SUMMARY

 Introduction _____________________________________ page 2  Formation ______________________________________ y Formation y Reference to the process of EU expansion  Organization: Institutions __________________________  European legal system: ____________________________
y The constitutive treaties y Amending treaties y Other treaties

page 3

page 5 page 12

 Community law ___________________________________ page 16  Some economic issues: _____________________________ page 19

y Union Budget y Structural Funds y Economic, social and territorial cohesion

 Functioning _____________________________________ page 22

y Competences of the union y European monetary system y Basic liberties

 Conclusion ______________________________________ page 25

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INTRODUCTION
The EU is an ass iati n of count ies that at the present is formatted for 27 members. These states are: rance, Ital , Germany, Netherland, Luxembourg, Belgium, U.K, Denmark, Ireland, Greece, Spain, Portugal, Austria, inland, Sweden, Poland, Hungary, The Czech Republic, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Cyprus, Malta, Romania, and Bulgaria.

The European Union was born the 1950s with the aim of ending the frequent wars between neighbors. Today this goal remains, but there are different, aimed at the economic and political union, beyond the members avoid war. The EU have their own flag, consisting of a circle of 12 five-pointed star centered on a blue field.

Throughout this paper I will expose some of the aspects of composition, organization and operation of the union.

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Formation
FORMATIO :
Originally, there were three Communities: - European Coal and Steel Community (ECSC): - European Economic Community (EEC) - European atomic energy community (Euratom) The ECSC was the first to be established, for the ECSC treaty (18 april 1951), that entered into force on 23 july 1952 (was concluded for a period of 50 years, and therefore was terminate in 2002). This treaty is known too as Treaty of Paris. The ECSC was signed for the six original member states: Germany, Belgium, France, Italy, Luxembourg and Netherlands. The EEC, now known as the EC treaty, (although at this moment is called EU), and the Euratom treaty were signed in Rome on 25 march 1957 (entered into force on 1 January 1958). This treaty is known as Treaty of Rome. The signatories were the same six states. After these three treaties, the different states were accessing progressively to the EU, up to forming the present EU. Every state or group of states accessed in different moments and by different treaties of adhesion. In the table of contents that is down appears that different moments and treaties.

TREATY

SIGNED

STATES U.K, Denmark, Ireland Greece Spain, Portugal Austria, Finland, Sweden

IN FORCE 1-january-1973 1-january-1981 1-january-1986 1-january-1995

Treaty of accession of 22-january-1972 Brussels Treaty of accession of 24-may-79 Athens Treaty of accession of 12-jun-85 Lisbon-Madrid Treaty of accession of 24-jun-94 Brussels Treaty of accession of 16-february-2003 Athens Treaty of accession of 25-april-2005 Luxembourg

Poland, Hungary, The Czech Republic, Slovakia, Slovenia, Estonia, Latvia, 01-may-04 Lithuania, Cyprus, Malta Romania, Bulgaria 1-january-2007

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REFERENCE TO T E PROCESS OF EU EXPANSION:

ACCESSION PROCESS: The TEU established the accession process. Any European state which respects the principles of human dignity, freedom, democracy, respect for human rights and fundamental freedoms and the state of right, may apply for admission by petition addressed to the council. Also have to exist by the requesting state a clear intention to participate in the EU. The application request is transmitted to the European Parliament and national parliaments. The request must also directs the Council must act unanimously after consulting the Commission, and after obtaining the assent of the European Parliament. The conditions of admission will be subject to negotiation and agreement between the requesting and the member states, and when they achieve an agreement must be submitted to a vote of all member states and came into force on the date established by the treaty. At the Copenhagen Council of June 1993 was set admission criteria for admission applications: - the country must have achieved stability of institutions - the country must have a functioning market economy - the requesting state must have the capacity to assume the obligations assumed admission

CANDIDATE COUNTRIES AND POTENTIAL CANDIDATES: Currently are candidates for the accession: Turkey, Croatia, Macedonian, Iceland and Montenegrin, and are potential candidate countries: Albanian, Bosnian and Herzegovina and Serbian. The list of candidates and potential candidate countries can modify the Council by a qualified majority on a proposal from the Commission.

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ORGANIZATION: INSTIT TIONS

Following the adoption of the Treaty of Lisbon in 2009, the number of EU institutions is 7: Commission, European Council, Council, European Parliament, Court of Justice, Court of Auditors and the European Central Bank.

THE COMISSION
The commission is intended to give expression to the Community interest. Each member state is at present to one Commissioner. Headquartered in Brussels, and celebrates its meetings in the city, except when Parliament meets in Strasbourg, in which case the committee also meets there. The procedure for election of commissioners has been modified by the Treaty of Lisbon, currently the following: the council, in view of the results of parliamentary elections, by a qualified majority, appoints a president to be voted by parliament. After the council and the elected president appoint the other members of the commission parliament must vote on them as a body. Finally, the Commission is formally appointed by the council. Commissioners are appointed for a period of 5 years. Share with the council the power to represent the union to third countries and international organizations, with the exception of the CFSP (Common Foreign and Security Policy). Run the budget. The High Representative of the Union for Foreign Affairs and Security Policy: appointed by the European Council following the procedure for appointing the commissioners. He is vice chairman of the committee, and is in front of the CFSP.

THE EUROPEAN COUNCIL

The council starts at the Paris summit. Headquarters in Brussels. Its composed of the heads of state or government of member states (27), by its president and President of the Commission, but participate in its work, the High Representative of the Union for Foreign Affairs and Security Policy. This institution will give the Union the impulses required to its development and define the orientations and priorities. It meets at least 2 times a year in Brussels under the Presidency of head of state or government of the state that holds the presidency. With the Lisbon Treaty creates the figure of a permanent European Council president, elected and dismissed by a qualified majority for a period of 2 and half years, renewable only once. For the exercise of its functions, each head of state can count on the presence of a minister, and President of commission with the assistance of a commissioner.

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It acts by consensus, unless the treaties have to do so by a qualified majority or unanimity. It decides by majority vote to adopt questions of procedure and to adopt its rules of procedure. In case of voting, each member may act on behalf of one of the other states.

THE COUNCIL
It represents the member states, and therefore, expresses the interests of each of them. It has shared legislative power with the European Parliament, and political power sharing with the European Council. It composed of one representative of each Member State at ministerial level, with capacity to commit the government of this state and to exercise the right to vote. In any case, there must be two configurations of the Council: Council of General Affairs and External Relations Council. It meets in Brussels, where he has his secretary, but also goes to Luxembourg at its April, June and October. President of Council formations, other than foreign affairs and security, is played by groups 3 predetermined states for a period of 18 months (every 6 months on a rotating state.) The voting system has been modified and will start functioning from 2014. But now the system is as follows: each member state is assigned a certain number of votes according to demographic, political and economic standards.

Germany, France, Italy and the United Kingdom: Spain and Poland: Romania: The Netherlands: Belgium, Czech Republic, Greece, Hungary and Portugal: Austria, Bulgaria and Sweden: Denmark, Ireland, Lithuania, Slovakia and Finland: Cyprus, Estonia, Latvia, Luxembourg and Slovenia: Malta: TOTAL

29 27 14 13 12 10 7 4 3 345

Qualified majority is achieved with 2 conditions - a majority of member states give their approval (14/27) if the Council decides on a proposal from the commission, but there is this proposal requires the affirmative vote of 2 / 3 of the member states (18/27) - a minimum of 255 votes out of 345 total In addition, each state can also request confirmation that the votes in favor represent at least 62% of the total EU population.

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C REPER (the committee of permanent representatives) formed by the permanent representatives member states to be responsible for preparing the council's work and the tasks assigned to it. Each member state has a national delegation in Brussels known as the permanent representation. There are 2 levels: - C REPER I: deputy permanent representatives, who have roles on technical - C REPER II: ambassadors, who study political questions The council approved without discussion questions that have been subject to prelminary i agreement on the working groups and then in the C REPER, and will be discussed in the council subjects of public policy or diplomatic and those which had not reached an agreement C REPER.

EUROPEAN PARLIAMENT
The first elections by direct universal suffrage took place in June 1979. In Parliament, each member state has a number of seats. With the Treaty of Lisbon the maximum number of members would be 751 members, but currently, the legislative 2009-2014 is 754.
Germany France Italy


96 (12.78%) 74 (9.85%) 73 (9.72%) 73 (9.72%) 54 (7.19%) 51 (6.79%) 33 (4.39%) 26 (3.46%) 22 (2.93%) 22 (2.93%) 22 (2.93%)

Unite Kingdom S ain



Poland Romania Netherlands Belgium Czech Re ublic



Greece

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Hungary Portugal S eden Austria Bulgaria Finland Denmark Slovakia Ireland Lithuania Latvia Slovenia Cy rus Estonia Luxembourg Malta
 

22 (2.93%) 22 (2.93%) 20 (2.66%) 19 (2.53%) 18 (2.40%) 13 (1.73%) 13 (1.73%) 13 (1.73%) 12 (1.60%) 12 (1.60%) 9 (1.20%) 8 (1.07%) 6 (0.80%) 6 (0.80%) 6 (0.80%) 6 (0.80%)

The mandate of European Parliamentarians is 5 years. European parliament members are grouped by political affinity and not by national delegations. At this time, there are 7 political groups. To form a political group requires a minimum 25 members from at least one quarter of member states (7).

Group uropean People's Party ( PP)

 

European People's Party (EPP) +1 unaffiliated national party

Progressive Alliance of ocialists Party of European Socialists (PES) and emocrats ( & ) +2 unaffiliated national parties Alliance of Liberals and emocrats
   

European Liberal Democrat and Reform Party (ELDR)

ub-parties

Leader(s) Joseph Daul

Martin Schulz

Guy

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Non-Ins its NI
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The Parliament holds an annual session. It meets without previous notice the second Tuesday in March. Each annual session in turn comprises 12 part-sessions. Headquartered in Strasbourg where he celebrates regular meetings, and in Brussels celebrate the committee meetings, political groups and plenary sessions extraordinary, the general secretary is in Luxembourg. The president is elected for a period of 2 and half years by the Parliament. The table of the parliament is composed of: president, 14 vice-presidents and 5 questors. The table is elected by an absolute majority of votes cast. This institution has budgetary powers with the Council, also legislative. Also performs functions of political control: - the presentation of appeals before the Court of Justice of the EU - the presentation of the motion of censure against the Commission: one-tenth of the Members of Parliament may present to the President a motion of censure against the commission. Must be approved by 2 / 3 of the votes cast, most members of Parliament. - questions and debates Also choice of the Commission, the Defender of the People

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Alliance for Europe of the Nations (AEN Libertas + 5 unaffiliated national parties



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Party of the European Left (PEL Nordic Green Left Alliance (NGLA + 9 unaffiliated national parties
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Alliance of European Conservatives and Reformists (AECR European Christian Political Movement (ECPM

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European Democratic Party (EDP

Verhofstadt

Micha Kami ski

Daniel CohnBendit Rebecca Harms

Lothar Bisky

Nigel Farage Francesco Speroni

COURT OF JUSTICE OF THE EU

Headquarters in Luxembourg. The justice system of the EU is structured as follows: The Court of Justice to which he adds a court that hears in first instance created by the European Single Act, which is called after the Treaty of Lisbon, General Court. With the Treaty of Nice was created Judicial Panels, called the Treaty of Lisbon, Specialized Courts, and the only one that was created has been the Civil Service Tribunal. It has compulsory jurisdiction in the area of exclusive competence. Its decisions are binding on the institutions and member states and individuals. COURT OF JUSTICE: It composed of judges and advocates-general, who are elected among persons who offer full guarantees of independence and have the conditions to be judges or lawyers of recognized reputation in their countries of origin. The members are elected for 6 years renewed by half every 3 years. A judge by Member State (27). The Court is assisted by 8 Advocates-General, which are renewed every 3 years. Also it has a secretary. The court may act: in a full court, in a Grand Chamber of 13 Judges or in Chambers of three or five Judges. The deliberations are secret. Acts in full court: dismissal of the European Ombudsman, termination of a member of the commission, termination of a member of the court of accounts, an issue of exceptional importance, and if so the ECJ said. The great room consists of 13 judges taking part in it the presidents of the chambers. It acts when requested by a member state or an institution which is party to the process. The rooms may be 5 or 3 members, appointed by the Council acting unanimously. The official language of the process is the language of the applicant. GENERAL COURT: This court is responsible for examining at first instance, in particular, to: y direct actions brought by natural or legal persons against acts of the institutions, bodies, offices or agencies of the European y actions brought by the Member States against the Commission; y actions brought by the Member States against the Council relating to acts adopted in the field of State aid, dumping' and acts by which it exercises implementing powers; y actions seeking compensation for damage caused by the institutions of the European Union or their staff; y actions based on contracts made by the European Union which expressly give jurisdiction to the General Court; y actions relating to Community trade marks; y appeals, limited to points of law, against the decisions of the European Union Civil Service Tribunal

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actions brought against decisions of the Community Plant Variety Office or of the European Chemicals Agency. The general court can work: in a full court, in a Grand Chamber of 13 Judges, in rooms and even as a single judge.
y

CIVIL SERVICE TRIBUNAL: Headquarters in Luxembourg. This court consisting of 7 judges, with a renewable term of 6 years. It resolves disputes between the union and its agents.

EUROPEAN COURT OF AUDITORS

Headquartered in Luxembourg, and was created by the Treaty of Brussels. It composed of 27 members appointed by the Council previous consulting Parliament for a renewable period of 6 years. The members elect of them a president for 3 years. It controls the collection and use of EU funds. The parameters for such review are: legality, regularity and well financial management. This institution assists Parliament and the Council in carrying out its function of control of execution of the EU budget.

EUROPEAN CENTRAL BANK

ECB was founded in June 1998 and is located in Frankfurt. This institution has the exclusive authorized the emission of the euro, and also has to consultative roles in everything related to their functions, they can give an opinion. It has legal personality and its own budget. The ECB and the 27 national central banks of member states constitute the European System of Central Banks (ESCB). The ECB and 17 national banks national member states whose currency is the euro, constitute the Eurosystem. The ESCB has as objective maintain price stability. Their organs of government are: - governing council, consisting of the executive committee members of the ECB and the governors of the 17 national central banks of member states whose currency is the euro - executive council: composed of President, Vice President and 4 other members designated by 8 years by the European Council by qualified majority - General Council: this organ will exist while there are countries with a derogation and shall be constituted by the president and vice president of the ECB and the governors of central banks of all member states of the union, although the currency is not the euro.

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EUROPEAN LEGAL SYSTEM

THE CONSTITUTIVE TREATIES:
Treaty of Paris of 18 April 1951 that establishes the ECSC: entered into force on July 23, 1952 with a duration of 50 years, so it expired on July 23, 2002. The treaty was signed by 6 states: France, Italy, Germany, Belgium, Netherlands and Luxembourg. This treaty gives legal personality to the ECSC and legal capacity was needed to carry out the normal exercise of their functions in international relations. Treaty of Rome of March 25, 1957: entered into force on January 1, 1958 for six states that signed it: France, Italy, Germany, Belgium, Netherlands and Luxembourg. This treaty established the EEC and Euratom. The EEC, named after EC and EU at the end. The EEC provides for the creation of a common market for the 6 signatory states, which implied the creation of a customs union based on free circulation of productive factors (labor, goods, services and capital). The EAEC intends to develop nuclear energy.

AMENDING TREATIES:
I. European Single Act: came into force on July 1, 1987. It consists of a preamble and 34 articles in 4 titles. It includes policies for research and technological development and the environment. Act unites the 2 categories of provisions: on the one hand, modifications of the treaty of Rome, and on the other provisions on European cooperation in foreign policy. EU Treaty or the Treaty of Maastricht: It was negotiated by 12 countries (France, Germany, Italy, Netherlands, Belgium, Luxembourg, Greece, Spain, Portugal, UK, Ireland and Denmark) in Maastricht on 7 February 1992 and entered into force on November 1, 1993. With this treaty is established the structure of 3 pillars: 1: the 3 CC.EE and treaties (ECSC, EEC Treaty, EURATOM) 2: common foreign and security policy (CFSP) 3: cooperation in justice and home affairs (CAJI) Also the treaty creates the concept of EU, and changed the name of the EEC by the EC (European Community), the Committee of Regions and the European Ombudsman and the Court of Auditors raises the level of institution.

II.

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It establishes 2 new principles: European citizenship (the right to vote and stand in European and local elections to all citizens regardless of the member state where they reside) and subsidiarity (the EU only acts when objectives can not be will hit by the member states). It established a mandatory timetable for economic and monetary union. III. Treaty of Amsterdam: the treaty is adopted October 2, 1997, entered into force on May 1, 1999. The third pillar of cooperation in justice and home affairs (CAJI) renamed police and judicial cooperation in criminal matters (PJCC). By this treaty introduced into the Treaty establishing the EC, a new title X of employment policy. Treaty of Nice: It signed on February 26, 2001, and entered into force on February 1, 2003. The main objective of the treaty is to prepare the EU s institutional structure to facilitate the accession of 10 new member states that occurs in 2004. It determines key competencies of the General Court (then called the court of first instance). It created the Great Room. Official Journal of the European Communities renamed EU Official Journal. European Constitution: the 27 member states in the European Council of 21 and 22 June 2007 decided to leave the ratification process of the European constitution because it was not ratified in referendums in some member states. Lisbon Treaty: It was signed on December 13, 2007, and although he would enter into force in January 2009, finally did the December 1, 2009. It modified the TEU and the Treaty establishing the European Community to be called Treaty on the Functioning of the EU (TFEU). With this Treaty the pillar structure disappears, having an only one EU, with a basic treaty (TEU) and a treaty of operation (TFEU). The CFSP is maintained inside the EU. It disappears consideration of criminal and judicial cooperation in criminal matters as an extra pillar, and from this treaty shared competence of the union and is called Freedom, justice and security. Union expected to accede to the European Convention on Human Rights. It increases the number of institutions from 5 to 7, provides for the presidency of the European Council with duration of 2 years and half renewable, creates the high representative of the union for foreign affairs and security policy consideration, establishes the principles that inspire the distribution competence: the principle of attribution, subsidiarity and proportionality.

IV.

V.

VI.

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OTHER TREATIES:
I. Accession Treaties: every act of adhesion necessarily modifies the founding treaties, to suit the new situation. Table of extensions that have occurred since the EU constitution appears on page 3 of this work.

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COMMUNITY LAW
The EU law is a proper and specific right of the EU. It is a group of rules regulate the existence, organization, functioning and competences of the Union, both in its internal relations as in its external relations. This right applies not only inside the union, but also towards the outside effects, both affecting the union's relations with member states and with other states and international organizations. It is independent of the national legislation of member states, and that is not integrated into it, but it overlaps (ST Costa / Enel). is a right based on a system of allocating is to say, the union can not regulate any matter, but only those for which competencies attributed to the treaties. Within the EU law we can distinguish between: - original right - derivative right The original right is constituted by the constitutive treaties, amending treaties, acts of accession of new states (Accession treaties), treaties which it is based the European Union (TEU and TFEU), European Convention on Human Rights of the EU December 7, 2000 in its version of 12 December 2007. The derivative right are the rules adopted by the institutions of the union in to achieve the objectives set by the treaties. This derivative right is composed of typical actions (rules expressly provided for in the treaties) and atypical actions (acts of the institutions that do not correspond to any kind of provisions specifically planned in the treaties). Within the typical acts can be distinguished: typical binding acts (regulations, directives and decisions), and typical non-binding acts (recommendation and opinion). Before making specific reference to typical actions, I shall speak short form of the decision-making process, through which the EU institutions adopt such acts. 4 decision-making processes existed before, but with the Lisbon Treaty was reduced to 2:  ordinary legislative procedure: (codecision procedure old) is the together adoption by the European Parliament and the Council on a proposal from the Commission of a Regulation a directive or decision.  special legislative procedure: the adoption of a regulation, directive or decision by the European Parliament with the participation of counsel, or by the Council with the participation of Parliament. except the election of deputy and member of commissions of investigation and the Ombudsman in which the act was adopted by Parliament with the approval of the council, in all other cases where the Treaty imposes the use of special legislative procedure, the act is adopted by the Council after consulting the Parliament or with the approval.

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Typical actions: - Binding: o Regulations: forces all member states and all individuals although there may be separate regimes for certain states or groups. The implementation framework is defined in the abstract and general, without specifying addressees. These forces act as the result sought and the procedure to achieve it. For its adoption, does not require legislative intervention of the member states, nor be published in the official journals of the member states (although it can advertise its existence). Kinds of regulations: y adopted under the ordinary legislative procedure: shall be signed by the President of the European Parliament and the Council President y adopted under the special legislative procedure: will be signed by the president of the institution that has taken them (Parliament and Council) y not adopted under a legislative procedure, but any other decision-making process, and be signed by the president of the institution which adopted Necessarily it published in the OJEU and can optionally be notified to member states for information. It takes effect as a general rule on the date established in themselves, and especially rule 20 days from publication if the regulation did not say anything.
o Directive: forces only about the aim and how to achieve this purpose is determined by each member state in their respective domain. can only be addressed to the states (not individuals), and may affect one, several or all member states. It required for full implementation of its development by the member states, which must transpose its contents to its own law. The transposition should be established within each Directive. Types of directives: y adopted under the ordinary legislative procedure: shall be signed by the President of the European Parliament and the Council President y adopted under the special legislative procedure: shall be signed by the president of the institution that has taken them (Parliament and Council) y not adopted under a legislative procedure, but any other decision-making process, and be signed by the president of the institution which adopted

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The Directive adopted by a legislative procedure (ordinary or special) and those that are addressed to all member states, is published in the OJEU. The other directives are communicated to their addressees. Those published are effective on the date to be determined, but say nothing 20 days after publication. *Differences between regulations and directives: First of all, there is the date on which direct effect comes into operation: a regulation can be directly effective as soon as it comes into force, but a directive cannot be directly effective before the expiry of the time-limit for implementation. A second difference is that member states are not normally either required or permitted to pass national legislation giving effect to the provision of a regulation; in the case of directive there is right to choose the form and methods by which the objective of the directive will be attained.
o Decision: can only affect one or more states or individuals can go to specifically, but not all states or to all individuals. Their addressees will have to specify individually. Kinds of decisions: y adopted under the ordinary legislative procedure: shall be signed by the President of the European Parliament and the Council President y adopted under the special legislative procedure: shall be signed by the president of the institution that has taken them (Parliament and Council) y not adopted under a legislative procedure, but any other decision-making process, and be signed by the president of the institution which adopted The decisions taken by a legislative procedure (ordinary or special) and those which do not specify are published in the OJEU. Other decisions shall be notified to their addressees. The decisions come into force when they are notified, and if the directive is published when indicated, and in defect after 20 days of publication.

Non-binding: o Recommendation: non-binding legal act, through which an institution expresses its own initiative, its judgment on a particular subject. His emission can be preceptive if is provided in the treaties or optional in the rest of cases. No direct legal effect, although it may be indirect when it serves the basis for the adoption of a rule. o Opinion: non-legislative legal act and not binding, through which an institution expresses its own initiative, his opinion on a particular matter upon request of other institutions or organs of the union. His issue is available on request.

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OTHER SOURCES OF THE LAW OF THE UNION: international treaties, concluded by the EU's occupy an intermediate position between the original right and derivative right. an international treaty can never violate the treaties which it is based union (and TFEU TEU), but it prevails over any rule of legislation. General Principles of Law: A group of rules and criteria that are derived from the legal system and act as informants elements of the system, integrators and interpretive gaps. Doctrine and jurisprudence: it is useful to the interpretation of treaties made by european lawyers. The doctrine was not binding.

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SOME ECONOMIC ISSUES

UNION BUDGET:
The EU has its own budget different member states. the budget adopted by Council and Parliament for a special legislative procedure. this budget is maintained by the own resources collected by the EU in relation to activities under their purview. the budget of 1980 was the first one is to be financed entirely from own resources. Principles: - unity and budget accuracy, all incomes and expenses of the EU should be included in the budget - annuity: Linking operations to a financial year - equilibrium: the same amount income and expenses - unit of account: the is the unit of account applicable to the preparation, execution and rendering of accounts - universality: all incomes constitute a common ground that serves to cover all expenses - specialty: each appropriation must have a specific purpose, in accordance with the budget structure - good financial management - transparency: in the development and implementation of the budget, as well as rendering accounts The budget includes: - a summary statement of income and expenses - one section per institution, with the statement of income and expenditures for each (from budget 2007 the number of sections are 10): I: Parliament II: Council and European Council III: Commission IV: Court of Justice V: Court of Auditors VI: Economic and Social Committee VII: Committee of the Regions VIII: European Ombudsman IX: European Data Protection X: European External Action Service The total amount of own resources assigned to the EU can not exceed, for each year of the period 2007-2013 to 1.23% of GNI (Gross National Income) from member states to cover payment appropriations, and 1 , 31% for commitment. Britain has a special regime (British check) which is a refund for the excess contributions from UK's own resources in relation to what that contribution would have been. Member states for collecting the EU's own resources reduce from this colleting an 25%.

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It is the responsibility of Council unanimously on a proposal from the Commission after consulting Parliament, decisions concerning the system of own resources.

STRUCTURAL FUNDS:
The socio-economic disparities between EU regions, has justified the existence of structural funds. These funds are primarily focused on the problem of regional differences, both ancient and underdeveloped areas in areas steeped in industrial reconversion. the purpose of his intervention is to reduce the underdevelopment in these areas. Structural funds are: - European Regional Development Fund (ERDF) - European Social Fund (ESF) ERDF: created in 1975. They are oriented at reinforce the support economic and social cohesion by correcting regional imbalances support the development and structural adjustment of regional economies, including the conversion of declining industrial regions and retarded regions. ESF: created by the Treaty of Rome in 1957. This fund wants to improve employment and job opportunities by promoting a high level of employment and creating more jobs. It helps policies of the member states aimed at achieving full employment and the quality and productivity at work, promote social inclusion and access for disadvantaged people to employment. The funds contribute to achieving the 3 objectives as follows: - Convergence: speed up the convergence of member states and less developed regions. can benefit from this objective regions whose GDP (gross domestic product) per capita is less than 75% of the average of the E-27, and also those areas that could have qualified for the target in the E-15. - Regional competitiveness and employment: pursued outside the less developed regions, increase the competitiveness and attractiveness of regions as well as their level of employment. Regions eligible under this judgment are that met this requirement in 2006 and now will have a GDP higher than 75% of E-15. - European territorial cooperation: he wants to intensify cross border cooperation. It can benefit the regions located along the border separated by a distance of 150km.

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ECONOMIC, SOCIAL AND TERRITORIAL COHESION.

It is an EU policy that wants to promote an overall harmonious development of the union, trying to reduce the differences between development levels of various regions and the delay of the less developed regions. At present, this cohesion is on the one hand, an objective of the EU and the other side the EU policy, competent shared between the Union and member states. With the Treaty of Lisbon, until then, economic and territorial cohesion concoction begins to be called economic, social and territorial cohesion. COHESION FUND: Created in 1994 to all member states as soon as may be able to participate in the final stage of EMU, helping those who will have to overcome more difficulties to get it. The member states of the union with a gross national income (GNI) per capita lower than 90% of the average E-27 and have a program that leads to compliance with the conditions of economic convergence, may have financial contributions the Union. temporarily, may benefit those states that have been benefited in the EU-15. This fund give a financial contribution to projects in the sectors environment: there may be aids from this fund in fields related to sustainable development showing clear benefits for the environment, as energetic efficiency and renewable energies, clean urban transport and public transport trans-European communications, in area of transport infrastructure and priority projects of European interest The countries benefiting from these funds must be committed not to reduce their own investments in transport infrastructure and the environment. The concession of aid is conditional on the existence by the beneficial an effort not to let it accumulate an excessive government deficit.

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FUNCTIONING
COMPETENCES OF THE UNION
The distribution of Competence is defined according to the principle of attribution, the Union acts within the limits of the competences that give member states in the treaties, the rest are competences of the states. The exercise of powers operates on the following principles: subsidiarity (in the areas that is not its exclusive competence, the Union will act only in the sense that the objectives of the proposed action can not be sufficiently achieved by member states) and proportionality (the content and form of Union action shall not exceed of necessary to achieve the objectives of the treaties). Exclusive competence of the union: - customs union - establishment of fair competition rules - monetary policy of member states whose currency is the euro - conservation of marine biological resources under the Common Fisheries Policy - common trade politics Shared competence between the union and member states (the states exercise their competence in so far that the Union has not exercised its competence): - Internal Market - social politics - economic, social and territorial cohesion - research and development - development cooperation and humanitarian aid - agriculture and Fisheries - environment - consumer protection - transport - trans-European infrastructure - energy - freedom, security and justice - common safety concerns in public health The union has the competence to support, coordinate or supplement the actions of member states: - protection and improvement of human health - industry - culture - tourism - education, vocational training, youth and sport - civil protection - administrative cooperation

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EUROPEAN MONETARY SYSTEM.

ECONOMIC POLICY: is based on the coordination of economic policies of member states in the internal market and in the definition of common objectives. It is implemented in accordance with respect for the principle of an open market economy with free competition. Member States coordinate their economic politics within the Council. Currently the guidelines are in place "Europe 2020 ". ECOFIN meeting in special session May 2010, the economy and finance ministers of the 27 states created the "European financial stabilization mechanism , known as "European rescue mechanism". Ireland was the first country to request assistance. One of the main objectives of European economic policy is to promote the correct functioning of the single currency. MONETARY UNION: The monetary union is divided into 3 phases: 1st) 1-July-1990 to 31-December-1993: completing the process of creating market 2nd) 1-Jan-1994 to 31-December-1998: European Monetary Institute 3rd) was initiated in January 1999 was introduced single currency and European Central Bank and the European system of central banks were established. The introduction of the single currency followed the following timetable: - notes and coins were valid as payment of legal tender until December 31, 2001 - 1 January 2002 to February 28, 2002 coexisted national currencies with the euro as a means of payment of legal tender - from March 1, 2002: The national currency lost its legal tender To access the European Monetary Union countries must meet certain requirements: - Inflation: can not exceed 1.5 points above the average of the 3 countries with less inflation - interest rate, not exceeding 2 points on the average interest rate at / p of the 3 countries with lowest inflation - government deficit: not exceed 3 points over the gross domestic product (GDP) - Public debt: not exceed 60% of GDP, or at least record clearly decreasing trend - Exchange rate of national currency will have been, at least the previous 2 years within the fluctuation band of the European Monetary System In this third phase of the single currency, the TEU provides 2 exceptions for which Denmark, Sweden and the UK can opt out of that phase. Member states are euro coin: France, Germany, Italy, Belgium, Holland, Luxembourg, Ireland, Spain, Portugal, Austria, Finland, Greece, Slovenia, Malta, Cyprus, Estonia and Slovakia, also those countries were using national currencies some of these states.

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Basic liberties
FREE MOVEMENT OF GOODS: Objective culminated by the single internal market. The TFEU defines this freedom saying that the EU is based on a customs union which shall cover all exchange of goods, and that constitute a prohibition between Member States of customs duties on imports and exports, and any charges having an effect equivalent, and the adoption of a common customs duty in their relations with third countries. The goods means any product estimable in money and capable of commercial transactions, excluding arms, ammunition and explosives, and agricultural products submitted to the CAP regime. Product of the union and therefore the beneficiary of the free movement of goods are the products originating and from third countries that are in free circulation in member states. The customs territory includes the territory of member states, although there are special schemes for overseas territories and outermost regions. FREE MOVEMENT OF WORKERS: Implies the movement and residence of a national of a Member State to another Member State in order of carry out work in any sector of economic activity. It involves the elimination of any discrimination based on nationality between workers of member states in respect of employment, remuneration and other conditions. The scope covers all economic activities exercise in a salaried, with the only exception of the work of the public. This implies freedom to accept offers effective working, to move freely for this purpose in the territory of member states, residing in a member state in order of work there ... The community worker benefits of the same social and tax advantages as national workers. Employee's family benefit of the social benefits and equal treatment in access to general education and vocational training. FREE ESTABLISHMENT AND SUPPLY OF SERVICES: freedom of establishment are material installation, stable and permanent of a natural or legal person, national of a Member State in the territory of another Member State, to exercise a work as self of economic nature. The provision of services is the exercise of self-employed economic activities from an establishment situated in the territory of a member state and destined to a beneficiary residing the territory of another member state. The beneficiaries are individual persons and societies, with the exception of not having a view of profit. FREE MOVEMENT OF CAPITAL: The beneficiaries of this freedom are the residents of member states and which operates on the principle of equal treatment. Thy are not restrictions on capital movements and payments between member states and between these and third countries.

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CONCLUSION
The EU is currently the Union of 27 states that have decided to pool under the direction of supranational institutions of its policy actions. What this is intended to reinforce their positions, both individual and joint in the world economy, in that great powers like the U.S., Japan and China threaten to leave Europe in secondary positions.

But the Union of 27 countries has not always been so, since it is the result of a long process in which from 6 original states that created so far has been great changes in its organization and functioning. One of the key points to understand the EU as we currently do is the decision taken by member states to establish a monetary union, in that one side would come to a common currency and establish the other hand economic policy measures and duty joint. In recent years, the Lisbon Treaty has made important changes to the EU, one of that I consider most important, of giving the EU legal personality, which not until then had, with EU a concept created by the Treaty Maastricht and managed by member states, but could not as an organization with third states or to international organizations. In addition it also highlights that the Lisbon Treaty, the EC disappears and is replaced by the EU.

In my opinion, the EU is a way of get that European states may be stronger economically ahead of other major economic powers, to be together, share some of their economic policies, macroeconomic tariff than it would be those states individually.

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