EU INSTITUTIONS 2ND YEAR TRANSLATION STUDIES AUTUMN TERM, 2010-2011 ROXANA-CRISTINA PETCU, PhD LECTURE II THE TREATIES

The Treaties are the primary source of European law and the legal basis of the common policies. They are instruments of progress of the European integration. 1. THE TREATY OF PARIS Signed in Paris, on 15 April 1951, by France, Italy, Germany, Belgium, Luxembourg, the Netherlands Established the European Coal and Steel Community Its main objective was to eliminate the various barriers to trade to create a common market in which coal and steel products from the Member States could move freely in order to meet the need of all Community inhabitants, without discrimination on grounds of nationality capital and workers in both sectors should circulate freely

These rules were to be implemented by Community institutions which would exercise the powers previously held by the states in those sectors and whose decisions were to be binding on all Member States: a High Authority a special Council of Ministers a Common or European Assembly a European Court of Justice

The ECSC was the first international organisation to be based on supranational principles and was, through the establishment of a common market for coal and steel, intended to expand the economies, increase employment, and raise the standard of living within the Community. The market was also intended to progressively rationalise the distribution of high level production whilst ensuring stability and employment. The common market for coal was opened on 10 February 1953, and for steel on 1 May 1953. On 11 August 1952, the United States was the first country (aside from ECSC members) to recognise the Community and stated it would now deal with the ECSC on coal and steel matters, establishing its delegation in Brussels. President Monnet responded by choosing Washington D.C. as the site of the ECSC's first external presence. The headline of the delegation's first bulletin read "Towards a Federal Government of Europe". The Treaty of Paris was frequently amended as the EC and EU evolved and expanded. With the treaty due to expire in 2002, debate began at the beginning of the 1990s on what to do with it. It was eventually decided that it should be left to expire. The areas covered by the ECSC's treaty were transferred to the Treaty of Rome and the financial loose ends and the ECSC research fund were dealt with via a protocol of the Treaty of Nice. The treaty finally expired on 23 July 2002.[2] That day, the ECSC flag was lowered for the final time outside the European Commission and replaced with the EU flag. Institutions Besides the 4 institutions mentioned already, a Consultative Committee was established alongside the High Authority, as a fifth institution representing civil society. This was the first international representation of consumers in history. These institutions were merged in 1967 with those of the European Community, except for the Committee which continued to be independent until the expiration of the Treaty of Paris in 2002. The Treaty stated that the location of the institutions would be decided by common accord of the members, yet the issue was hotly contested. As a temporary compromise, the institutions were provisionally located in the City of Luxembourg, despite the Assembly being based in Strasbourg.

The High Authority - (the predecessor to the European Commission) was nine-member executive body which governed the community. France, Germany and Italy appointed two members each to the Authority and the three smaller members appointed one each. These eight members then themselves appointed a ninth person to be President of the High Authority. Despite being appointed by agreement of national governments acting together, the members were to pledge not to represent their national interest, but rather took a oath to defend the general interests of the Community as a whole. Their independence was aided by members being barred from having any occupation outside the Authority or having any business interests (paid or unpaid) and for three years after they left office. To further ensure impartiality, one third of the membership was to be renewed every two years. (article 10).The Authority's principle innovation was its supranational character. It had a broad area of competence to ensure the objectives of the treaty were met and that the common market functioned smoothly. The High Authority could issue three types of legal instruments: Decisions, which were entirely binding laws; Recommendations, which had binding aims but the methods were left to member states; and Opinions, which had no legal force. The Common Assembly (which later became the European Parliament) was composed of 78 representatives and exercised supervisory powers over the executive High Authority. The Common Assembly representatives were to be national MPs delegated each year by their Parliaments to the Assembly, or directly elected 'by universal suffrage' (article 21), but there were no actual elections until 1979. However, to emphasise that the chamber was not a traditional international organisation composed of representatives of national governments, the Treaty of Paris used the term "representatives of the peoples". The Assembly was not originally specified in the Schuman Plan because it was hoped the Community would use the institutions (Assembly, Court) of the Council of Europe. When this became impossible because of British objections, separate institutions had to be created. The Assembly was intended as a democratic counter-weight and check to the High Authority, to advise but also to have power to sack the Authority for incompetence, injustice, corruption or fraud. The first President (akin to a Speaker) was Paul-Henri Spaak. The Special Council of Ministers (equivalent to the current Council of the European Union) was composed of representatives of national governments. The Presidency was held by each state for a period of three months, rotating between them in alphabetical order. One of its key aspects was the harmonisation of the work of the High Authority and that of national governments, which were still responsible for the state's general economic policies. The Council was also required to issue opinions on certain areas of work of the High Authority. The Court of Justice was to ensure the observation of ECSC law along with the interpretation and application of the Treaty. The Court was composed of seven judges, appointed by common accord of the national governments for six years. There were no requirements that the judges had to be of a certain nationality, simply that they be qualified and that their independence be beyond doubt. The Court was assisted by two Advocates General. The Consultative Committee (similar to the Economic and Social Committee) had between 30 and 50 members equally divided between producers, workers, consumers and dealers in the coal and steel sector. Again, there were no national quotas and the treaty required representatives of European associations to organise their own democratic procedures. They were to establish rules to make their membership fully 'representative' for democratic organised civil society. Members were appointed for two years and were not bound by any mandate or instruction of the organisations which appointed them. The Committee had a plenary assembly, bureau and a president. Again, the required democratic procedures were not introduced and nomination of these members remained in the hands of national ministers. The High Authority was obliged to consult the Committee in certain cases where it was appropriate and to keep it informed. The Consultative Committee remained separate (despite the merger of the other institutions) until 2002, when the Treaty expired and its duties were taken over by the Economic and Social Committee (ESC). Achievements Its mission (article 2) was general: to 'contribute to the expansion of the economy, the development of employment and the improvement of the standard of living' of its citizens. Among the ECSC's greatest achievements are those on welfare issues. Some mines, for example were clearly unsustainable without government subsidies. Some miners had extremely poor housing. Over 15 years it financed

112,500 flats for workers, paying US$1,770 per flat, enabling workers to buy a home they could not have otherwise afforded. The ECSC also paid half the occupational redeployment costs of those workers who have lost their jobs as coal and steel facilities began to close down. Combined with regional redevelopment aid the ECSC spent $150 million creating 100,000 jobs, a third of which were for unemployedcoal and steel workers. Far more important than creating Europe's first social and regional policy, it is argued that the ECSC introduced European peace. It involved the continent's first European tax. This was a flat tax, a levy on production with a maximum rate of one percent.

2. THE TREATIES OF ROME Six years after the Treaty of Paris, (25 March 1957), the Treaties of Rome were signed by the six ECSC members, creating theEuropean Economic Community (EEC) and the European Atomic Energy Community (EAEC or 'Euratom'). The signatories of the historic agreement were Christian Pineau on behalf of France, Joseph Luns from the Netherlands, Paul Henri Spaak from Belgium, Joseph Bech from Luxemburg, Antonio Segni from Italy and Konrad Adenauer from the Federal Republic of Germany. The Treaties were ratified by National Parliaments over the following months and came into force on 1st January 1958.These Communities were based, with some adjustments, on the ECSC. The Treaties of Rome were to be in force indefinitely, unlike the Treaty of Paris which was to expire after fifty years. These two new Communities worked on the creation of a customs union and nuclear power community. The Rome treaties and the EEC became the most important tool for political unification, overshadowing the ECSC. Despite being separate legal entities, the ECSC, EEC and Euratom initially shared the Common Assembly and the European Court of Justice, although the Councils and the High Authority/Commissions remained separate. To avoid duplication, the Merger Treaty merged these separate bodies of the ECSC and Euratom with the EEC. The EEC later became one of the three pillars of the present day European Union. The Treaty establishing the EEC affirmed in its preamble that signatory States were "determined to lay the foundations of an ever closer union among the peoples of Europe". In this way, the member States specifically affirmed the political objective of a progressive political integration. The establishment of a customs union In fact, the brand new institution was a customs union. The EEC Treaty abolishes quotas and customs duties between the Member States. It establishes a common external tariff, a sort of external frontier for Member States' products, replacing the preceding tariffs of the different states. This customs union is accompanied by a common trade policy. This policy, managed at Community level and no longer at state level, totally dissociates the customs union from a mere free-trade association. The effects of dismantling customs barriers and eliminating quantitative restrictions to trade during the transitional period were very positive, allowing intra-Community trade and trade between the EEC and third countries to develop rapidly. As a consequence, the EEC was colloquially known as "Common Market". The member countries agreed to dismantle all tariff barriers over a 12year transitional period. In view of the economic success that freer commercial exchanges brought about, the transitory term was shortened and in July 1968 all tariffs among the EEC States were abrogated. At the same time, a common tariff was established for all products coming from third countries. The establishment of a common market Article 2 of the EEC Treaty specifies that "The Community shall have as its task, by establishing a common market and progressively approximating the economic policies of member states, to promote throughout the community a harmonious development of economic activities, a continuous and balanced expansion, an increase in stability, an accelerated raising of the standard of living and closer relations between the states belonging to it".This common market is founded on the famous "four freedoms", namely the free movement of persons, services, goods and capital. It creates a single economic area establishing free competition between undertakings. It lays the basis for approximating the conditions governing trade in products and services over and above those already covered by

the other treaties (ECSC and Euratom).Article 8 of the EEC Treaty states that the Common Market will be progressively established during a transitional period of 12 years, divided into three stages of four years each. To each stage there is assigned a set of actions to be initiated and carried through concurrently. Subject to the exceptions and procedures provided for in the Treaty, the expiry of the transitional period constitutes the latest date by which all the rules laid down must enter into force. The market being based on the principle of free competition, the Treaty prohibits restrictive agreements and state aids (except for the derogations provided for in the Treaty which can affect trade between Member States and whose objective is to prevent, restrict or distort competition. Finally, the overseas countries and territories are associated with the Common Market and the customs union with a view to fostering trade and promoting jointly economic and social development. As a matter of fact, the common market meant exclusively free circulation of goods. Free movement of persons, capitals and services continued to be subject to numerous limitations. It was necessary to wait until the Single European Act, in 1987, when a definitive boost was given to establish a genuine unified market. This brought about the European Union Treaty in 1992. The development of common policies Certain policies are formally enshrined in the Treaty, such as the common agricultural policy (Articles 38 to 47), common trade policy (Articles 110 to 116) and transport policy (Articles 74 to 84).Others may be launched depending on needs, as specified in Article 235, which stipulates that: "If action by the Community should prove necessary to attain, in the course of the operation of the common market, one of the objectives of the Community and this Treaty has not provided the necessary powers, the Council shall, acting unanimously on a proposal from the Commission and after consulting the Assembly, take the appropriate measures." After the Paris Summit of October 1972, recourse to this Article enabled the Community to develop actions in the field of environmental, regional, social and industrial policy. The development of these policies was accompanied by the creation of a European Social Fund whose aim is to improve job opportunities for workers and to raise their standard of living as well as to establish a European Investment Bank in order to facilitate the Community's economic expansion by creating new resources. Essentially, the CAP enacted a free market of agricultural products inside the EEC and established protectionist policies that guaranteed sufficient revenues to European farmers, avoiding competition from third countries' products by guaranteeing agricultural prices. With the aim of financing the CAP, the European Agricultural Guidance and Guarantee Fund (EAGGF) was established in 1962. The CAP has continued absorbing most of the community budget, and its reform has been one of the most badly needed in recent years. The Treaty of Rome also established the prohibition of monopolies, some transport common policies, and the grant of some commercial privileges to the colonial territories of the member States. The Treaty of Rome signified the triumph of a very realistic and gradualist approach to building the EU. The EEC from its birth was based on a series of institutions: the European Commission, the European Assembly, later known as European Parliament, the Court of Justice and the Economic and Social Committee, whose competences were enlarged and modified in the diverse agreements and treaties that succeeded the Treaty of Rome. The Treaty that instituted the EURATOM tried to create the conditions for developing a strong nuclear industry. It was much less important than the treaty that brought into existence the EEC and, in fact, when people speak about the treaties of Rome refer, incorrectly, to the one which established the EEC. 3. THE SINGLE EUROPEAN ACT The Single European Act was signed at Luxembourg on 17 February 1986, and at The Hague on 28 February 1986. It came into effect on 1 July 1987, under the Delors Commission. The Single European Act committed the Community to adopt measures with the aim of progressively establishing the internal market over a period expiring on 31 December 1992. At the same time it consecrated the European Council, European cooperation on foreign policy and social and economic cohesion between member States. Lastly, it served as a legal base for numerous common policies, notably, social, environmental, research and technology.

Major provisions of the Single European Act Added six new policy areas to European Community competence single market, monetary co-operation, social policy, cohesion (between richer and poorer regions), research and development, environmental standards Extended European Parliament powers the Council of Ministers could overrule the EP veto in most policy areas pertaining to the single market only by a unanimous vote Introduced qualified majority vote (QMV) in the Council, ending the national veto in most areas pertaining to the single market Gave formal standing to the European Council, by which the heads of state and government of the member states meet to discuss and determine policy Declared that the single internal EC market would br completed by 31 December 1992 and all remaining barriers to intra-Community trade removed

4. THE MAASTRICHT TREATY The Treaty of Maastricht was signed on 7 February 1992 and was in fact made up of two separate but interrelated Treaties: the Treaty on the European Union (TEU) and the Treaty establishing the European Community (TEC). The Treaty of Maastricht did 4 things which were of transforming significance for the integrationist project: 1. it extended the competence of the Communitys institutions into new areas 2. it established new and far reaching objectives which were openly integrationist in character 3. it aimed to create a single currency. Wrote a timetable for its introduction and set out the rules by which member states would qualify for admission and by which the currency would be governed (EMU) 4. it created a new structure, namely the 3 pillars. The two treaties separated the European construction into three pillars, distinguished mainly on the basis of the decision-making process: 1. The main pillar is the European Community and where the common work of the participants is regulated by the TEC and where the Community prevails 2. the pillar of justice and home affairs 3. the pillar of the common foreign and security policy (CFSP) The first of three pillars, the European Community, is much more important for the building of the EU than the other two. The Community itself is an internal market without barriers to trade, which includes a simple customs union in which independent nations agree not to put tariffs on each others goods. That is why each member state is entitled to ask the others whether those goods circulating freely are produced and traded under conditions which ensure fair competition. Moreover, the internal market is more than a simple customs union, because it does not simply guarantee the free movements of goods, but what we call the four freedoms free movements of goods, free movements of capital, free movements of services and free movement of labour. Pillars 2 and 3 were new pillars the construction of which was based on intergovernmental cooperation. Foreign policy and criminal law are matters traditionally regarded as fundamental to sovereignty, or the right and ability of an independent state to govern its affairs and those of the inhabitants of it territory. That is why the TEU required unanimity for decision-making, and, hence, any Member State could veto a common action. Common Foreign and Security Policy as well as Justice and Home Affairs cannot be used as a basis for Directives and Regulations, they are conducted by the national governments through the Council of Ministers and the European Council and give no formal powers to the supranational institutions (the Commission, the EP and the European Court of Justice).

Major provisions of the Maastricht Treaty (TEU) establishment of the EU with a 3-pillar structure

establishment of a timetable and conditions for economic and monetary union, including a single currency establishment of the European Union citizenship further extension of EC competence to education and culture, transeuropean networks, environmental policy, industrial policy, research and development agreement between 11 MS (excluding the UK) on Social Chapter further extension of powers of the EP establishment of the Cohesion fund ECJ was given the power to levy fines on MS The principle of subsidiarity was written in the Treaty As part of JHA, the power of the EC to deal with matters such as asylum policy and policing

5. THE TREATY OF AMSTERDAM The Treaty was signed on 17 June 1997 and marked some progress in several policy areas, without bringing fundamental changes. The Treaty of Amsterdam was an attempt to create an institutional structure, together with the appropriate policy goals and the instruments to achieve them, capable of enabling the EU to deal with a globalising economy, the threats of terrorism, international crime and drug trafficking, and threats to the environment and public health. Major provisions of the Amsterdam Treaty 1. Extension of the Qualified Majority Vote Extends QMV to the following fields employment guidelines and incentive measures; social exclusion; free movement of persons (after 5 years) Special treatment for foreign nationals; public health, equal opportunities and equal treatment for men and women; research development; countering fraud; customs cooperation; statistics; data protection; peripheral regions

2. Institutional Changes
Limits the no of members of the EP to 700, however big the EU may grow Nomination of the Commission President by MS must be approved by the EP; the Members of the Commission are to be nominated by common accord between the governments and the President of the Commission; the President of the Commission defines the Commissions general political guidelines ECJ gets direct responsibility for ensuring that human rights are respected and its jurisdiction is extended to migration, asylum, visas and the crossing of borders, as well as police, judicial and criminal matters The EC Court of Auditors is given new investigative powers

3. Development of CFSP
Provides for greater cooperation between MSs in pursuit of CFSP Empowers the EU to carry out humanitarian aid and peacekeeping tasks, to devise common strategies, general foreign policy guidelines, joint actions and common positions The EU is to be represented by a group called the troika consisting of the Presidency of the Council, the Commission and the Secretary General of the Council, who will act as the EUs High Representatives for the CFSP.

4. Social Questions and Civil Rights Empowers the Council to take appropriate action to combat discrimination based on sex, racial or ethic origin, religion or belief, disability, age or sexual orientation Provides for permanent or regular collaboration on employment and unemployment Protects individuals from the processing or personal data and the free movement of such information by institutions and administrations that handle it

5. Internal Security Provides for closer cooperation between police forces and customs authorities and directly with Europol, the European police network Establishes a legal requirements to have closer cooperation between MS police and judicial authorities to combat and prevent racism, xenophobia, terrorism, organised crime, trafficking of persons, and offences against children, drug trafficking, corruption and fraud Establishes in principle a common minimum standard for rules and penalties for organised crime, terrorism and drug trafficking. 6. Inward Migration Incorporates the Schengen Agreement into the Treaty Provides for the removal of all control on people crossing internal borders, whether EU citizens or nationals on non-member states Establishes common procedures and conditions for the issue of visas by MS and defines the terms on which nationals of non-member states shall in principle be free to travel within the EU for 3 months Defines minimum standards for the reception of asylum seekers in MS and for classifying nationals of non-member countries as refugees Lays down the terms of entry and residence of immigrants in the EU, and standards for procedures for the issue of long-term visas and residence permits by MS, standards for dealing with illegal immigration and illegal residence and the repatriation of illegal residents. 7. The Environment, Public Health and Consumer protection Stipulates that a high level of human health protection must be assured in the definition and implementation of all Community policies and activities Provides for a high level of consumer protection

6. THE TREATY OF NICE The Treaty was signed on 26 February 2001, aiming to prepare the institutions of the European Community to function with the representatives of the new MS. This treaty was concerned with mainly 4 areas (i) the replacement of the unanimity by qualified majority in the decision-making procedures; (ii) the enhanced cooperation of some MS; (iii) the weighing of votes in the Council and (iv) the size and composition of the Commission. The Treaty came into force on 1 February 2003, after having been first rejected by Ireland in a referendum (12 October 2002). Major provisions of the Treaty of Nice 1. new protocol on enlargement adopted 2. QMV extended to new areas, such as: Certain high-level appointments, including the President of the Commission and the High Representatives for the CFSP Certain aspects of the making of international agreements Actions taken in support of anti-discrimination measures adopted by the MS Certain actions enabling citizens to take advantage of the freedom of movement Most measures related to visas, asylum and immigration Granting of emergency financial assistance to MS Most industrial policy measures Financial and technical cooperation agreements with third countries (does not apply to association agreements and pre-accession measures)

3. formalized the Enhanced Cooperation: a) groups of at least 8 MS may make agreements among themselves which enable them to go further in particular policy areas than the rest are prepared to do, provided such agreements: further the objectives of the EU and reinforce integration respect the treaties and the single institutional framework of the EU respect existing EU law respect existing competences do not undermine market or economic and social cohesion respect the competences, rights and obligations of non-participating MS are in principle open to all MS are used only as a last resort b) established a new cooperation body, Eurojust c) establish a clear procedure for amending the fundamental aims of the EU, in consultation with the European Central Bank and by unanimous vote at Council d) the Commission President is given more power to manage the Commission and to force the resignation of an individual Commissioner. Since 2005, the Commission has 1 Commissioner per MS until membership reaches 27. After that, membership is to be established at a fixed number, and according to a system of national rotation, to be determined by unanimous vote at Council e) fixes the maximum number of MEPs at 732 (revised to 750) f) established a Social Protection Committee g) defines a procedure for setting up political parties at European level h) some European Council meetings (which had always taken place in the country holding the Presidency) to be held in Brussels, and, from the accession of the 18th MS all European Council meetings are to be held in Brussels. 1. THE STILLBORN EUROPEAN CONSTITUTION The Treaty establishing a Constitution for Europe (TCE), commonly referred to as the European Constitution, was created as a constitution for the European Union. It would have replaced the existing Treaties of the European Union with a single text, given limited legal force to the Charter of Fundamental Rights (which was incorporated into the Constitution), and expanded Qualified Majority Voting into policy areas which had previously been decided by unanimity among member states. It was signed in 2004 by representatives of the then 25 member states of the European Union and needed to be ratified by all member states to enter into force. 13 member states completed the ratification procedure, but the rejection of the Constitution by French and Dutch voters in May and June 2005, called the future of the Constitution into question. In light of these developments three member states, Finland, Germany and Slovakia, abandoned their partially complete ratification procedures and a further seven member states indefinitely postponed consideration. Following the period of reflection, the European Council meeting in June 2007 decided to start negotiations on a new reform treaty as a replacement. This treaty was later named the Lisbon Treaty. The Treaty establishing a Constitution for Europe was signed in Rome on 29 October 2004 by 53 senior political figures from the 25 member states of the European Union. In most cases heads of state designated plenipotentiaries to sign the treaty, but some presidents also signed on behalf of states which were republics. Most designated plenipotentiaries were prime ministers and foreign ministers.

Before a EU Treaty can enter into force, it must be ratified by all member states. Ratification takes different forms in each country, depending on its traditions, constitutional arrangements and political processes. Most member states traditionally ratify EU treaties following parliamentary votes, while some notably Ireland and Denmark also hold referendums. As a reaction to what was seen as the novel nature of the Constitution, many advocates and opponents of the Constitution argued that it should be subjected to Referendums across the European Union. On 20 April 2004 then British Prime Minister Tony Blair unexpectedly promised a referendum, a proposal which he had previously rejected. A further seven member states announced or had already announced that they would hold referendums on the Constitution. These being Denmark, France, Ireland, Luxembourg, the Netherlands, Spain and Portugal. On 29 May 2005 the French public rejected the Constitution by margin of 55% to 45% on a turn out of 69%. And just three days later the Dutch rejected the constitution by a margin of 61% to 39% on a turnout of 62%.Notwithstanding the rejection in France and the Netherlands, Luxembourg held a referendum on 10 July 2005 approving the Constitution by 57% to 43%. It was the last referendum to be held on the Constitution as all of the other member states that has proposed to hold referendums cancelled them. Content Institutional structure Under the TCE, the Council of the European Union would have been formally renamed the "Council of Ministers", which is already its informal title. The "General Affairs Council" would have been formally split from the "Foreign Affairs Council", which had informally held meetings separately since June 2002. The TCE included a flag, an anthem and a motto, which had previously not had treaty recognition, although none of them are new. Conferral, subsidiarity, proportionality The TCE would have reiterated several key principles of how the Union functions:

the principle of conferral: that all EU competences are conferred on it voluntarily by member states; the principle of subsidiarity: that governmental decisions should be taken at the lowest level possible while still remaining effective; the principle of proportionality: that the EU may only act to exactly the extent that is needed to achieve its objectives; the primacy of EU law: in areas where member states have made legally binding agreements at EU level, they may not then pass national laws incompatible with those EU laws.

The TCE would have specified that the EU is a union of member states, and that all its competences (areas of responsibility) are voluntarily conferred on it by its member states according to the principle of conferral. TheEU would have no competences by right, and thus any areas of policy not explicitly specified in the Constitution would have remained the domain of the sovereign member states (notwithstanding the flexibility clause' see below). According to the TCE, the EU may act (i.e. make laws) only where its member states agree unanimously that actions by individual countries would be insufficient. This is the principle of subsidiarity, and is based on the legal and political principle that governmental decisions should be taken as close to the people as possible while still remaining effective. It is a main argument against claims that Europe limits national sovereignty but critics say that it is a principle to which lip service only is paid, and, in practice, the reach of theEU has been increasingly ambitious. Common values of the Union's member states As stated in Articles I-1 and I-2, the Union is open to all European States that respect the member states' common values, namely:

human dignity freedom democracy equality the rule of law respect for human rights minority rights free market

Member states also declare that the following principles prevail in their society:

pluralism non-discrimination tolerance justice solidarity equality of the sexes

Some of these provisions are codified for the first time in the TCE. Aims of the Union The aims of the EU, according to the TCE, are made explicit (Article I-3):promotion of peace, its values and the well-being of its people

maintenance of freedom, security and justice without internal borders, and an internal market where competition is free and undistorted sustainable development based on balanced economic growth and price stability, a highly competitive social market economy social justice and protection, equality between women and men, solidarity between generations and protection of the rights of the child economic, social and territorial cohesion, and solidarity among member states respect for linguistic and cultural diversity

In its relations with the wider world the Union's objectives are:

to uphold and promote its values and interests to contribute to peace, security, the sustainable development of the Earth solidarity and mutual respect among people free and fair trade eradication of poverty and the protection of human rights, in particular the rights of the child strict observance and development of international law, including respect for the principles of the United Nations Charter.

Competences The EU has six exclusive competences, policy areas in which member states have agreed that they should act exclusively through the EU and not legislate at a national level. The list remains unchanged from the previous treaties:

customs union; those competition rules that govern the internal market; eurozone monetary policy; conservation of marine biological resources (the Common Fisheries Policy); common commercial policy;

the conclusion of certain limited international agreements.

There are a number of shared competences. These are areas in which member states agree to act individually only where they have not already acted through the EU, or where the EU has ceased to act (though these are areas where member states may act both nationally and through the EU if they wish). Three new competences have been added to those in previous treaties (see below). There are a number of areas where the EU may take only supporting, coordinating or complementary action. In these areas, member states do not confer any competences on the Union, but they agree to act through the Union in order to support their work at national level. Again, three new competences have been added to those from previous treaties (see below). Flexibility clause The TCE's flexibility clause allows the EU to act in areas not made explicit in the TCE, but only:

if all member states agree; with the consent of the European Parliament; and where this is necessary to achieve an agreed objective under the TCE.

This clause has been present inE U law since the original Treaty of Rome established the EEC in 1958. Common foreign and security policy The EU is charged with defining and implementing a common foreign and security policy in due time. The wording of this article is taken from the existing Treaty on European Union. New provisions Legal personality The European Union for the first time has legal personality under the TCE. This means that it is able to represent itself as a single body in certain circumstances under international law. Most significantly, it is able to sign treaties as a single body where all its member states agree. New competences The TCE would have conferred upon the EU as new 'shared competences' the areas of territorial cohesion, energy, and space. These are areas where the EU may act alongside its individual member states. The EU has conferred upon it as new areas of 'supporting, coordinating or complementary action' the areas of tourism, sport, and administrative co-operation. Criminal justice proceedings Member states would have continued to co-operate in some areas of criminal judicial proceedings where they agree to do so, as at present. Under the TCE, seven new areas of co-operation would have been added:

Child abuse corruption fraud Human trafficking drug trafficking terrorism Trafficking of arms

Solidarity clause The new solidarity clause of the TCE specifies that any member state which falls victim to a terrorist attack or other disaster will receive assistance from other member states, if it requests it. The type of assistance to be offered is not specified. Instead, the arrangements will be decided by the Council of Ministers should the situation arise. European Public Prosecutor Provision exists for the creation of a European Public Prosecutor's Office, if all member states agree to it and if the European Parliament gives its consent. Charter of Fundamental Rights of the European Union Main article: Charter of Fundamental Rights of the European Union The TCE includes a copy of the Charter already agreed to by all EU member states. This is included in the Constitution so that EU institutions themselves are obliged to conform to the same standards of fundamental rights. At the time of the Charter's original agreement, the British Government said that it did not have binding effect. Incorporation into TCE would have put its importance beyond doubt. Simplified jargon and legal instruments The TCE makes an effort to simplify jargon and reduce the number of EU legal instruments. However, it is a long document couched in obscure and technical terms, which proved unpopular when presented (for example) to French voters in their referendum on the TCE. The TCE unifies legal instruments across areas of policy (referred to as pillars of the European Union in previous treaties). Specifically:

'European Regulations' (of the Community pillar) and 'Decisions' (of the Police and Judicial Co-operation in Criminal Matters (PJC) pillar) both become referred to as European laws. 'European Directives' (of the Community pillar) and 'Framework Decisions' (of the PJC pillar) both become referred to as European framework laws. 'Conventions' (of the PJC pillar) are done away with, replaced in every case by either European laws or European framework laws. 'Joint actions' and 'Common positions' (of what is now the Common Foreign and Security Policy Pillar) are both replaced by Decisions.

Position of Union Minister for Foreign Affairs Under the TCE, the present role of High Representative for the Common Foreign and Security Policy would be amalgamated with the role of the Commissioner for External Relations. This would create a new Union Minister for Foreign Affairs who would also be a Vice President of the Commission. This individual would be responsible for co-ordinating foreign policy across the Union, representing the EU abroad in areas where member states agree to speak with one voice.

Functioning of the institutions

Qualified majority voting More day-to-day decisions in the Council of Ministers would be to be taken by qualified majority voting, requiring a 55% majority of members of the Council representing a 65% majority of citizens. (The 55% is raised to 72% when the Council acts on its own initiative rather than on a legislative proposal from the Commission or the Union Minister for Foreign Affairs.) The unanimous agreement of all member states would only be required for decisions on more sensitive issues, such as tax, social security, foreign policy and defense. President of the European Council The six-month rotating Presidency of the European Council would switch to a chair chosen by the heads of government, in office for 2 years and renewable once. The role itself would remain administrative and nonexecutive, but rather than the Presidency being held by a member state as at present, it would be held by an individual elected by and accountable to the Council. President of the Council of Ministers The six-month rotating Presidency of the Council of Ministers, which currently coincides with the Presidency of the European Council, would be changed to an 18-month rotating Presidency shared by a trio of member countries, in an attempt to provide more continuity. The exception would be the Council's Foreign Affairs configuration, which would be chaired by the newly-created Union Minister for Foreign Affairs. Smaller Commission The Commission would be reduced in size from 27 to 18 by the year 2014. There would be fewer Commissioners, with member states taking it in turn to nominate Commissioners two times out of three. Parliamentary power and transparency

President of the Commission: The candidate for President of the European Commission would be proposed by the European Council, after consultation with MEPs, and would be elected by the European Parliament. Parliament would have the final say. Parliament as co-legislature: The European Parliament would acquire equal legislative power under the codecision procedure with the Council in virtually all areas of policy. Previously, it had this power in most cases but not all. Meeting in public: The Council of Ministers would be required to meet in public when debating all new laws. Currently, it meets in public only for texts covered under the Codecision procedure. Budget: The final say over the EU's annual budget would be given to the European Parliament. Agricultural spending would no longer be ring-fenced, and would be brought under the Parliament's control. Role of national parliaments: Member states' national parliaments would be given a new role in scrutinising proposed EU laws, and would be entitled to object if they feel a proposal oversteps the boundary of the Union's agreed areas of responsibility. If the Commission wishes to ignore such an objection, it would be forced to submit an explanation to the parliament concerned and to the Council of Ministers. Popular mandate (aka initiative): The Commission would be invited to consider any proposal "on matters where citizens consider that a legal act of the Union is required for the purpose of implementing the Constitution" which has the support of one million citizens. The mechanism by which this would be put into practice has yet to be agreed. (See Article I-46(4) for details.)

Further integration, amendment and withdrawal Enhanced co-operation There would be a tightening of existing rules for 'enhanced cooperation', where some member states would have chosen to act together more closely and others not. A minimum of one third of member states would now be

forced to participate in any enhanced cooperation, and the agreement of the European Parliament is needed. The option for enhanced cooperation would also be widened to all areas of agreed EU policy. Treaty revisions Previously, alteration of treaties was decided by unanimous agreement of the European Council in private meeting. Proponents of the TCE claim that any amendments to the Constitutional Treaty will involve the convening of a new Convention, similar to that chaired by Valry Giscard d'Estaing in drafting the TCE. This process may be bypassed if the European Parliament agrees, in which case, the final say on adopting proposals will rest with the European Council, who must agree unanimously. However, small revisions (switching from unanimity voting to qualified majority voting in specific policy areas) can be made by the European Council through the so-called 'Passerelle Clause' (Article IV-444) if every member state agrees. Withdrawal clause A new clause in the TCE allows for the withdrawal of any member state without renegotiation of the TCE or violation of treaty commitments (clause I-60). Under this clause, when a country notifies the Council of its intent to withdraw, a settlement is agreed in the Council with the consent of Parliament. If negotiations are not agreed within two years, the country leaves anyway. The process described is a formalisation of the process which Greenland used to leave the EC in 1985.