Lecture on Institutions

Question 1

What is the Treaty of Rome?

Answer 1

A far-reaching document: it laid out virtually every aspect of the economic integration implemented up to the 1992 Maastricht Treaty

Question 2

How is the Treaty of Rome re-labelled by the 2009 Lisbon Treaty?

Answer 2

Treaty on the Functioning of the European Union (TFEU)

Question 3

What is a unified economic area?

Answer 3

An area where firms and consumers located anywhere in the area would have equal opportunities to sell or buy goods throughout the area, and where owners of labour and capital would be free to employ their resources in any economic activity anywhere in the area

Question 4

A key element of the Treaty of Rome are the 4 freedoms, what are they?

Answer 4

Free movement in goods, services, workers and capital

Question 5

What does free trade in goods mean?

Answer 5

Elimination of tariffs, quotas and all other trade barriers

Question 6

Why have common trade policy with the rest of the world?

Answer 6

Avoid trade deflection (“tariff cheating”)

Question 7

What are the 5 main elements of the treaty of rome?

Answer 7

• Unrestricted trade in services
• Free movement of workers
• Free movement in capital
• Exchange rate and macroeconomic coordination
• Common policy in agriculture

Question 8

The treaty of Rome was silent with respect to which important policy areas?

Answer 8

Social and tax policies

Question 9

Under which pillar are most economic-related policies and some of the judicial and police related policies?

Answer 9

Supranational pillar

Question 10

Under which pillar are most foreign and security policies?

Answer 10

Intergovernmental pillar?

Question 11

In what three ways does Supranationality arise in the EU?

Answer 11

• The commision proposes new laws are then voted by Council of Ministers and EU Parliament.
• The commision has direct executive authority
• Rulings by the European Court of Justice

Question 12

The EU is now based on which two treaties?

Answer 12

• Treaty on the European Union (TEU)
• Treaty on the Functioning of the EU (TFEU)

Question 13

To which area in EU law does “deep supranationality” apply

Answer 13

To all areas except those that are explicitly excluded

Question 14

How is the EU’s legal system created?

Answer 14

Case law

Question 15

What are three principles of Eu legal system

Answer 15

1. “Direct effect” of EU law
2. Primacy of EU law
3. Autonomy from national legal systems

Question 16

What are the “Big-5” institutions?

Answer 16

1. European Council (heads of state and governments)
2. council of the EU (member nations’ ministers)
3. European Commission (appointed eurocrats)
4. European Parliament (directly elected)
5. EU Court (appointed judges)

Question 17

What is the highest political-level body in the EU?

Answer 17

The European Council (heads of state and governments), they initiate the most important EU initiatives and policies

Question 18

By which body are all EU major strategic choices made and in which way?

Answer 18

The European Council by consensus - implicit backing of every EU leader

Question 19

What is the EU’s main decision making body?

Answer 19

The Council of the European Union

Question 20

Which powers does the Council have?

Answer 20

• to pass european laws (jointly with European Parliament)
• coordinate the general economic policies
• pass final judgment on international agreements
• approve the EU budget

Question 21

What are two main decision making rules for the Council?

Answer 21

• Unanimity for most important issues
• Qualified majority voting

Question 22

What is the executive branch of the EU?

Answer 22

Th European commision

Question 23

What are three ways they enforce treaties and drive forward European Integration?

Answer 23

• It proposes legislation the the Council and Parliament
• It administers and implements EU policies
• It provides surveillance and enforcment of EU law

Question 24

What are 3 legislative procedures?

Answer 24

• Ordinary legislative procedure > main one and gives Parliament and Council equal power
• Consultation procedure > only parliament gives opinion
• Consent procedure > Council adopts legislation after obtaining the consent of parliament

Question 24

What are the two main tasks of the European Parliament?

Answer 24

• Sharing legislative powers with the Council of Ministers and the Commision
• Overseeing EU institutions, especially the commision

Question 24

Which body has a near-monopoly on initiating the EU law making process?

Answer 24

The European Commission

Question 25

What is the “subsidiarity principle”

Answer 25

Policy should be made at the level that is as close as practical to the people affected

Question 26

What is the “yellow card principle”

Answer 26

National parliaments have the right to express concerns on subsidiarity directly to the institution that initiated the proposed legislation

Question 27

How much percent of the GDP do the Big 5 + NL account for

Answer 27

75%

Question 27

What is the “orange card procedure”

Answer 27

If a majority of national parliaments vote against a proposed law, the commission must review it.

Question 28

How much percent of their GDP do each member pay annually?

Answer 28

A bit less than 1 percent of their GDP

Question 28

What are the EU main revenue sources?

Answer 28

1) Tariff revenue from the Common External Tariff
2) Budget contribution as share of national income