Understanding EU institutions is the foundation of the AD5 EU Knowledge test. Questions test not just what each institution does, but how they interact, who appoints whom, and the precise mechanics of decision-making.
The Seven EU Institutions
1. European Parliament
The directly elected body representing EU citizens. 705 members (MEPs) elected every 5 years. Co-legislator with the Council under the ordinary legislative procedure. Also has budgetary authority and supervisory powers (can censure the Commission).
Key fact: The Parliament cannot initiate legislation — only the Commission can propose new laws.
2. European Council
Heads of State or Government of all member states, plus the European Council President and Commission President. Sets the overall political direction and priorities. Meets at least four times a year ("EU summits"). Does NOT adopt legislation.
Key fact: Don't confuse with the Council of the EU (different institution) or the Council of Europe (not an EU body at all).
3. Council of the European Union (Council of Ministers)
National ministers from each member state. The specific ministers attending depend on the policy area (e.g., finance ministers for economic policy). Co-legislator with Parliament. Decisions by qualified majority voting (QMV) or unanimity depending on the topic.
QMV threshold: 55% of member states (15 out of 27) representing at least 65% of the EU population.
4. European Commission
The EU's executive body. 27 Commissioners (one per member state), led by the Commission President. Has the exclusive right to propose legislation. Also enforces EU law ("Guardian of the Treaties"), manages EU budget, and represents the EU internationally.
Current: Von der Leyen Commission 2024-2029.
5. Court of Justice of the European Union (CJEU)
Ensures EU law is interpreted and applied uniformly. Two courts: the Court of Justice (one judge per member state) and the General Court. Handles preliminary rulings (interpreting EU law at national court request), infringement proceedings, and annulment actions.
6. European Central Bank (ECB)
Manages the euro and monetary policy for the eurozone. Independent from political institutions. Main objective: price stability (inflation target close to 2%). Located in Frankfurt.
7. European Court of Auditors (ECA)
Audits EU finances. Checks that EU funds are collected and spent correctly, and that EU financial management is sound. Publishes annual reports and special reports. Located in Luxembourg.
Other Key Bodies
- European External Action Service (EEAS) — the EU's diplomatic service, led by the High Representative
- Committee of the Regions — advisory body representing regional and local authorities
- European Economic and Social Committee — advisory body representing civil society
- European Investment Bank (EIB) — the EU's lending institution
The Ordinary Legislative Procedure
- Commission proposes legislation
- Parliament and Council each read and amend the proposal
- If they agree — the act is adopted
- If they disagree after two readings — a Conciliation Committee is convened
- If conciliation succeeds — both institutions vote on the joint text
Common Exam Traps
- European Council vs Council of the EU — different institutions with different roles
- Council of Europe — NOT an EU institution (it's a separate international organisation)
- Parliament cannot propose legislation — only the Commission can
- QMV requires both a majority of states AND a population threshold
- The ECB is independent — no EU institution can give it instructions