year, 12 four-day plenary sessions are held in Strasbourg and six two-day sessions are held in Brussels b) Parliament examines proposed legislation and votes on amendments before deciding on the text as a whole

Main roles of the European Parliament 1. Passing European laws — jointly with the Council in many policy areas. The fact that the EP is directly elected by the citizens of the EU helps guarantee the democratic legitimacy of European law. 2. Exercising democratic supervision over the other EU institutions, and in particular the Commission. It has the power to approve or reject the nomination of commissioners, and it has the right to require the Commission as a whole to step down. 3. The power of the purse. Parliament shares with the Council authority over the EU budget and can therefore influence EU spending. It adopts or rejects the budget in its entirety.

Passing European laws Co-legislator: ordinary legislative procedure (co-decision) + some areas - consultation or assent procedures - Providing impetus for new legislation by examining the Commission’s annual work programme, considering what new laws would be appropriate and asking the Commission to put forward proposals.

European Court of Justice UPHOLDING THE LAW 1) The Court’s main tasks: - reviewing the legality of the acts of the institutions of the European Union, - ensuring that the Member States comply with obligations under the Treaties, and - interpreting European Union law at the request of the national courts and tribunals. 2) Court of Justice – General Court – EP & Council may establish specialised courts 3) One judge from each EU country, eight advocates-general, at least one judge from each MS, renewable terms of six years, judges appoint their President, for a period of three years, from amongst themselves. 4) - chamber of three, five or 13 judges (Grand Chamber), or before the full Court - Judgments of the Court are decided by a majority and pronounced at a public hearing. Decisions are published on the day of delivery. The procedure in the General Court is similar, except that there is no opinion from an advocate-general.

Proceedings before the Court of Justice 1) references for a preliminary ruling, 2) actions for failure to fulfil an obligation – so called „infringement procedure”, 3) actions for annulment, 4) actions for failure to act, 5) appeals (against decisions of the General Court), 6) reviews (European Union Civil Service Tribunal – General Court – Court of Justice) Judgements – Orders Special forms of procedure (simplified, urgent)

1) European Central Bank sits atop a system of European central banks responsible for monetary policy manages the euro 2) Complete autonomy in monetary sphere indirectly decides on economic policy

Other EU institutions and bodies Financial Bodies: - European Investment Bank, European Investment Fund European Ombudsman and European Data Protection Supervisor Advisory Bodies – EESC and CoR Interinstitutional Bodies: - Office for Official Publications of the European Union - European Personnel Selection Office - European Administrative School Decentralised bodies (Agencies) of the European Union e.g. OHIM, in the field of CFSP, area of freedom, security and justice, executive agencies

The ordinary legislative procedure

Actors and phases of the ordinary legislative procedure 1. Legislative proposal of the Commission 2. 1st reading in the European Parliament 3. Amended proposal of the Commission 4. 1st reading in the Council of the EU 5. 2nd reading in the European Parliament 6. 2nd reading in the Council of the EU 7. Conciliation procedure

1. Legislative proposal of the Commission Exclusive right to take legislative initiatives Public consultations, preparations, impact assessments The Commission shall submit the proposal to the European Parliament and the Council (and send it to national parliaments) If the Council aims to amend a Commission’s proposal it needs to adopt the amended text only by unanimity

2. 1st reading in the European Parliament Adopts its position and communicates it to the Council. The rapporteur (master of the issue) – assigned from the MEPs – coordinates the preparation of the position (+ role of shadow rapporteurs) The report of the rapporteur is adopted by appropriate parlamentary committee then the plenary session (+ amendments) The Treaty does not set any time limit for the European Parliament to give its position.

3. Amended proposal of the Commission Commission may alter its legislative proposal, enabling it to incorporate European Parliament amendments  which, in its view: - improve the initial proposal, and / or - are likely to facilitate an agreement.

4. 1st reading in the Council - The Council finalises its position on the basis of the Commission’s proposal, amended where necessary, in the light of the European Parliament’s first reading and resultant amendments: - the Council accepts without alteration the Commission’s proposal, which the European Parliament has not amended, and the act can be adopted, - the Council accepts all the European Parliament’s amendments which the Commission has incorporated into its amended proposal, and the act can be adopted, - in all other cases, the Council adopts a common position.

Common position of the Council Political agreement in principle of the legal act + Recitals + legal-linguist check = Common position

General approach: The Council may, on occasion, reach an agreement in principle before the European Parliament delivers its position to influence the adopted EP’s position at 1st reading Informal trilogues (Council + COM + EP) eases reaching an agreement

5. 2nd reading in the European Parliament Council forward the Common position to the EP together with a statement of reasons A three-month time limit (this period may be extended by a month) to take action on the basis of the Council position at first reading. Commission delivers an opinion on the European Parliament’s amendments. EP’ internal procedure is essentially the same than during the 1st reading

Possible results of the 2nd reading in the EP: approves the Council’s position at first reading or has not taken a decision - act is deemed to have been adopted rejects, by a majority of its component members - proposed act is deemed not to have been adopted amendments to the Council’s position at 1st reading→ 2nd reading in the Council

6. 2nd reading in the Council The Council has a period of three months (which may be extended by a further month) to comment EP’s amendments: Council approves all those amendments - act in question is deemed to have been adopted Council does not approve all the amendments of the European Parliament → 3rd reading = Conciliation procedure

7. The Conciliation procedure Delegations of the Council and the EP attempt to reach an agreement along with the amendments of the EP and the common position. Convening a meeting of the Conciliation Committee within six weeks (may be extended by two weeks) from the time of the Council’s rejection of EP’s amendments Informal trilogues at technical or political levels exploring possible avenues of compromise in an informal manner

The COREPER negotiates the proposals during this stage not the Council working parties. The Council (represented by the Presidency) has to gets through the Common position against EP’s amendments during the conciliation procedure. Six weeks (may be extended by two weeks) from the start of the negotiations to reach an agreement - Agreement – „Joint text”: → legal act is deemed to have been adopted (The EP and the Council must adopt the act within six (or eight) weeks, in line with the Joint text.)

- European Parliament and the Council do not approve the Joint text → legal act is deemed not to have been adopted and the legislative procedure is ended

Presidency’s role is important during the whole procedure 1st reading in the Council until the possible conciliation procedure Chairing WPs, COREPER / SCA, Council Meeting – informal trilogues during the 1st and the 2nd reading (Presidency represents the Council – 27 MS) – get involved in the Conciliation committee – signing with the President of the EP the adopted legal act

Thank you for your attention! dr. Páczay György Legal Adviser Ministry for Rural Development Department for EU Coordination 1055 Budapest, Kossuth tér 11., room no. 329 Phone: (06-1) 795-20-37 Cell phone: (06-30) 227-35-80 E-mail: gyorgy.paczay@vm.gov.hu