Understanding the EU: Institutions, Policies, and Market Freedoms

Posted on Mar 12, 2025 in Business Administration and Management (BAM)

Council of the EU

The Council of the EU comprises 28 ministers from the Member States and serves as the main formal point for representing national interests. Its most important functions include setting mid-term sectorial policy goals, approving EU legislation, and establishing the annual budget (along with the European Parliament). It has variable configurations, implying a unique structure and formal possibilities for sub-state ministers representing the states. There are 10 different configurations:

  • General Affairs
  • Foreign Affairs
  • Economic and Financial Affairs (ECOFIN)
  • Justice and Home Affairs
  • Agriculture and Fisheries
  • Employment, Social Policy, and Health
  • Transport, Telecommunications, and Energy
  • Environment
  • Education, Youth, Culture, and Sport

All work of the Council is prepared and coordinated by the Permanent Representatives Committee (COREPER), which includes national ministers and a large body of national officers. The presidency rotates every 6 months among pre-established groups (TRIOS), playing a broker and mediatory role with EU institutions. Examples include the Netherlands, Slovakia, and Malta. The voting system is complex, involving double majority: unanimity (100%), simple majority (50 + 1), qualified or double majority (55%, 15 MS, and 65% population), and consensus (no vote).

European Council

The European Council is a non-EU institution that sets general strategic directions, including treaties and institutional modifications, overall declarations about foreign and common security policy, and common positions on international summits where the EU is involved. The first day involves extensive talks, and the second day concludes with a final statement. Except where treaties provide otherwise, decisions of the European Council are taken by consensus. Exceptions include proposing the President for the European Commission to the European Parliament, appointing the High Representative of the EU for Foreign Affairs and Security Policy, and making Council configuration decisions. They meet four times per year in Brussels, with additional extraordinary and informal meetings. It comprises 28 heads of Member States, with a President serving a 2.5-year term (Donald Tusk), maintaining cohesion and consensus in the Council.

European Parliament

Founded by the Treaty of Rome, the European Parliament was initially nominated in 1952 and then elected in 1979. Law-making capacities were enhanced with the Lisbon Treaty and the Single European Act. It does not conduct the usual “executive supervision.”

Tasks

  • EU Legislation
  • EU Budget
  • Control over EU bodies (institutions, agencies, and even dismissing a commission)

Legislative Capacities

Some consider its power limited, while others view it as full. The European Parliament is complex, with 24 official languages. The “Cooperation procedure” involves proposing amendments to draft legislation, which must be accepted by the Commission to reach the Council. The “Assent capacity” is a yes/no vote, used in association agreements or accession negotiations. It has veto capacity in specific policy fields. Other powers include the right to approve or dismiss the Commission and appoint the European Ombudsman. It has limited capacities in “sensitive areas,” playing a co-legislator role with consolidation.

Elected

Each Member State decides how to conduct elections, but there are common principles: direct universal suffrage, proportional representation, secret ballot, and a 5-year term. Citizens elect national parties, which then form European parties.

Internal Structure

Seats are shared out proportionately to the population of each Member State. However, a minimum of 6 seats is guaranteed. MEPs distribution: Germany 96, Malta 6, Spain 54. Total 751. There are 7 political groups, requiring 25 MEPs to form one. There are 22 parliamentary standing committees + 2 special ones, requiring between 24 and 76 MEPs.

MEPs Organization

  • The EP PRESIDENT: Presides, represents parliament in and out of the EU, 2.5-year term.
  • CONFERENCE OF PRESIDENTS: Responsible for organizing Parliament business and legislative planning, relations with other institutions and national parliaments and non-EU countries.
  • THE BUREAU: Lays down the rules for parliament. Includes the President, 14 VPs, and 5 quaestors (advisory capacity).
  • COLLEGE OF QUAESTORS: Responsible for administrative and financial matters directly concerning MS and the ways of doing things.
  • CONF OF COMMITTEE CHAIRS: Works for cooperation between the committees.
  • CONF DELEGATION CHAIRS: Deals with matters concerning the smooth running of interparliamentary delegations.

1. Single Market

64% of EU trade is within the Member States. It was an original plan and a power position for the EU. It is an ongoing project. The Messina and Venice Conferences proposed the idea of economic unification.

TREATY OF ROME

Coordination of economic activities, ensuring stability and economic development. Four freedoms: goods (remove tariffs), labor (get a job all around the community), services (set up business anywhere), capital (foreign investments).

Free Movement of Services

Applies to self-employed workers only (not employees), covering many sorts of services, with some exceptions such as transports (freedom to provide services in the field of transport shall be governed by the provisions of the Title relating to transport). Services include activities of industrial, commercial, craftsmen, and professional characters. Depending on the length of service, we distinguish the right of establishment and the free provision of services. If these cannot be alleged, we consider the additional regularity / periodicity / continuity. A cross-border element is essential: either to provide services or enjoy services. The 4 ways to provide/enjoy services are: the provider travels/moves, the recipient travels, both travel, or neither travels. Legal provisions could affect the free movement, such as direct bannings (Spanish museum case) or indirect bannings. The principle of non-discrimination is delimited just in public authority, public security, public policy or health, and economic objectives can never justify an exception. Restrictions can just be justified on grounds of general interest.

2. Free Movement of Goods

A good is an economically valuable product and potentially subject to commercial transactions. Originary products have free circulation. A Common External Tariff was established in 1968. Harmonization aims to reconcile differences and create common rules. The CJEU played a critical role in its way of designing to reality, as in the Dassonville Case (quantitative restrictions on imports or exports and all measures having equivalent effect shall be prohibited between MS). Public Health controls are not considered measures with equivalent effect. Measures having an equivalent effect may also result from Direct actions (Buy Irish Case) or omissions (Spanish Strawberries Case). Mutual recognition was born with the Cassis de Dijon Case, stating that any product lawfully sold in a market shall be lawful in the single market.

Harmonized Sectors

Fully detailed EU requirements concerning the technical specificities (toys, medical devices..)

Non-Harmonized

Basic health, safety, and environmental standards.

Free Movement of Workers

The 80s-90s saw a claim to a less dirigiste and internationalist model, a regulated capitalist system. A social dimension of the Single market. A worker is a person who for a certain period of time performs services for or under the direction of another in exchange for remuneration. Rights differ for students, retired, or nonactive people. Italian Scientifics Case: prohibition of discrimination for national origin. Public authority is the exception – public security, policy, and health if the alleged measures are also required for any national (an exception of nurses or medicals, professors, scientists, architects..) the CJEU decides in case of doubt. Mutual recognition of professional qualifications, coordination of Social security Systems, after 5 years the right of residence becomes permanent.

In the EU Single Market, the four freedoms of movement have the same proportional weight and have historically considered and regulated in equal terms. Disagree. One of the main objectives of The European Economic Community was the development of a market with the 4 freedoms of movement: goods, capital, services and labor. However, free movement of goods was the first freedom established between the six member states in the EEC. In the other hand, freedom of service was the last freedom to be established. So, historically, the four freedoms have not been regulated in equal terms.

– In 1993, the single market becomes real with the 4 freedoms. So, resuming, in 1993(treaty of Maastricht) the four freedoms become real but, before this date, Europe had already worked in each freedom.

– Doing reference to the weight of the four freedoms, the 4 freedoms do not have, in principle, the same weight. For example the weight that has the freedom of goods is higher than the other freedoms. Freedom of goods is so important to trade, for example, and the countries need to avoid / remove tariff between countries. The other 3 freedoms are a little more complicated: freedom of capitals is difficult because it can create fiscal problems. And freedom of workers and service can create social problems. Also, maybe it is not at all desired that all the European workers and services are constantly moving around European countries as occurs in United States.

– As I have already said in the beginning I refuse the purpose of this exercise because the most important things have more weight( in this case, freedom of goods) and, as it is more important, it will be regulated better. The important things need to be more worked. But the single market as a whole it is important to EU e because helps to bring down barriers, create more jobs and increase overall prosperity in European Union.

The EU Trade policy (with third countries) is totally autonomous, and seeks the major Benefit possible for European companies abroad. Disagree. First of all, The EU trade policy is not totally autonomous because there are other policies like competition policy or the single market that affects to trade policy. An easy example is the free movement of good included in the Single Market. It is difficult to understand the trade policy without this freedom because the free movement of goods bring down barriers to trade and the main objective is to facilitate trade, so free movement of goods and EU trade policy are relevant and we must understand them together. Thanks to the single market EU is a trade super power, but it need to remain competitive.

– Doing reference to the second part of the affirmation that say: “seeks the major benefit possible for European companies abroad”, I am disagree too. It is true that EU trade benefit seeks benefit to the European companies, but this is not the main objective. Trade policy seeks benefit for EU as a whole. In other words, EU trade policy produce benefits to the citizens ( we can buy more diverse things and with cheaper prices), to the countries ( because we export goods which we are more efficient and we import goods which it is difficult to produce in Spain like Chinese food) and also to the companies ( they manufacture goods in order to export and have benefits). So Trade policy benefits everybody.

– Trade policy decisions affect us in many ways: consumer choice, prices, standards… etc EU trade policy is successful because it is one of the areas where the union speaks with one voice. Also trade policy it is very important to our Economic future. Trade affects on employment because 30 million EU jobs depends on trade. Trade is an economic powerful weapon against economic crises in Europe. Trade is synonym of growth. Trade policies affect everyone!


The current institutional architecture of the EU reflects the historical process that have led the European regional integration process to the present state of affairs. All the current institutions are formed as a result of a lot of years of evolution and the European integration process. It is impossible to construct all the institutions in one night. The currents institutions are constantly changing and adapting to the present. Maybe we do not see these changes, but if we see historically, we can see these changes.

– All the institutions are very different of the institutions that we have at the very beginning.

– Today we have many institutions that control all the European Union. The main institutions of UE are: the council, the parliament, the commission and the European court of justice.

– The Council is the legislative and an executive body. On the legislative side, the Council adopts EU legislation and the budget. On the executive side, the Council coordinates the broad economic policies of the member states, concludes international agreements of the EU, develops the common foreign and security policy and reforms the EU treaties.

– The Parliament is half of the EU’s legislative authority (jointly with the Council). The Parliament amends and adopts EU legislation and the budget, and monitors the work of the other EU institutions.

– The Commission is the main executive body of the EU. The Commission is responsible for proposing EU legislation, managing and implementing EU policies and the budget, enforcing EU law (jointly with the ECJ), and representing the EU on the international stage.

– The European Court of justices is the judicial authority of the EU. The ECJ ensures that EU legislation is interpreted and applied in the same way in all member states.

– There are also more institutions like the European Central Bank or the European investment bank that are minus relevant. But they are important too.

– So, all of these institutions maintain its main goals but they have changed thing like the voting system. Or, for example, the European parliament, that in the past it was like an assembly and the present parliament is different to the initial one. Or another change is that the European Union as a whole was more intragovernamental and now, the Supranationalim have more power.



The tensions between Intergovernmentalism and Supranationalism: the epicenter of the European Integration process.The concept of supranationalism refers to have power above the nation or influence in national governments. We must not confuse this concept with Super nationalism concept, that refers to have an extreme or fanatical loyalty to a nation so, fascism. The concepts are similar words but the content is so different.

– In the other hand, the concept of intergovernamentalism is the result of cooperation of the national governments.

– tergovernmentalism and Supranationalism differ not on the role and importance which proponents affirm to member states in the process of European Union integration but also on how they treat the EU institutions.

– It is true that along the history, the European union have evolved: at the beginning the organisms of the European Union was more intergovermentalism but, nowadays, the European Union is based more in the supranationalism.

– Supranationalim seeks the interest of the EU community and intergovermentalism acts in national interest. Doing reference to these two opposed concepts we have: the single market, the central bank, the European court of justice as examples of supranationalism. But the main supranationalism example is the EU trade policy.

– As example of intergovementalism we have the council. But, historically, the formation of the European union is based in intergovermentalism for example with the different treaties where the countries negotiated conditions to enter in new processes of integration. For any intergovernmental policies the EU speaks with 28 voices. And when speaking with a single voice it means the policy has been transferred and it is supranational.

– So, seeing all the arguments, I would not say that Intergovermentalsm vs supranationalism is a tension, but I would consider that is more or less like a debate where there are people defending one posture and people defending another.



To a certain extent Single Market and Competition Policy have to be considered two sides of the same coin One of the paramount aims of the founding fathers of the European Community – statesmen around Jean Monnet and Robert Schuman – was the establishment of a Single Market. To achieve this, a compatible, transparent and fairly standardized regulatory framework for Competition Law had to be created.

– The European competition policy includes 5 main policies: the control of collusion and other anticompetitive practices that affect the EU, prevent the abuse of firms’ dominant market positions, the control of mergers, acquisitions and joint ventures, state aid (control of direct and indirect aid given by member state of the European union to companies and the liberalization of national utilities and infrastructures.

– Resuming, competition policy wants to ensure that rival businesses operate independently of each other and do not use illegal means to outgrow their competitors. Maintaining competitive markets ensures that consumers benefit from:

  • lower prices – rivalry between firms pushes prices down; and
  • better quality – because businesses compete to offer better and innovative services/products.

– With these 5 policies that I have already mentioned, the competition policy seeks the efficiency of the single market and wants to correct its mistakes because from an efficient single market, all the people can obtain profits.

– So, I think that it’s sufficient to ensure that competition policy and the Single Market are two sides of the same coin.


Committee of the Regions

Created in 1992 under the Treaty of Maastricht and established in 1994, the Committee of the Regions (COR) is consulted by the Commission, Council and Parliament on topics affecting local or regional interests (Article 307 Treaty on the Functioning of the European Union – TFEU).

– These topics include economic and social cohesion, employment, social policy, energy and telecommunications, vocational training, and, since the entry into force of the Lisbon Treaty, issues such as climate change and civil protection. The COR may also draw up opinions on its own initiative.

– The COR is composed of 353 members from local and regional authorities (Article 305 TFEU). They are appointed by the Council of the EU for a 5-year term (Article 306 TFEU).

– The COR also has the right to bring legal actions before the European Court of Justice in 2 instances: to protect its own institutional prerogatives, to request the annulment of new EU legislation that it considers being in breach of the principle of subsidiarity, in the policy areas where the EU Treaty requires that the CoR be consulted.

Court of Justice of the European Union

The Court of Justice of the European Union (CJEU) was first created in 1952. The Treaty of Lisbon added to its jurisdictional scope. The CJEU comprises 3 branches:

– the Court of Justice: this court continues to give preliminary rulings, hear some actions against EU institutions brought by EU countries and take appeals from the General Court. It now also gives rulings in the area of freedom, security and justice, makes decisions on police and judicial cooperation in criminal matters, and issues arising from the Charter of Fundamental Rights.

– The Court is composed of 28 Judges (1 from each EU country) and 9 Advocates-General, who present opinions on cases brought before the Court. They are appointed by common accord of EU countries for 6 years.

– the General Court: this court has jurisdiction to hear actions against EU institutions brought by citizens and, in some instances, by EU countries, and appeals from decisions of the Civil Service Tribunal.

– the Civil Service Tribunal: this Tribunal deals exclusively with cases on labour relations between the EU and its civil servants.


Coreper The Permanent Representatives Committee or Coreper (Article 240 of the Treaty on the Functioning of the European Union – TFEU) is responsible for preparing the work of the Council of the European Union. It consists of representatives from the EU countries with the rank of ambassador to the European Union and is chaired by the EU country which holds the Council Presidency.

– Coreper occupies a pivotal position in the EU’s decision-making system. It is both a forum for dialogue (among the Permanent Representatives and between them and their respective national capitals) and a means of political control (guidance and supervision of the work of the expert groups).

– It thus carries out preliminary scrutiny of the dossiers on the Council’s agenda (proposals and drafts for acts tabled by the Commission). It seeks to reach agreement at its own level on each dossier, failing which it may suggest guidelines, options or suggested solutions to the Council.

– The agendas for Council meetings reflect the progress made in Coreper. They consist of A items, to be approved without discussion following agreement within Coreper, and B items, for discussion. Coreper works in 2 configurations: Coreper II, consisting of the ambassadors, deals with items pertaining to the General Affairs, Foreign Affairs, Economic and Financial Affairs and Justice and Home Affairs formations of the Council; Coreper I, consisting of the deputy permanent representatives, prepares all other Council formations.

Customs unionThe customs union (Articles 28-29 of the Treaty on the Functioning of the European – TFEU) is an essential foundation of the EU and of its single 28-country market. For the single market to function properly, EU countries have agreed standardised rules that are applied in a uniform manner by all 28 EU customs administrations. There are no customs duties at the EU Customs Union’s internal borders. All goods circulate freely within the customs union area, whether they are made in the EU or imported from outside. Efforts are also under way to improve customs risk management and the security of the supply chain, as well as to develop procedures to improve the efficiency of customs in enforcing health, safety and environment rules.

Deepening and widening Deepening and widening are 2 schools of thought as to how the EU should develop. Over time, the European Union has progressively evolved into what aspires to be an ‘ever closer union’ among the peoples of Europe (Article 1 of the Treaty on European Union – TEU). The notion of deepening refers to this ever closer union and is seen in the increased integration of the EU. Its clearest manifestation has been the EU’s transition towards economic and monetary union (EMU) and the introduction of the single currency, the euro. Proponents of widening consider that the EU should expand in terms of membership but that this membership should be looser than that desired by the deepening school. The EU has also managed to widen itself, enlarging from 15 countries in 2004 to 28 in 2013.


Dumping Process of achieving economies of scale by increasing the volume of output and reducing unit costs.

European Central Bank (ECB) The European Central Bank (ECB) is the central bank of the euro area and an EU institution located in Frankfurt am Main, Germany. Together with the euro area national central banks, it forms the Eurosystem, which conducts monetary policy in the euro area. Its primary objective is to maintain price stability, i.e. to safeguard the value of the euro. In addition, the ECB, in cooperation with the national supervisors, carries out banking supervision in the euro area and in other participating Member States within the Single Supervisory Mechanism (SSM).

European Development Fund Created by the Treaty of Rome in 1957, the European Development Fund (EDF) is the EU’s main instrument to finance development cooperation with African, Caribbean and Pacific (ACP) countries and overseas countries and territories (OCTs). The EDF finances any project or programme, which contributes to the economic, social or cultural development of the countries in question. It also funds regional cooperation and integration programmes. The EDF uses several types of financing, including grants, procurement contracts, and financial instruments, such as loans, guarantees, equity or quasi-equity, investments or participations, risk- sharing instruments. The EDF is funded by EU countries and has not yet come under the EU’s general budget, even though a heading has been reserved for it in the budget since 1993. The EDF will continue to fund development cooperation with ACP States and OCTs for the period 2014-2020.


European External Action Service (EEAS) In carrying out her duties, the High Representative for Foreign Affairs and Security Policy (HR) is assisted by the European External Action Service (EEAS), the EU’s diplomatic service. The EEAS supports the HR in fulfilling her mandate of conducting the EU’s common foreign and security policy (CFSP), in her capacity as President of the Foreign Affairs Council, and in her capacity as Vice-President of the Commission for fulfilling, within the Commission, the responsibilities incumbent on it in external relations. The EEAS also provides support to the President of the European Council, the President of the Council and to members of the Commission in the exercise of their respective functions in the area of external relations. The EEAS comprises officials and other agents from the EU, including personnel from EU countries’ diplomatic services. EU delegations and crisis management structures within the General Secretariat of the Council, such as the Crisis Management and Planning Directorate (CMPD), the Civilian Planning and Conduct Capability (CPCC) and the European Union Military Staff (EUMS), also form part of the European External Action Service.

European Investment Bank (EIB) Established in 1958 under the Treaty of Rome, the EIB is the EU’s long-term lending institution, providing money for various projects in order to finance viable capital projects which further EU objectives. The EIB’s shareholders are the 28 EU countries. Nearly 90% of EIB lending is to EU countries with the remainder dispersed, under the external lending mandate, to 150 partner-countries around the world. The EIB Group, comprising the EIB and the European Investment Fund (EIF), was created in 2000 with a view to boosting lending to small- and medium-sized enterprises (SMEs). The capital of the EIB was almost doubled between 2007 and 2009 in response to the financial crisis. The total subscribed capital of the EIB was €243 billion at 1st July 2013.

The European Ombudsman Elected by the European Parliament. His function is to receive the complaints from the citizens or legal persons (companies) of the member States concerning instances of maladministration in the activities of the Union institutions, bodies, agencies… in exception of the Court of Justice and he shall examine and report them.


European Union agencies European Union (EU) agencies are bodies set up by the EU to carry out specific technical, scientific or administrative tasks. They are divided into 4 groups: Decentralised agencies carry out technical, scientific or managerial tasks that help the EU institutions make and implement policies. They are set up for an indefinite period and are located across the EU. Executive agencies help the European Commission manage EU programmes. They are set up for a fixed period and must be based in the same location as the Commission (either Brussels or Luxembourg). European Atomic Energy Community Treaty (EURATOM) agencies were created to coordinate national nuclear research programmes for peaceful purposes; to provide knowledge, infrastructure and funding for nuclear energy; and to ensure sufficient and secure supplies of nuclear energy. European Institute of Innovation and Technology (EIT), an independent EU body which seeks to promote Europe’s ability to develop new technologies, by pooling its best scientific, business and education resources. It is located in Hungary.

Generalised Scheme of Preferences (GSP) The EU’s “Generalised Scheme of Preferences” (GSP) allows developing countries to pay less or no duties on their exports to the EU. This gives them vital access to EU markets and contributes to their economic growth. There are three main variants (arrangements) of the GSP Scheme: the standard/general GSP arrangement, which offers generous tariff reductions to developing countries. Practically, this means partial or entire removal of tariffs on two thirds of all product categories. the “GSP+” enhanced preferences mean full removal of tariffs on essentially the same product categories as those covered by the general arrangement. These are granted to countries which ratify and implement core international conventions relating to human and labour rights, environment and good governance.”Everything but Arms” (EBA) arrangement for least developed countries (LDCs), which grants duty-free quota-free access to all products, except for arms and ammunitions.


Foreign Affairs Council The Foreign Affairs Council is made up of European Union Member State Ministers responsible for Foreign Affairs, Defence and Development. These Ministers attend monthly meetings to discuss foreign policy, trade, security, defence and development matters. The High Representative of the Union for Foreign Affairs and Security Policy, Federica Mogherini chairs the Foreign Affairs Council meetings, except for commercial policy issues – when the rotating Presidency takes over the chair. Federica Mogherini is also a Vice-President of the European Commission, ensuring the consistency and coordination of the EU’s external action.

Harmonisation of law Is the process of creating common standards across the internal market. Though each EU member State has the primary responsibility for the regulation of most matters within their jurisdiction and consequently each has its own laws. Harmonisation aims to: create consistency of laws, regulations, standards and practices, so that the same rules will apply to businesses that operate in more than one member State, and so that the businesses of one State do not obtain an economic advantage over those in another as a result of different rules. reduced compliance and regulatory burdens for businesses operating nationally or trans-nationally. An objective of the European Union to achieve uniformity in laws of member states is to facilitate free trade and protect citizens.


Presidency of the Council of the European Union Article 16(9) of the Treaty on European Union provides that the Presidency of the Council of the European Union in its different configurations – other than the Foreign Affairs – be held by EU countries’ representatives in the Council on the basis of equal rotation. The Council decided on it to be carried out by groups of three EU countries determined beforehand. Each member of the trio holds the Presidency for a period of 6 months, thus ensuring the smooth operation of the Council’s work. The Presidency of the Foreign Affairs Council is held by the High Representative for Foreign Affairs and Security Policy (since 2014, Federica Mogherini) who also represents the EU in issues relating to the common foreign and security policy. The responsibilities of the Presidency are: to chair the meetings of Coreper and other Council working parties and committees; to organise and manage the Council’s business in line with its rules of procedure.

President of the European Commission Under Article 17 of the Treaty on European Union (TEU), the European Council acting by a qualified majority proposes to the European Parliament (EP) a candidate for President of the European Commission. The choice of candidate must take the result of the EP elections into account. The EP elects the proposed candidate by a majority of its members. If a majority is not obtained, the European Council must propose a new candidate within 1 month. Further to proposals from EU countries, the Commission President must agree with the Council of the EU on the list of members of the Commission. His/her agreement is needed to appoint the EU’s High Representative for Foreign Affairs and Security Policy (who also becomes a Commission Vice-President). The President: decides on the Commissioners’ portfolios and the Commission’s internal organisation; provides the Commission’s political guidance to fulfil its tasks; leads the Commission’s work; chairs the College of Commissioners’ meetings; represents the EU around the world, at the level of Heads of State and Government, in matters falling under the Commission’s responsibility, for example in G7 meetings; takes part in the European Council and in major debates in the EP. Jean-Claude Juncker, former Luxembourg Prime Minister, was elected President for the period 1 November 2014 – 31 October 2019.


President of the European Council Article 15 of the Treaty on European Union (TEU) establishes the position of president of the European Council. The President is elected by the European Council by a qualified majority for a term of 2½ years, renewable once. He/she cannot simultaneously hold any national office. The main functions of the President are:

to independently and impartially chair and drive the European Council; to prepare the Council’s work and ensure its continuity in cooperation with the President of the Commission and on the basis of the work of the General Affairs Council; to seek cohesion and consensus among member countries; to ensure the EU’s representation on issues concerning the common foreign and security policy without prejudice to the powers of the EU’s High Representative for Foreign Affairs and Security Policy. to report to the Parliament about the work of the European Council. On 1 December 2014, Donald Tusk succeeded Herman Van Rompuy as President of the European Council.

Subsidiarity The principle of subsidiarity is defined in Article 5 of the Treaty on European Union. It aims to ensure that decisions are taken as closely as possible to the citizen and that constant checks are made to verify that action at EU level is justified in light of the possibilities available at national, regional or local level. Specifically, it is the principle whereby the EU does not take action (except in the areas that fall within its exclusive competence), unless it is more effective than action taken at national, regional or local level. It is closely bound up with the principle of proportionality, which requires that any action by the EU should not go beyond what is necessary to achieve the objectives of the Treaties. In the case of a breach of the principle of subsidiarity, the Committee of the Regions or EU countries may refer an adopted act directly to the Court of Justice of the EU.


Trans-European networks (TEN) The function of trans-European networks (TENs) is to create a modern and effective infrastructure to link European regions and national networks. TENs are essential to the proper operation of the EU’s single market and to employment, since they ensure the free movement of goods, persons and services. Articles 170-172 and 194 of the Treaty on the Functioning of the European Union provide the legal basis for TENs, which exist in the following three sectors of activity: Trans-European transport networks (TEN-T) cover road and intermodal transport, waterways and seaports, and the European high-speed railway network. Trans-European energy networks (TEN-E) cover the electricity and natural gas sectors. They help to create a single energy market and contribute to security of supply. Trans-European telecommunications networks (eTEN) aim at the deployment of trans-European e-services in the public interest: e-health, e-learning, e-government, etc.


Transport policy EU The EU’s transport policy aims to increase mobility, remove major barriers in key areas and fuel growth and employment. Articles 90-100 of the Treaty on the Functioning of the European Union provide the legal bases for the EU’s transport policy. At the same time, the aim is to dramatically reduce Europe’s dependence on imported oil and cut carbon emissions in transport by 60 % by 2050. By 2050, key goals will include: no more conventionally-fuelled cars in cities; 40 % use of sustainable low-carbon fuels in aviation; at least 40 % cut in shipping emissions; a 50 % shift of medium-distance intercity passenger and freight journeys from road to rail and waterborne transport. All of these aim to contribute to a 60 % cut in transport emissions by the middle of the century. Other topics falling within the EU’s transport policy include infrastructure planning, information technology applications, security & safety, passenger rights, and international cooperation (safety, security and environmental standards setting in international organisations).