Financial Market and Institiution - PowerPoint

							THE EUROPEAN UNION
 Institutions and Legal
       Framework
         Michele Colucci
      Email: info@colucci.eu
    Web site: www.colucci.eu
   Parma 24-25 November 2007


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PURPOSES OF THIS COURSE

INTRODUCING THE EU LEGAL ORDER
UNDERSTANDING THE EU
INSTITUTIONS‟ MECHANISM
EU LAW IN MOTION
THE FUTURE OF THE EU:BEYOND THE
REFORM TREATY (RT)


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What is the European Union?
DREAM...
– Monnet , Schuman, Spinelli,...
HOPE
– Peace and well being of its people (art.3 RT)
A REALITY
– As of 1.1.2007: 27 Member States, one
  currency for 13 Member States, more than
  483.000.000 people “united in diversity”!

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Population figures: EU-27
Country                     Population   % of population in EU-27
Germany                     82.54        17.04
France                      59.90        12.37
UK                          59.33        12.25
Italy                       57.48        11.87
Spain                       40.98        8.46
Poland                      38.19        7.88
Romania                     21.71        4.48
Netherlands                 16.26        3.35
Greece                      11.05        2.28
Portugal                    10.48        2.16
Belgium                     10.40        2.15
Czech Republic              10.21        2.11
Hungary                     10.12        2.09
Sweden                      8.97         1.85
Austria                     8.09         1.67
Bulgaria                    7.80         1.61
Denmark                     5.40         1.11
Slovakia                    5.38         1.11
Finland                     5.22         1.08
Ireland                     4.03         0.83
Lithuania                   3.45         0.71
Latvia                      2.32         0.48
Slovenia                    1.99         0.41
Estonia                     1.35         0.28
Cyprus                      0.73         0.15
Luxembourg                  0.45         0.09
Malta                       0.40         0.08
Total                       483.44       100 %
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         HISTORIC STEPS
Treaty of Paris, which set up the European Coal and
Steel Community (ECSC) in 1951 (expired on 23 of July
2002);
Treaties of Rome, which set up the European Economic
Community (EEC) and the European Atomic Energy
Community (Euratom) in 1957.
Single European Act (1986);
Treaty of the European Union (Maastricht, 1992);
Treaty of Nice (2001).
Treaty establishing a Constitution for Europe signed in
Rome on 29 october 2004
Reform Treaty (agreement on 18-19 october 2007)

                                                          5
THE EUROPEAN UNION (2007):
A political and economic structure




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THE EUROPEAN UNION IN THE
     REFORM TREATY
“THE UNION SHALL REPLACE AND THE
EUROPEAN COMMUNITY” (art. 1)
Single Legal Personality for the EU: no more
pillar structure
VALUES:
–   respect for human dignity,
–   freedom,
–   democracy,
–   equality,
–   the rule of law and respect for human rights (art.2).


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                              AIMS
AIMS:
 – “Internal Market”,
 – sustainable development based on balanced economic growth and
   price stability,
 – a highly competitive social market economy,
 – full employment and social progress,
 – a high level of protection and improvement of the quality of the
   environment, scientific and technological advance.
It shall combat social exclusion and discrimination,
 shall promote
 – social justice and protection,
 – equality between women and men, solidarity between generations and
   protection of the rights of the child,
 – and solidarity among Member States.
It shall respect its rich cultural and linguistic diversity (art. 3 RT).



                                                                           8
     THE INSTITUTIONS
THE EUROPEAN PARLIAMENT
THE EUROPEAN COUNCIL (art.9- 9bis RT)
THE COUNCIL
THE EUROPEAN COMMISSION
THE COURT OF JUSTICE
THE EUROPEAN CENTRAL BANK (art.9 RT)
THE COURT OF AUDITORS



                                        9
  OTHER INSTITUTIONS
THE COMMITTEE OF REGIONS
THE EUROPEAN ECONOMIC AND
SOCIAL COMMITTEE
THE EUROPEAN INVESTMENT BANK
AGENCIES




                               10
THE EUROPEAN COMMISSION
        Structure

PRESIDENT AND 26 COMMISSIONERS
(2007), 15 (RT).
Secretariat General, Legal Service
36 DIRECTORATES- GENERAL
(DGs):Agriculture, Environment,
Employment and Social
Affaires,Transport, and so on.

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  The European Commission
            Role

INITIATOR OF LEGISLATIVE
PROPOSALS
GUARDIAN OF THE TREATIES
EXECUTIVE ARM OF THE EU
MOUTHPIECE FOR THE EU AT
INTERNATIONAL LEVEL


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THE EUROPEAN PARLIAMENT
        Structure
785 Members from all 27 EU countries
– Malta (5 seats), Germany (99 seats) (96).
– 751 members (RT).
17 committees
Administrative offices in Luxembourg
Plenary sessions in Strasbourg
Committee meetings in Brussels

                                              13
Member state       Seats    Member state      Seats
  Germany          99(96)      Austria           18
  France           78(77)      Bulgaria          18
  Italy            78(76)      Finland           14
  United Kingdom   78(76)      Denmark           14
  Spain               54       Slovakia          14
  Poland              54       Ireland           13
  Romania             35       Lithuania         13
  Netherlands         27       Latvia             9
  Belgium             24       Slovenia           7
  Czech Republic      24       Cyprus             6
  Greece              24       Estonia            6
  Hungary             24       Luxembourg         6
  Portugal            24       Malta              5
  Sweden              19    Total:          785(751)

                                                       14
                               Political Groups
Formation of political groups:
           MEPs elected in at least one-fifth of the MSs – new rule since
           1.1.2007
           minimum number of MEP’s required – 20
   PPE-DE Group of the European People‟s Party and European Democrats
   (277)
   PSE Socialist group (217)
   ALDE Group of the Alliance of Liberals and Democrats for Europe (106)
   UEN Union for Europe of the Nations Group (44)
   Verts / ALE Group of the Greens /European Free Alliance (42)
   GUE/NGL Confederal Group of the European United Left - Nordic Green
   Left (41)
   IND / DEM Independence / Democracy (24)
   IDS Identity, Tradition and Sovereignty Group (21)
   NI Non-attached (13)
Note: figures as of May 2007




                                                                            15
THE EUROPEAN PARLIAMENT
          Role
PASSING EUROPEAN LAWS – jointly
with the Council
“DEMOCRATIC SUPERVISOR” over the
other EU institutions
BUDGETARY POWER




                                   16
                     THE COUNCIL
                       Structure
One minister from each Member State
9 different Council configurations
       General Affairs and External Relations (including European Security and Defence
       Policy and Developmnet Co-operation
       Economic and Financial Affairs (including budget)
       Agriculture and Fisheries
       Employment, Social Policy, Health and Consumer affairs
       Competitiveness (!) – comprising
                  Internal Market
                  Industry
                  Research
                  Tourism
       Justice and Home affairs (including civil protection)
       Environment
       Transport, Telecommunications and Energy
       Education, Youth and Culture (including audiovisual matters)
Council Presidency: rotation every six months
General Secretariat
Location: Brussels


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 How does the Council work?
Working groups – more than 250
Coreper (Committee of the Permanent
representatives off the MS‟s) – responsible for
preparing the work of the Council
     Coreper I Council of Ministers (9 configuration)
     Coreper II
      Seat in Brussels – but holds meetings in Luxembourg as
     well (during April, June and October)




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                  COREPER I and II
Coreper I
Composed of the Deputy Permanent Representatives, prepares the ground for
  the following Council configurations:
    –   Employment, Social Policy, Health and Consumer Affairs;
    –   Competitiveness (internal market, industry, research and tourism);
    –   Transport, Telecommunications and Energy;
    –   Agriculture and Fisheries;
    –   Environment;
    –   Education, Youth and Culture (including audiovisual);
Coreper II
Composed ofthe Permanent Representatives, prepares for the other
  configurations:
    • General Affairs and External Relations (including European security and defence
      policy and development cooperation);
    – Economic and Financial Affairs (including the budget);
    – Justice and Home Affairs (including civil protection).



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 Responsibilities of the Council
To pass EU legislation
To co-ordinate economic and social
policies of MS
To conclude international agreements
between the EU and other countries
To approve the EU‟s budget
To develop the EU‟s CFSP
To coordinate co-operation in the area of
Freedom, security and justice
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             The Council:
            voting system
UNANIMITY
– CFSP
– Taxation
– Asylum and Immigration policy
Qualified Majority voting (in some cases a
two thirds majority) and
– minimum of 232 votes is cast in favour
– representation of at least 62% population

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 Number of votes for MS (2007)
Number of Votes
          according to population
          but not strictly proportional, adjusted to the less populous coountries
  Germany, France, Italy and the United Kingdom 29
  Spain and Poland 27
  Romania 14
  Netherlands 13
  Belgium, Czech Rep., Greece, Hungary and Portugal 12
  Austria, Sweden, Bulgaria 10
  Denmark, Ireland, Lithuania, Slovakia and Finland 7
  Cyprus, Estonia, Latvia, Luxembourg and Slovenia 4
  Malta 3

TOTAL 345




                                                                               22
   EUROPEAN COUNCIL (The
  summit) Art. 4 EU- Art. 9b RT
Neither an EU institution nor a legislator
– introduced by the Single European Act (SEA)
– official status since the Maastrichti Treaty (TEU)
provides the Union with the necessary impetus for its
development and defines the general political directions
and priorities.
Composition: Heads of State or Government of the
Member States and the President of the Commission.
President elected for 2 and half years
Council meets at least twice a year
submit to the European Parliament a report after each of
its meetings and a yearly written report on the progress
achieved by the Union.

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       COURT OF JUSTICE

Composition - 1 judge per each Member State
Full court (27 judges) -Grand Chamber” (13 judges) -
chambers of 5 or 3 judges
Appointed for a term of 6 years by joint agreement of the
MS‟s
President for 3 years
8 (11 RT)“advocates general” (AG= Amicus Curiae)
     present reasoned opinions („conclusions”) to Court
Seat - Luxembourg



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   THE COURT OF JUSTICE
           Role
to ensure that:
– EU law is complied with
– Treaties are correctly interpreted and applied.
It intervenes by:
– References for a preliminary ruling
– Actions for failure to fulfil an obligation
– Actions for annulment
– Actions for failure to act.

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       CoJ: the procedure
Written phase:
– Written statements from the parties
– Reports by judges
Oral phase
– Public hearing
Opinion from the advocate General
Judgement decided by a majority


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   COURT OF FIRST INSTANCE
              and
EUROPEAN CIVIL SERVICE TRIBUNAL
CFI: Created in 1989
1 judge per MS
No Advocates General
Cases on:
– Actions brought by private individuals
– Competition law


EUROPEAN UNION CIVIL SERVICE TRIBUNAL
 – 7 judges
 – Disputes between EU/civil servants

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     The Court of Auditors
checks that :
– all the European Union's revenue has been
  received;
– all its expenditure incurred in a lawful and
  regular manner
– EU budget has been managed soundly.




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   The EESC and the CoR
EESC:
– 317 members: Workers, Employers, others
  (NGOs, Academics)
– Consultation role
CoR:
– 317 members: regional and local authorities
– Consultation role



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     EUROPEAN OMBUDSMAN
          (Art. 195 EC)
Created by the Maastricht Treaty
Elected by the EP (Nikiforos Diamandouros) for
5 years
Duties
    Investigate maladminsitration by the European Institutions
    (except the European Courts)
    following by a complaint or on own initiative
Powers of the Ombudsman
    Information (the Institiution concerned has 3 months to give a
    detailed opinion on the matter)
    conciliation
    recommendation
     report to the EP

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European Community Agencies
Bodies set up by the EU to carry out a very
specific technical, scientific or management task
within first pillar
Legal basis: regulation specifying its task
currently 23 bodies that match the definition of a
Community Agency under the name
     centre
     institute
     foundation
     office
     authority


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European Community Agencies
European Centre for the Development of Vocational Training (Cedefop) - Thessaloniki
European Foundation for the Improvement of Living and Working Conditions (EUROFOUND) -
Dublin
European Environment Agency (EEA) - Copenhagen
European Training Foundation (ETF) - Turin
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) - Lisbon
European Medicines Agency (EMEA) - London
Office for Harmonization in the Internal Market (Trade Marks and Designs) (OHIM) - Alicante
European Agency for Safety and Health at Work (EU-OSHA) - Bilbao
Community Plant Variety Office (CPVO) - Angers
Translation Centre for the Bodies of the European Union (CdT) - Luxembourg
European Fundamental Rights Agency - Vienna
European Agency for Reconstruction (EAR) - Thessaloniki
European Food Safety Authority (EFSA) - Parma
European Maritime Safety Agency (EMSA) - Lisbon
European Aviation Safety Agency (EASA) - Cologne
European Network and Information Security Agency (ENISA) - Heraklion
European Centre for Disease Prevention and Control (ECDC) - Stockholm
European Global Navigation Satellite System Supervisory Authority




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                            SUMMING UP:
                           REFORM TREATY
                      (same as in the Draft Constitutional Treaty)
Double majority decision making in Council of Ministers
 – 55% of member states and 65% of the EU's population in favour
 – Polish request accepted: new voting system will only apply from 2014
 – Extra transition period until 2017 when additional provisions to block a decision will apply

Extending qualified majority voting
 –    40 new policy areas
 –    Especially: asylum, immigration, police and judicial cooperation in criminal matters;
Permanent Council presidency
 –    Chair EU Summits for a 2.5 years, renewable - instead of six-month rotation

High Representative of the EU for Foreign Affairs and Security Policy
 –    Replace current EU High Representative for Foreign Affairs Javier Solana and the external relations commissioner
 –    Name „EU Foreign Minister‟ dropped

Reducing the number of Commissioners from 27 to 15 by 2014

Single legal personality for the EU – no more pillar structure
EU competende on Sport

National parliaments’ role enhanced
 –    right to raise objections against draft EU legislation

Exit clause - possible for Member States to leave the EU!!!!!




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                New Items
        and changes compared to the
            Constitutional Treaty
Reference to new challenges
 –   climate change
 –   energy solidarity

Applying new opt-in/out provisions
 –   policies on border checks
 –   asylum and immigration
 –   judicial co-operation in civil matters
 –   judicial cooperation in criminal matters
 –   police co-operation

Name „Constitution‟ discarded

No reference to the symbols and anthem of the EU

Full text of the Charter of Fundamental Rights replaced by cross-reference with the
same legal value



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The Reform Treaty and the way
           ahead
Final adoption at the European Council in
December 2007
To be ratified by every Member State‟s
parliament – Ireland: referendum is
obligatory
Netherlands, UK or others: referendum is
optional
Keeping in mind that ….

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WE DO NOT UNITE
STATES, WE UNITE
    PEOPLE.

        Jean Monnet (1888-1979)



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