Institutional Europe: History, Institutions, and EU Law

European Integration: The History of the EU

Post-WWII Reconstruction and the Council of Europe

World War II left Europe in disarray, fostering a need for reconstruction and institutions capable of ensuring peace. Notable global efforts included the founding of the United Nations in 1945 and the Universal Declaration of Human Rights in 1948. In Europe, the Council of Europe was established in 1949, marking the first step toward regional integration. Although it is not an EU institution, the Council of Europe promotes peace, justice, international cooperation, and unity-values reflected in the European Convention on Human Rights. Its application is overseen by the European Court of Human Rights in Strasbourg, independent of EU institutions like the European Court of Justice (ECJ) in Luxembourg. Starting with ten countries, the Council of Europe now comprises 46 members.

ECSC and Euratom: Early Steps Toward Integration

Alongside the Council of Europe, the idea of European unification gained momentum. In 1950, the Schuman Declaration proposed gradual integration through concrete actions to resolve longstanding ideological conflicts, particularly between France and Germany. This vision materialized in 1951 with the European Coal and Steel Community (ECSC), where France, Germany, Italy, and the Benelux countries pooled coal and steel resources under a common authority to prevent future wars. A similar initiative followed in 1957 with the founding of Euratom, aiming to ensure atomic energy was used exclusively for peaceful purposes.

The European Economic Community (EEC)

The ECSC and Euratom laid the groundwork for deeper economic integration. In 1957, the Treaty of Rome established the European Economic Community (EEC), effective in 1958. Its objectives, outlined in Article 2, included free movement of goods, services, capital, and labor, as well as the creation of a customs union, competition policies, and common commercial policies. The EEC also introduced permanent institutions, including the Commission, ECJ, Council, and Assembly, which gained law-making powers and enforcement mechanisms. The ECJ ensured uniform interpretation of European law through preliminary reference procedures, fostering a law-based system. The treaties adopted a functionalist approach, granting institutions powers only as conferred by the treaties (principle of conferral).

Landmark Cases: Van Gend en Loos and Costa v. ENEL

The Van Gend en Loos (1962) ruling established the principle of direct effect, asserting that European treaties create rights directly applicable to individuals, marking a "new legal order." Similarly, the Costa v. ENEL case (1964) introduced the principle of supremacy, affirmingthat EU law takes precedence over conflicting national laws to ensure uniformity across member states.

Integration Through Crises: From the 1970s to COVID-19

EU integration faced challenges in the 1970s, including a recession and rising protectionism. The Luxembourg Compromise temporarily allowed states to bypass EEC policies in cases of vital national interest. Despite setbacks, the ECJ advanced principles like mutual recognition and teleological interpretation to strengthen the internal market. Significant milestones included the UK's accession in 1973, the first direct elections for the European Parliament in 1979, and the Single European Act (1986), which introduced qualified majority voting to prevent decision-making deadlocks. The fall of the Berlin Wall (1989) and German reunification prompted further integration, culminating in the Maastricht Treaty (1992). This treaty created the European Union, introduced the principles of subsidiarity and residual competence, and expanded EU objectives beyond economic integration to include monetary union, European citizenship, and democratization.

The Evolution of the EU: Multi-Speed Europe

The Maastricht Treaty established three pillars:

1. The European Community (economic integration).
2. Common Foreign and Security Policy (intergovernmental decision-making).
3. Cooperation in Justice and Home Affairs (civil and criminal law, asylum policy).

This multi-speed integration allowed dissenting states like the UK to opt out of certain policies. Subsequent treaties, including the Treaty of Nice (2000) and the Treaty of Lisbon (2007), further refined institutional structures. The Lisbon Treaty introduced the Charter of Fundamental Rights and consolidated the EU's legal framework.

Recent Challenges and Future Outlook

Major crises, including the 2008 financial crisis, Brexit, the COVID-19 pandemic, and geopolitical tensions such as the Russia-Ukraine conflict, have tested EU unity. Despite these challenges, the EU remains a dynamic entity committed to fostering peace, stability, and cooperation across Europe.

EU Institutions

The EU can be understood through two key characteristics: intergovernmentalism and supranationalism. Intergovernmentalism refers to decision-making by national governments based on consensus, considering domestic constitutional requirements. Supranationalism, or the "community method," involves transferring powers to EU institutions, which are not solely composed of government representatives. Decisions are made without unanimity, andinstitutions like the directly elected European Parliament, the independent European Commission, and the supranational Court of Justice are key features. Here is a basic outline of the EU institutions:

• European Council: Composed of Heads of State or Government, it provides political direction and sets the EU's priorities. It is not a legislative body but guides the political agenda.
• Council of the EU: Comprised of national ministers, it co-legislates with the European Parliament on matters like the EU budget.
• European Parliament: Directly elected by EU citizens, it co-legislates and holds the European Commission accountable.
• European Commission: Independent officials representing the EU's collective interests, it has broad powers to legislate, enforce laws, and represent the EU internationally.

EU institutions are founded on democratic principles, as outlined in Article 10 TFEU. It mandates direct democratic accountability for the European Parliament, where citizens are directly represented. However, the legitimacy of the European Council is based on indirect democratic accountability, as its members are democratically accountable at the national level, though concerns about transparency remain.

European Council

The European Council, regulated by Article 15 TEU, provides the EU with political direction. Its members include Heads of State or Government, the President of the European Council (currently Charles Michel), and the European Commission President. The High Representative for Foreign Affairs participates when external issues are discussed. The European Council meets every six months, setting the political agenda but not legislating. The President of the European Council is elected for a two-and-a-half-year term (renewable once) and chairs meetings, ensuring continuity with the Commission and the General Affairs Council. After meetings, the President reports to the European Parliament.

Council of Ministers and High Representative

Regulated by Article 16 TEU, the Council of Ministers is composed of national ministers who vote on EU legislation. It has various configurations depending on the issue at hand, such as the Economic and Financial Council (ECOFIN) for economic matters. The Council approves the EU budget and enters international agreements with the Parliament. Decisions are usually made by qualified majority voting (QMV), requiring 55% of member states representing at least 65% of the EU population. A blocking minority requires at least four member states representing 35% of the population. Rare proposals may require 72% of member states representing 65% of the population. Key configurations include the General Affairs Council, which prepares the European Council's work, and the Foreign Affairs Council, chaired by the High Representative for Foreign Affairs, responsible for external relations.The High Representative for Foreign Affairs (currently Josep Borrell) is appointed by the European Council and chairs the Foreign Affairs Council. This role, governed by Article 18 TEU, is central to EU foreign policy and has significant influence both within the European Council and the European Commission.

European Parliament

The European Parliament (EP), directly elected since 1979, has 701 members. It meets in Strasbourg (for plenary sessions) and Brussels (to engage with other EU institutions). Members are elected according to national rules but must ensure proportional representation across the EU. The EP co-legislates with the Council of the EU, passing legislation and approving the EU budget. It also elects the President of the Commission, who is proposed by the European Council, and has the power to make the Commission resign. Additionally, the EP supervises EU institutions and can trigger proceedings under Article 7 TEU against a member state for violating EU values.

European Commission

Regulated by Article 17 TEU, the European Commission is a supranational institution that represents the collective interests of the EU. It monitors the application of EU law, initiates legislation, manages the EU budget, and represents the EU in external relations. The Commission is headed by a President (currently Ursula von der Leyen) and includes 27 Commissioners, one from each member state. Commissioners are appointed by the European Council and must be approved by the European Parliament. The President sets the Commission's agenda and can request the resignation of Commissioners. The Commission holds the exclusive right to initiate legislation, playing a significant role in shaping EU policies and enforcing laws. Although initially conceived as a technocratic body, the Commission has evolved into a political entity, with considerable influence in EU decision-making. Its lack of direct democratic election raises questions about its legitimacy, but it is approved by the democratically elected European Parliament. Despite being politically influential, it remains somewhat distant from citizens.

EU Competences

When we speak about competences, we refer to the power to act. Member states possess inherent competences, as they are sovereign and can act in any field. In contrast, the EU operates based on the principle of conferral, meaning it only has the competences that member states have conferred upon it. This principle is grounded in the EU's foundational treaties, reflecting the idea that a group of states voluntarily cedes some of their sovereignty to a supranational institution.