Various EU Bodies

Cooperation between the EU’s institutions

Article 13 of the Treaty on European Union

Article 13 of the Treaty on European Union (EU) lists the EU’s institutions and states that they must practice ‘mutual sincere cooperation’.

KEY POINTS

The EU’s various institutions must aim to:
promote the EU’s values (respect for human dignity, liberty, democracy, equality, the rule of law and human rights, including the rights of persons belonging to minorities);
advance the EU’s objectives (the main ones being promoting peace, the EU’s values and the well-being of its citizens);
serve the interests of the EU, the general public and EU countries;
ensure the consistency, effectiveness and continuity of EU policies and activities.

The institutions are:
the European Parliament;
the European Council;
the Council;
the European Commission;
the Court of Justice of the European Union;
the European Central Bank (ECB);
the Court of Auditors.

Each institution operates within its own treaty powers, procedures and objectives and must cooperate with the others.

The Parliament, Council and Commission cooperate closely among themselves and, under Article 295 of the Treaty on the Functioning of the European Union (TFEU), may conclude interinstitutional agreements. Examples of such agreements include:
better law-making;
rules of conduct for European lobbyists and civil servants;
budget discipline and sound financial management.

How the EU institutions work together may also be determined by other treaty articles such as the following:
Article 284 of the TFEU, which governs relations between the Council and the ECB. Under this article, the ECB president must be invited to participate in Council meetings when the bank’s objectives and tasks are on the agenda. The ECB’s annual report must be sent to the Parliament, the Council and the Commission, as well as to the European Council.
Article 134 of the TFEU, according to which EU countries, the Commission and the ECB work together in the context of the Economic and Financial Committee.

However, how the institutions work and interact is also determined by:
practices that have evolved over the years;
the institutions’ respective rules of procedure; and
on a case-by-case basis, as in the case of an agreement between the ECB and the European Parliament on accountability and transparency in regard to European banking supervision. The conclusion of this agreement was specifically written into Article 20(8) of Regulation (EU) No 1024/2013 on the ECB’s tasks relating to prudential supervision of credit institutions.

DOCUMENTS

Article 13 of the Treaty on European Union (OJ C 202, 7.6.2016, p. 22)

Article 295 of the Treaty on the Functioning of the European Union (OJ C 202, 7.6.2016, p. 175)

Article 134 of the Treaty on the Functioning of the European Union (OJ C 202, 7.6.2016, pp. 105–106)

Cooperation between the European Parliament and the European Commission

Framework agreement on relations between the European Parliament and the European Commission

Agreement amending point 4 of the Framework agreement on relations between the European Parliament and the European Commission

It aims to facilitate and organise cooperation between the European Parliament and the European Commission. The agreement defines the procedures for their collaboration.

General

This framework agreement contains a number of rules relating to the organisation of work between the 2 institutions, in particular:

the political responsibility of the Commission;
establishing regular and effective political dialogue;
implementing legislative procedures.

Political responsibility of the Commission

There is a strong political connection between the composition of the Commission and the Parliament:

The President and the other Members of the Commission (commissioners) must be approved by the European Parliament.
The Parliament is consulted on the appointment of replacements for commissioners who resign and is also given advance notice of any planned redistribution of responsibilities within the Commission.

The Parliament may make a request to the President of the Commission for the resignation of a Member of the Commission. The President must then consider the request and provide an explanation in the case of a refusal.

Members of the Commission may stand as candidates in European Parliament elections. In such cases, the agreement specifies the safeguards to ensure proper separation of their duties as commissioners and their campaigning activity.

In the light of the upcoming elections to the European Parliament, the agreement between the European Parliament and the European Commission amending point 4 of the Framework Agreement on relations between the European Parliament and the European Commission to allow Members of the Commission to stand for election to the European Parliament without taking a leave of absence for the duration of the campaign.

Political dialogue

The agreement aims to establish effective cooperation between the Commission and the Parliament. This is achieved by:

organising regular meetings between representatives of the two institutions, such as between the College of Commissioners and the chairs of the parliamentary committees;
the agreement of both parties to examine carefully any request made by either institution;
a commitment from the Commission to guarantee the Parliament equality of access with the Council regarding meetings and documents relating to legislative and budgetary procedures;
a requirement for the Parliament to be fully informed during the negotiation and conclusion of international agreements to which the EU is a party;
specific rules for cooperation on:
the application of the principles of subsidiarity and proportionality;
cooperation with national parliaments;
the work of groups of national experts with the Commission.

Cooperation in legislative procedures

The agreement specifies the organisation of the work between the Parliament and the Commission for implementing legislative procedures:

the Commission must present its annual work programme to the Parliament;
during the procedure for adopting acts, the agreement then guarantees several commitments on the part of the 2 institutions, including:
the timetabling by the Parliament of reports and of opinions on proposals for legislation, and
the careful examination by the Commission of any amendments adopted by Parliament;
Members of the Commission are present throughout the Parliament’s plenary sessions. One of their tasks includes responding to questions from Members of Parliament;
Members of the Commission may also be heard before the Parliament at their request.

DOCUMENTS

Framework Agreement on relations between the European Parliament and the European Commission (OJ L 304, 20.11.2010, pp. 47-62)

Agreement between the European Parliament and the European Commission amending point 4 of the Framework Agreement on relations between the European Parliament and the European Commission (OJ L 45, 17.2.2018, p. 46)

The EU’s advisory bodies

The EU has 7 institutions responsible for different areas of lawmaking and policymaking.

In addition it has 2 advisory bodies representing different parts of EU society which give opinions on policies and legislation but which are not legally binding.

1.The European Economic and Social Committee (EESC) Role

The EESC has 3 main responsibilities:

to advise the European Parliament, the Council of the EU and the European Commission,
to promote the development of an EU that is more in touch with EU citizens’ opinions by giving workers’ and employers’ organisations and other interest groups a voice in policy discussions,
to ensure a continuous dialogue between the EU and civil society organisations and to support their role and the role of broader participation in democracy.

Composition

The EESC is composed of 350 members. The distribution of seats per EU country is decided by the Council.
Members represent workers’ and employers’ organisations, as well as interest groups from civil society, particularly in socio-economic, civic, professional, and cultural areas.
Members are nominated by their national governments and appointed by the Council for a 5-year renewable term.

Action

The EESC has 9 plenary sessions per year.
The EESC is consulted by the European Parliament, the Council or the Commission on a variety of subjects.
It also issues opinions on its own initiative.

2.The Committee of the Regions (CoR)

Role

The CoR gives regions and cities a formal say in the EU decision-making process, and reflects the positions and needs of regional and local authorities in the opinions it submits to the EU institutions.

Composition

The CoR is composed of 350 members. The distribution of seats per EU country is decided by the Council.
Members are elected representatives of local and regional authorities.
. Members are nominated by their national governments. and appointed by the Council for a 5-year renewable term.

Action

The CoR has 6 plenary sessions per year.

The CoR is consulted on a compulsory basis by the Commission, the Council or the European Parliament on legislative proposals which concern policy areas such as:

health,
education,
employment,
social policy,
transport,
energy.

The CoR may also be consulted by the European Parliament, the Council or the Commission on other issues outside these areas. It may also issue opinions on its own initiative.

Once the CoR receives a proposal for legislation it issues an opinion which is sent to the relevant institutions.

The CoR may bring 2 types of action before the Court of Justice of the EU:

an action to annul a legal act which breaches the principle of subsidiarity, where the legal act concerns a policy area on which the CoR must be consulted (Article 8 of Protocol 2 of the Treaty on European Union) —;
an action to ensure that the EU institutions respect its right to be consulted. (Article 263 of the Treaty on the Functioning of the EU).

European Investment Bank

Protocol (No 5) on the statutes of the European Investment Bank (EIB) annexed to the Treaty on European Union and the Treaty on the Functioning of the EU

It contains the operating rules of the European Investment Bank (EIB), the EU’s financing institution.
It lays down the EIB’s composition and tasks.
The EIB has legal personality, financial autonomy and its own decision-making structure.

Scope

Founded to assist the balanced and steady development of the EU, the EIB provides finance and expertise for sound and sustainable investment projects in Europe and beyond. Owned by the 28 EU countries (1), the projects it supports contribute to furthering EU policy objectives.

Base, members and capital

The EIB is based in Luxembourg. The EU countries each subscribe to its capital, which stood at €243 billion on 1 July 2015. Each country contributes according to its economic weight (expressed in gross domestic product) at the time when it joined the EU. When a new country joins the EU, the capital increases. The EIB’s Board of Governors may also decide unanimously to increase the subscribed capital.

Composition

Board of Governors

The Board of Governors consists of ministers designated by the EU countries (usually finance ministers). It is the EIB’s main decision-making body. It lays down guidelines for the Bank and takes the most important decisions, such as:

credit policy guidelines;
appointment and remuneration of members of the other governing bodies;
approval of the annual accounts;
authorisation, on a country-by-country basis, for the Bank to operate outside the EU;
capital increases.

Board of Directors

The Board of Directors consists of 29 directors, with one director nominated by each EU country and one by the European Commission. In addition, there are 19 alternate directors. In order to broaden the Board of Directors’ professional expertise in certain areas, the board has made use of the possibility of co-opting 6 experts who participate in the board meetings without voting rights.

The Board of Directors approves every decision on granting finance and on the borrowing programme. It reviews borrowing and treasury operations and exerts control over the activities of the Management Committee.

Management Committee

The Management Committee is responsible for the day-to-day management of the Bank under the authority of the EIB president. It has a president and 8 vice-presidents. Traditionally, 1 member is nominated by each of the largest EU countries in terms of their shareholding (France, Germany, Italy and the United Kingdom (1)), with the remaining 5 being nominated by the other countries, divided into 5 country-groups. The Management Committee members are solely responsible to the Bank and are independent in the performance of their duties.

Audit Committee

The Audit Committee is an independent body, directly answerable to the Board of Governors. It is responsible for verifying that the operations of the Bank have been conducted and its books kept in a proper manner. The Audit Committee is also responsible for auditing the Bank’s accounts. It verifies that the Bank’s activities conform to best banking practice applicable to it. The Audit Committee is composed of 6 members. In addition, a maximum of 3 observers may be appointed to assist it.

Objectives and operations

The EIB’s core activity is to support sound investments. It contributes through ‘lending, blending and advising’, i.e. providing finance, complementing EU finance and giving advice on programme or project design. The mission of the EIB is set out in Article 309 of the Treaty on the Functioning of the European Union.

The EIB provides funding for large, often transnational projects (including global climate action) or for economic activities that do not have ready access to finance (e.g. in less-developed regions and SMEs) in the territories of EU countries. However, by decision of the Board of Governors, the Bank may also grant financing for investment to be carried out outside the EU.

Principles to be observed in granting loans

Funds must be used as rationally as possible in the EU’s interests.

Neither the EIB nor EU countries may impose conditions requiring loans to be spent within a specified EU country. The EIB may not finance any project opposed by the country in whose territory it is to be carried out.

Loan applications

Applications for loans or guarantees may be made to the EIB either through the Commission or through the EU country in whose territory the project is to be carried out. A business may also apply directly for a loan or guarantee. In each case, the Commission and the EU country concerned are asked for an opinion.

The Management Committee checks the compliance of applications for loans or guarantees. Projects and programmes must be viable in 4 areas: economic, technical, environmental and financial. All projects are carefully assessed and monitored until completion.

Operations on the capital markets

The EIB is allowed to carry out operations on the capital markets. It may:

borrow funds on the capital markets needed for the performance of its tasks;
buy and sell securities on the financial markets;
invest on the money markets.
Subsidiaries

The EIB may establish subsidiaries or other entities. These must have legal personality and financial autonomy. The Board of Governors has to unanimously adopt these organisations’ statutes.

BACKGROUND

Created in 1958, the EIB is the EU’s bank for long-term loans. In 1994, the EIF was set up to support the development of high-growth small and medium-sized enterprises (SMEs) and/or those active in new technologies. The EIB is the majority shareholder and operator of the European Investment Fund (EIF). In 2000, the EIB Group was created, consisting of the EIB and the EIF. Within the Group, the EIB grants medium and long-term bank loans, while the EIF specialises in venture-capital operations and providing guarantees for SMEs.

The EIB and EIF will play an instrumental role in the investment plan for Europe with the setting up of the European Fund for Strategic Investments in the 2015-2017 period.

DOCUMENTS

Protocol (No 5) on the statutes of the European Investment Bank (EIB) annexed to the Treaty on European Union and the Treaty on the Functioning of the EU (OJ C 202, 7.6.2016, pp. 251–264)

The EU’s spending watchdog: how the European Court of Auditors operates

The European Court of Auditors audits European Union (EU) revenue and expenditure. It ensures the EU’s accountability to the taxpayer. Article 287 of the Treaty on the Functioning of the European Union defines the role of the Court. The Court draws up its own Rules of Procedure which must then be approved by the Council.

They govern the internal workings of the European Court of Auditors. The Rules cover aspects such as:

—the organisation of the Court (appointments, terms of office, the Court’s duties, election of the President);
—operational procedures (the Court and Chambers meetings; decisions by the Court, Chambers and Committees; audits and preparation of reports, opinions, observations and statements of assurance).

Composition and structure

—The Court is a collegial body, i.e. its Members are jointly responsible for decisions and actions taken. It comprises 28 Members — one from each EU country. Members are appointed for 6 years (renewable). To be appointed, Members must belong or have belonged to an external audit body in their own EU country or be especially qualified for this office. They carry out their duties at the Court of Auditors entirely independently.
—Members elect one of their number as President for 3 years (renewable). His/her duties include:
—calling and chairing Court meetings;
—ensuring the Court’s decisions are implemented;
—ensuring that the Court’s departments, including protocol and visits, communication, legal matters and internal audit, operate properly and that its various activities are managed soundly;
—appointing an agent to represent the Court in litigation;
—representing the Court in its external relations and in its relations with the other European institutions.
The Court has a Secretary-General, who is responsible for the day-to-day running of the Court’s Secretariat, as well as for administration, finance and support, human resources, information technology and translation.

The Court also comprises Chambers and Committees. Chambers adopt opinions, special reports and specific annual reports. They also prepare the annual reports on the EU budget and the European Development Funds, which are then adopted by the Court. Committees (e.g. the Administrative Committee and the Audit Committee) deal with administrative matters and decisions on issues related to communication and strategy.

Tasks of the Court

The Court audits the legality and regularity of the revenue and expenditure of the EU and its bodies as well as sound financial management of the EU budget. Its role as the EU’s independent external auditor is to check that EU funds are correctly accounted for, are raised and spent in accordance with the relevant rules and regulations and have achieved value for money.

Its audits are carried out with the aim of both improving financial management, as well as making European citizens aware of how public funds are used.

Audits

These are

—based on records and, if necessary, performed on the spot in the other European institutions;
—performed on the premises of any organisation which manages revenue or expenditure on behalf of the EU;
—performed in the EU countries and in countries across the world, including on the premises of any natural or legal person in receipt of payments from the EU budget.

In its role as the EU’s external auditor, the Court cooperates with the national authorities and the European institutions. Moreover, it is able to request any information required to successfully complete its task from the EU institutions and bodies, organisations in receipt of payments from the European budget or from national audit institutions.

Work programmes

Each year, the Court adopts a work programme listing its priorities in terms of audit tasks. The programme is published, and presented to the Committee on Budgetary Control of the European Parliament by the Court’s President

Annual discharge procedure

The Court of Auditors has no judicial powers and therefore no power to impose sanctions. After the close of each financial year, it draws up an annual report to be published in the Official Journal. This report concerns the management of the EU budget and the European Development Funds, by the competent institutions. It is a fundamental part of the European Parliament’s decision-making process regarding the granting of the budget discharge to the Commission.

The Court of Auditors also provides the Council and the Parliament with a statement of assurance concerning the reliability of the accounts and attesting that the budget has been used well, in accordance with the rules and regulations. In addition, the Court may also, at any time, submit observations, particularly in the form of special reports, on specific questions and deliver opinions or other review-based outputs at the request of one of the other European institutions or at its own initiative

The Court decides in formal session, by the majority of its members, on the adoption of the annual report. Its meetings are not public, unless it decides otherwise. It may also decide, on a case-by-case basis, to adopt decisions by written procedure.

The Court of Auditors reports on irregularities in the use of EU funds and refers any cases of suspected fraud detected during its audits to the European Anti-Fraud Office (OLAF).

BACKGROUND

The Court of Auditors was established in 1977 and since 1992 has been a fully-fledged EU institution. It is based in Luxembourg.

For more information, see:

—Rules of Procedure on the European Court of Auditors website
—Decision No 26-2010 laying down the rules for implementing the Rules of Procedure of the Court of Auditors
—Budget on the European Commission’s website.

ACT

Rules of Procedure of the Court of Auditors of the European Union

Cooperation between the EU’s institutions

Article 13 of the Treaty on European Union

Article 13 of the Treaty on European Union (EU) lists the EU’s institutions and states that they must practice ‘mutual sincere cooperation’.

KEY POINTS

Each institution operates within its own treaty powers, procedures and objectives and must cooperate with the others.
The Parliament, Council and Commission cooperate closely among themselves and, under Article 295 of the Treaty on the Functioning of the European Union (TFEU), may conclude interinstitutional agreements.

Examples of such agreements include:
better law-making;
rules of conduct for European lobbyists and civil servants;
budget discipline and sound financial management.

DOCUMENTS

Article 13 of the Treaty on European Union (OJ C 202, 7.6.2016, p. 22)

Article 295 of the Treaty on the Functioning of the European Union (OJ C 202, 7.6.2016, p. 175)

Article 134 of the Treaty on the Functioning of the European Union (OJ C 202, 7.6.2016, pp. 105–106)

Cooperation between the European Parliament and the European Commission

Framework agreement on relations between the European Parliament and the European Commission

Agreement amending point 4 of the Framework agreement on relations between the European Parliament and the European Commission

It aims to facilitate and organise cooperation between the European Parliament and the European Commission. The agreement defines the procedures for their collaboration.

KEY POINTS

This framework agreement contains a number of rules relating to the organisation of work between the 2 institutions, in particular:

the political responsibility of the Commission;
establishing regular and effective political dialogue;
implementing legislative procedures.
Political responsibility of the Commission

There is a strong political connection between the composition of the Commission and the Parliament:

The President and the other Members of the Commission (commissioners) must be approved by the European Parliament.

The Parliament is consulted on the appointment of replacements for commissioners who resign and is also given advance notice of any planned redistribution of responsibilities within the Commission.
The Parliament may make a request to the President of the Commission for the resignation of a Member of the Commission. The President must then consider the request and provide an explanation in the case of a refusal.

Political dialogue

The agreement aims to establish effective cooperation between the Commission and the Parliament. This is achieved by:

Cooperation in legislative procedures

The agreement specifies the organisation of the work between the Parliament and the Commission for implementing legislative procedures:

DOCUMENTS

Framework Agreement on relations between the European Parliament and the European Commission (OJ L 304, 20.11.2010, pp. 47-62)