EU and its insitutions

Question 1

Free trade area

Answer 1

group of countries that agree to remove any taxes or tariffs on a specific group of products that move between their countries (preferential trade agreement). The most basic form of economic integration that countries can enter into with each other. Some free trade areas include NAFTA (North American Free Trade Area)

Question 2

Customs union

Answer 2

the countries within the union agree to abolish taxes and tariffs between member nations to encourage free movement of goods and services, these countries also agree to establish and maintain identical external tariffs with regard to trade with non-parties (goods from external parties have tariffs imposed when they enter the customs union area but after this there are no additional tariffs for movement between countries)

Question 3

Internal market (single market)

Answer 3

There is a common customs policy as well as free movement of the factors of production- involves the free movement of goods, services, capital and people. Often these markets have regulations on things such as packaging, safety etc.

Question 4

Economic union

Answer 4

Represents a more intense form of economic integration, the parties to an economic union all use the same currency eg. The eurozone use the euro.

Question 5

Political union

Answer 5

The deepest form of integration between countries, where the parties have a single government eg. The USA. The EU doesn’t have a political union, some argue that it does, but it cannot be compared to the USA in terms of political organisation

Question 6

Primary treaties of the EU

Answer 6

Treaty on Functioning of the European Union (TFEU) - formerly the Treaty of Rome 1957
Treaty on European Union (TEU) 1992

EU Charter on Fundamental Rights (CFR) 2000- this has the same legal value as primary Treaties

Question 7

Amending treaties of the EU

Answer 7

The Single European Act (SEA) 1985; Treaty of Maastricht (1992) & Danish ‘no’; Treaty of Amsterdam (1997); Treaty of Nice (2000) & Irish ‘no’; Treaty of Lisbon (2009) & Irish ‘no’

When the member states want to amend one of the primary treaties, they set out the contents in an amending treaty

Question 8

26/62 Van Gend en Loos case

key case

Answer 8

A Dutch duty increase on glue imports from Germany was challenged under Article 30 TFEU, which bans such trade barriers. The key issue was whether individuals (a company in this case) could directly invoke EU law. The Court ruled that EU law grants rights to individuals, making the EU a unique legal order beyond traditional international law.
* under EU law individuals are subjects of the law
* This was the first time that the Court of Justice set out it’s vision for European integration and it’s belief that the EU, was not just a traditional international organisation like the Council of Europe or the UN

Question 9

Principle of Conferral

Answer 9

Any activity that the EU undertakes, whether it is an area of exclusive competence or shared competence, it is based upon the power given to the EU by the member states.

• there is tension in this area as the European Courts of Justice states that the EU is it’s own autonomous being, an independent entity which has it’s own inherent powers

Question 10

Principle of Subsidiarity

Answer 10

Forces the EU to prove that it is in the best position tackle the problem that is identified in the proposed measure- so EU has to demonstrate that it is better for the EU to act rather than an individual member state, because of the nature of the problem

There is a presumption in favour of the Member States: union only acts if the twofold test is met:
* a) MS cannot achieve the objectives sufficiently and,
* b) by the reason of the scale or effects, the Union can achieve them better.

Article 5 TEU, and Articles 2 and 4 TEFU

EU also has to meet the principle of proportionality

Question 11

Principle of Proportionality

Answer 11

The content and form of Union action shall not exceed what is necessary to achieve the objectives of the Treaties

Article 5 TEU

Question 12

Case C-58/08 Vodafone [2010]

Answer 12

To be proportionate, a measure not be manifestly inappropriate to achieve its objective.

Facts:
* A regulation adopted on the basis of Article 114 TFEU which caps the retail and wholesale charges roaming services on public mobile networks for voice calls between Member States
* Vodafone and other phone companies challenged the regulation on the following grounds:
* It lacked legal basis under Article 95 EC
* It was disproportionate as it was not confined to imposing ceilings for the wholesale charge but also retail charges
* The ECJ upheld the regulation it was competent, proportionate and fulfilled the principle of subsidiarity

Question 13

European Parlianment

Answer 13

• Article 14 TEU
• Is a legislative body
• Is the only directly elected parliament in the world
• Has over 700 Members of the European Parliament - these members are from every EU MS and the amount of MEP from each MS depends on the size of the MS (could be unfair to smaller states)

Question 14

European Council

Answer 14

• Article 15 TEU
• Made up of the heads of state/heads of government from each of the MS
• Role includes agreeing on policy goals for the EU, agreeing on amendments
• is a non-legislative body

Question 15

The Council of the EU

Answer 15

• Article 16 TEU
• Is a legislative body
• Made up of ministers from the MS (energy ministers, sec of state etc) - some argue that this may be more democratically legitimate than the European Parliament as the members themselves are not elected to the Council but they have each been elected to office in their respective MS
• Doesn’t meet up as one body, as it has 10 different formulations - so all 27 energy ministers meet up etc
• can delegate tasks to the European Commission

Question 16

European Commission

Answer 16

• Functions as the EU’s executive and civil service, overseeing policy implementation, legislation drafting, and law enforcement.
• Composed of 27 Commissioners (one per member state), each managing a specific portfolio (e.g., trade, competition) with support from their own cabinet.
• Independent of national governments—Commissioners serve the EU’s interests, not their home states, during their 5-year terms.
• Key powers include:
• Launching infringement procedures (Article 258 TFEU) against non-compliant member states.
• Enforcing EU competition law (Articles 101 & 102 TFEU), including imposing fines.
• Often viewed as the most powerful EU institution, raising concerns about overreach due to its broad authority.