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

2. Institutions and functions
European Union
Institutions and functions

3. 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

4. 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

5. 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)

6. - 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

7. 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

8. 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

9. 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)

10. 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

11. 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.

12. 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

13. 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.

14. 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.

15. 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

16. 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

17. 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.

18. 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

19. 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)

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

21. 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

22. 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)

23. 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

24. 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

25. 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.

26. 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.

27. 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.

28. 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)

29. 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

30. 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

31. The ordinary legislative procedure

32. 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

33. 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

34. 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.

35. 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.

36. 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.

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

38. 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

39. 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

40. 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

41. 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

42. 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

43. 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.)

44. - 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

45. 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

46. 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)
Cell phone: (06-30)