EU institutions and bodies in brief

• European Parliament

• European Council

• Council of the European Union

• European Commission

• Court of Justice of the European Union (CJEU)

• European Central Bank (ECB)

• European Court of Auditors (ECA)

• European External Action Service (EEAS)

• European Economic and Social Committee (EESC)

• European Committee of the Regions (CoR)

• European Investment Bank (EIB)

• European Ombudsman

• European Data Protection Supervisor (EDPS)

• Interinstitutional bodies

A unique institutional set-up

In the EU's unique institutional set-up:

• the EU's broad priorities are set by the European Council, which brings together national and EU-
level leaders

• directly elected MEPs represent European citizens in the European Parliament

• the interests of the EU as a whole are promoted by the European Commission, whose members
are appointed by national governments

• governments defend their own country's national interests in the Council of the European Union.

Setting the agenda

The European Council sets the EU's overall political direction – but has no powers to pass laws. Led
by its President - currently Donald Tusk - and comprising national heads of state or government and
the President of the Commission, it meets for a few days at a time at least twice every 6 months.

Law-making

There are 3 main institutions involved in EU legislation:

• the European Parliament, which represents the EU’s citizens and is directly elected by them;
• the Council of the European Union, which represents the governments of the individual member
countries. The Presidency of the Council is shared by the member states on a rotating basis.

• the European Commission, which represents the interests of the Union as a whole.

Together, these three institutions produce through the "Ordinary Legislative Procedure" (ex "co-
decision") the policies and laws that apply throughout the EU. In principle, the Commission proposes
new laws, and the Parliament and Council adopt them. The Commission and the member countries
then implement them, and the Commission ensures that the laws are properly applied and
implemented.

Decision-making in the EU - more on EU law-making procedures

List of presidencies of the Council of the EU 2014-2020

Other EU institutions and bodies

Two other institutions play vital roles:

• the Court of Justice of the EU upholds the rule of European law

• the Court of Auditors checks the financing of the EU's activities.

The powers and responsibilities of all of these institutions are laid down in the Treaties, which are
the foundation of everything the EU does. They also lay down the rules and procedures that the EU
institutions must follow. The Treaties are agreed by the presidents and/or prime ministers of all the
EU countries, and ratified by their parliaments.

The EU has a number of other institutions and interinstitutional bodies that play specialised roles:

• the European Central Bank is responsible for European monetary policy

• the European External Action Service (EEAS) assists the High Representative of the Union for
Foreign Affairs and Security Policy, currently Federica Mogherini. She chairs the Foreign Affairs
Council and conducts the common foreign and security policy, also ensuring the consistency and
coordination of the EU's external action.

• the European Economic and Social Committee represents civil society, employers and employees

• the European Committee of the Regions represents regional and local authorities

• the European Investment Bank finances EU investment projects and helps small businesses
through the European Investment Fund

• the European Ombudsman investigates complaints about maladministration by EU institutions and

bodies

• the European Data Protection Supervisor safeguards the privacy of people’s personal data

• the Publications Office publishes information about the EU

• the European Personnel Selection Office recruits staff for the EU institutions and other bodies

• the European School of Administration provides training in specific areas for members of EU staff
• a host of specialised agencies and decentralised bodies handle a range of technical, scientific and
management tasks

Trade and business of EU with Asian countries

From the 2nd century AD until the end of the 14th century, an ancient network of trade routes
stretched from Europe in the West to the furthest tip of Asia in the East. This network, named after
the lucrative silk that travelled along it, carried more than just goods. It harboured people with ideas
and innovations that led the East to dominate global trade. Europe was essentially a fringe player.

Then two significant sea voyages changed the game. Vasco da Gama discovered the sea route to
India and Christopher Columbus found a new world in the West. From that point on, Europe was
transformed from a consumer on the margins to an economic powerhouse.

Today, we are living through another period of dramatic economic change. Asia now returns to join
Europe at the heart of the global economy. The European Union's total trade in goods with Asia is
worth €1.4 trillion. From machinery to food to chemicals, Asia is an important market for EU
products, as is the EU for imports from Asian countries. It is no surprise that as a mood of
protectionism takes hold in some parts of the world, the EU is once again looking increasingly to its
Asian partners.

Through its trade policy, the EU is building strategic alliances with partners around the world.
Negotiations to liberalise trade with partners outside the European bloc are a cornerstone of the EU
strategy. Our negotiators have a busy agenda: in Asia alone, Europe has recently reached
agreements with Vietnam, Japan and Singapore, adding to the existing agreement with South Korea.

The European Union's total trade in goods with Asia is worth €1.4 trillion

These agreements work. EU exports to South Korea have increased by 59% or €16 billion since the
application of the free trade agreement (FTA) in 2011. The agreement addressed non-tariff barriers
to trade across sectors including cars, medicines and electronics.

The benefits are not just for big industry, however. Small and medium-sized enterprises are the
backbone of the EU economy. They represent 99% of businesses in the EU and have created 85% of
new jobs in the past five years. Companies like Col D'Orcia, a wine producer in Italy, and Chokeberry
Poland, a small agricultural producer, have also seized new opportunities in the Korean market.

The EU stands to gain even more from the new agreement with Japan. Not only is it a major world
economy, the Japanese share our beliefs in open, fair and well-regulated markets, as well as
similarities in standards and values. Japan and the EU already cooperate on other trade issues such
as tackling steel overcapacity in China. The agreement broadens Japan-EU cooperation and sends a
strong message to the rest of the world.

Together, the EU and Japanese economies account for almost a quarter of global GDP ‒ this will be
one of the largest free trade areas that has ever existed. Partners are coming together to stand up
for open global trade and fight protectionism. The agreement is now with the European Parliament
and EU governments for approval. The hope is that this will happen swiftly so that EU consumers,
workers and businesses can start to reap the benefits of this deal as soon as possible.
In Southeast Asia, the EU has reached agreements with Vietnam and Singapore, with talks
continuing with partners in Indonesia and soon in Malaysia. All of these potential FTAs are seen as
building blocks that pave the way to broader integration. The Association of Southeast Asian Nations
(ASEAN) is a key economic pillar of the region. The EU is ASEAN's second largest trading partner after
China, and ASEAN is the third largest to the EU. Europe is also the largest investor in the region, with
around €19 billion received by ASEAN nations annually. It is clear the EU wants to develop and build
on this relationship.

Using EU trade policy to ensure the fairest possible environment for our exporters is critical

This new network of agreements shows the EU's continuing belief in the benefits of open markets.
But that does not mean Europe is naïve. There are challenges Europeans face with some Asian
nations, the most obvious being the bloc’s relationship with China. They are an important partner,
but the relationship is often strained by disagreements over what open, free and fair global trade
means in practice. From the EU’s perspective, China must do more to address international concerns
on level-playing field issues such as industrial subsidies; state owned enterprises; or respecting
intellectual property rights. Addressing these issues, which are at the root of the current
international crisis on trade policy, is vital to build mutual trust and a healthy environment for global
trade.

Using EU trade policy to ensure the fairest possible environment for our exporters is critical, but
trade’s impact does not end there. Across Asia, the EU is using trade as a buffer to help developing
countries integrate into world markets and promote the protection of labour and human rights,
alongside safeguarding the environment. This is achieved by giving preferential access to the EU's
market under the Generalised System of Preferences ‒ access that is conditioned on respect of key
international standards.

All of these efforts fit into the broader picture of the EU's leading position in global trade.
Agreements with Asia are one part of the network it is building. Europe has recently added Canada
and Mexico to the list of partners. Progress has also been made with Mercosur countries, and
Europe hopes to start trade negotiations with Australia and New Zealand soon. The EU is a
consistent defender of the network that matters most, the World Trade Organisation, which requires
the support of our partners in Asia and around the world.

Partnerships in Asia and elsewhere will be instrumental to the EU in keeping the world open and
ensuring that generations to come can continue to benefit from free, fair and well-regulated global
trade.

________________________________________

IMAGE CREDIT: lwtt93/ Flickr