EU Politics

CHAPTER 13: Other Institutions

Outline

1) European Economic and Social Committee (EESC)

2) Committee of the Regions (CoR)

3) European Agencies

4) European Investment Bank (EIB)

5) European Central Bank (ECB)

6) Court of Auditors

1) European Economic and Social Committee (EESC)

“A bridge between Europe and organized civil society »

EESC: Membership

• 344 members

• Elected for 5 years (renewable)

• Proposed by national governments and appointed by the Council of Ministers

EESC: Membership (contd)

• Membership divided into 3 groups: EmployersEmployeesVarious Interests

EESC : Organisation

EESC: Functions• A forum to exchange views and ideas

• Consultative organ

• It issues opinions on several EU matters

EESC : Functions (Contd)

Opinions are issued in 3 circumstances :

• Mandatory referral //Art.304 of the TFEU : “The Committee shall be consulted by the European Parliament, by

the Council or by the Commission where the Treaties so provide”. • Optional consultation //Art.304 of the TFEU : “in all cases in which they consider it

appropriate”.

• Own initiative

2) Committee of the Regions(CoR)

CoR: Origins• Regional issue important role in the EU

• Reasons : Variations in wealth and income between MS => compensatory

measures ERDF (1975) => attraction of funds Pressure by transnational organisations

• Reponse of Commission CoR

CoR: Membership

• Renewable 5-year term office by the Council of Ministers

• Basis: proposal from MS

• 300 TFEU: “The Committee of the Regions shall consist of representatives of regional and local bodies who either hold a regional or local authority electoral mandate or are politically accountable to an elected assembly”

CoR: Organization

• Planning by 60 member Bureau

CoR President 1st Vice President 27 Vice President 2-year term 27 Members Chairs of the 4 political groups

CoR: Functions and Powers• Advisory nature

• Art.307 TFEU: “The Committee of the Regions shall be consulted by the European Parliament, by the Council or by the Commission where the Treaties so provide and in all other cases, in particular those which concern cross-border cooperation, in which one of these institutions considers it appropriate.”

• Time limit to give opinion, if not cannot prevent EP, Council or Commission from proceeding

3) European Agencies

European Agencies: Notion

-> Organizations that undertake policy functions even if they are not part as such of the political and administrative systems

European Agencies: Origins

• 1975

• Reflects : “the existence of functional needs that are not met by centralized policy-making institutions”

European Agencies: Organisation• 40 EU Agencies

• Two forms :Executive agencies limited period

Regulatory agencies more important politically ; independent ; own legal basis

4) European Investment Bank(EIB)

EIB: Origins

• 1958, under EEC Treaty

• Members: MS

• Luxembourg

EIB: Responsibilities and Functions• Art. 309 TFEU: “The task of the European Investment Bank

shall be to contribute, by having recourse to the capital market and utilising its own resources, to the balanced and steady development of the internal market in the interest of the Union.

For this purpose the Bank shall, operating on a non-profit-making basis, grant loans and give guarantees which facilitate the financing of the following projects in all sectors of the economy”

Source of investement finance for projects that further EU goals

• Policy framed within COPs objective

EIB: Responsibilities and Functions (contd)

• 2 conditions for EIB the granting of loans:

1)Project in compliance with objectives of art. 309 TFEU, COP and credit Directives from Bank’s Board of Governors:

2) Projects financially and technically viable + adequate security for loans EIB is not a loss-making body

EIB: Responsibilities and Functions (contd)

• EIB’s loans must be financed from its own capital 2 sources:

1) Paid-in or due-to-be-paid-in capital by MS

2) Borrowing on capital markets inside and outside EU

EIB: Organisation

• 3 main decision-making bodies:

Board of Governors

Board of Directors

Management Committee

5) European Central Bank (ECB)

ECB: Origins

• Responsible for the day-to-day management of common monetary policies

• BUT: subject to some political direction and accountability.

ECB: Objectives and Tasks

• Art.127 TFEU :”The primary objective of the European System of Central Banks…shall be to maintain price stability(…).”

ECB: Objectives and Tasks (contd)

ECB: Objectives and Tasks(contd)

ECB: Organisation• Art.129 TFEU :“The ESCB shall be governed by the decision-making bodies

of the ECB which shall be the Governing Council and the Executive Board”.

ECB: Organisation(contd)Peter Praet

6) Court of Auditors

Ct of Auditors: Origins

• 1975: Treaty Amending Certain Financial Provisions of the Treaties

• Maasticht Treaty: The Court becomes a community institution

• Luxembourg

Ct of Auditors: Membership and Organisation

• Members : 1 member/MS

Appointment by Council of Ministers (QMV) after consultation of the EP

Members must belong or have belonged to an external audit body in their country

Renewable 6-year period

Members act in general interest

Independence

Preparation and implementation of the decisions of the Court

5 audit groups

Important decisions in plenary sessions

Ct of Auditors: Membership and Organisation

(contd)• President: Elected within the 27 members

Renewable 3-year term

Efficient running of the Court

Representation of the Court in its external relations

Ct of Auditors: Activities

• Examination of all the EU revenues and expenditure accounts

• Provision to the Council and EP of a Statement of Assurance

• 2 main types of activities: 1) Audits and 2) Special reports and opinions

Ct of Auditors: Activities(contd)

1) Audits general budget of EU

financial operations not included in the budget

Ct of Auditors: Activities (contd)

2) Special reports and opinions

→On demand of EU instituions

→Before the adoption of a new or updating legislation with a potentially significant financial impact

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