International Business Law Chapter 15

Primary legislation

- Treaty on European Union (TEU); - Treaty on the Functioning of the European Union (TFEU); - Charter of Fundamental Rights of the European Union

Regulations

- of general application, - binding in their entirety - and directly applicable as soon as they enter into force. they must be complied with fully by those to whom they apply (private persons, Member States, Union institutions). They are designed to ensure the uniform application of Union law in all the Member States. Regulations supersede national laws incompatible with their substantive provisions.

STRUCTURE OF THE EUROPEAN UNION

1) European Council; 2) Council of Ministers of the European Union; 3) Commission of the European Union; 4) European Parliament; 5) Court of Justice.

The Members

751 Members elected in the 28 Member States. No member state can have more that 96 nor less than 6 MEPs.

Exclusive Competence

Areas such as the functioning of the customs union, common trade policy, competition law and monetary policy.

The European Commission

EU's executive body carrying out the decisions of the Council of Ministers. It is the only body that can make legislative proposals for the Council of Ministers and European Parliament to consider. It is headed by the College of Commissioners: - it consists of one member appointed by each member state, each of whom is obligated to represent the interests of the EU as a whole rather than the interest of the their home state. The Commission is headed by a president who is elected by the European Parliament.

The President

Elected for a renewable term of two and a half years, i.e. half the lifetime of a Parliament (MPEs are elected for 5 years). The EP President and the President of the Council both sign all legislative acts adopted under ordinary legislative procedure

The Council of Ministers of the European Union

It is composed of one representative from each member state depending on the subject on the agenda at a given meeting. The purpose of the Council: to coordinate economic policies of member states and to make decisions on issues within its jurisdiction, which includes approving legislative directives to the member states and international agreements.

European Council

It is composed of the heads of state of the EU's member states and the president of the EU. It has jurisdiction over the composition of the Parliament and the Commission and law enforcement, foreign policy and constitutional matters. The President is elected by the Council for 2 and 1/2 years and can be reappointed once. The President's work is administrative and acts as the EU's external representative on common foreign policy and security.

The Court of Justice of the European Union (CJEU)

It is the chief judicial authority of the EU It oversees the uniform application and interpretation of EU law, in cooperation with the national judiciary of the member states. It also resolves legal disputes between national governments and EU institutions It may take action against EU institutions on behalf of individuals, companies or organizations whose rights have been infringed.

The European Parliament

It is the only EU institution whose members are elected by European citizens. Each member state elects a different number, based on the population, known as MEP's (members of European Parliament

Standard voting method

It is used when the Council takes decisions during the ordinary legislative procedure, also known as co-decision (qualified majority). When the Council votes on a proposal by the Commission or the High Representative of the Union for Foreign Affairs and Security Policy, a qualified majority is reached if two conditions are met: 1) 55% of member states vote in favor - this means 16 out of 28 2) the proposal is supported by member states representing at least 65% of the total EU population

Blocking minority

It must include at least four Council members representing more than 35% of the EU population

greater role for national governments in EU affairs:

National parliaments may now object to proposed EU legislation depending on the basis that it oversteps EU authority. The Treaty of Lisbon formalized a procedure by which member states may withdraw from the EU. The Treaty also provides that the political, social and economic rights set forth in the Charter of Fundamental Rights are legally binding on the member states.

Budgetary power

Shared power to decide on the entire annual budget of the EU with the Council of the European Union. It has the final say

Shared Competence

The member states share competency with the EU in such areas as internal market, social policy, agriculture, environmental and consumer protection, transportation and energy

Support Competence

The EU may support actions in fields left primarily to the member states such as industry, tourism, culture and education.

EU Membership Application

The Maastricht Treaty provides that any European state may apply for membership if it respects democratic values. A state wishing to join must first reach a stabilization and association agreement with the EU whereby the potential candidate state is offered free trade incentives in return for commitments to political and economic reform. A state may submit an application for membership once such an agreement is completed: an applicant becomes an official candidate. Membership negotiations start now.

Legislative power

The ordinary legislative procedure gives the same weight to the European Parliament and the Council of the European Union on a wide range of areas (economic governance, immigration, energy, transport, the environment and consumer protection). The vast majority of European laws are adopted jointly by the European Parliament and the Council.

Commission of the European Communities (the Commission)

The three communities existed under the administration of a single institution

Supervisory powers

These allow the Parliament to - exercise oversight over other institutions, - to monitor the proper use of the EU budget and - to ensure the correct implementation of EU law.

Decisions

They are binding in their entirety. Where those to whom they are addressed are stipulated (Member States, natural or legal persons), they are binding only on them, and address situations specific to those Member States or persons. An individual may invoke the rights conferred by a decision addressed to a Member State only if that Member State has adopted a transposing act. Decisions may be directly applicable on the same basis as directives.

Recommendations and opinions

They are not binding. They do not confer any rights or obligations on those to whom they are addressed. They may provide guidance as to the interpretation and content of Union law.

Special cases

When not all Council members participate in the vote, for example due to an opt-out in certain policy areas, a decision is adopted if 55% of the participating Council members, representing at least 65% of the population of the participating member states, vote in favor. When the Council votes on a proposal not coming from the Commission or the high representative a decision is adopted if: - at least 72% of Council members vote in favor - they represent at least 65% of the EU population

CJEU

a court of final jurisdiction annexed by statute to United Nation Charter

Civil Service Tribunal

a specialized court which hears disputes between the EU and its staff

Single European Act

because progress on economic integration was very slow (EU was more a loose free trade area than a customs union) à the 12 members enacted the SEA (July 1987) in order to strengthen the institutions and enable them to act to further the goals of the Treaty of Rome

Directives

certain provisions of a directive may, exceptionally, have direct effects in a Member State even if the latter has not yet adopted a transposing act in cases where: (a) the directive has not been transposed into national law or has been transposed incorrectly; (b) the provisions of the directive are imperative and sufficiently clear and precise; (c) the provisions of the directive confer rights on individuals.

Council of Europe

consists of all EU members plus other states like Switzerland works to support human rights. has a European Court of Human Rights that hears complaints about violations of the European Convention of Human Rights.

Issues of enlargement

enlargement to Eastern Europe has resulted in increased development aid to these new and poorer member states. Expansion may also increase migration by Eastern Europe and exacerbate the unemployment problem facing Western Europe. Possible future expansion has caused the EU to consider what it means to be European

European Energy and Atomic Community (Euratom)

established also in 1957 by a second, separate, focusing on creating a market for and distributing atomic energy throughout the European states. It was also responsible for selling excess nuclear energy outside member states

European Coal and Steel Community (ECSC)

established in 1952 under the Treaty of Paris which defined an agreed common policy, covering combined price and output controls, tariff protection and competition rules with respect to coal and steel

European Community (EC)

established under the 1957 Treaty of Rome: it created a set of institutions empowered to develop common policies, but it left the substance of the policies to the new institutions

The Treaty of Lisbon

from 1991 until 2007 there were many issues in furthering economic integration. Attempts to address institutional reform in the Treaty of Nice (2003) failed. uSigned in December 2007 and entered into force in 2009; abolished the separation between the policy areas and introduced a single consolidated entity with a legal personality. The word Community was removed from the name of all existing institutions.

Benefits of enlargement

greater security for the continent and minimization of the likelihood of future armed conflict, democratization, the rule of law, access to new markets for goods and services ad cheaper labor

The legal acts of the Union are listed:

in Article 288 TFEU they are: - regulations, - directives, - decisions, - recommendations - and opinions.

Court of Justice

informally known as ECJ which hears applications from national courts for preliminary rulings, annulment and appeals

secondary legislation

international agreements; general principles of Union law

Treaty of Rome

it stated the original objectives of the EU, it launched the establishment of a customs union, gradually turning over international trade policy to the Commission. It contained "competition law" to maintain market competition by regulating anti-competitive conduct by companies

accession treaty

only drafted once negotiations are concluded. Accession treaties granting new membership must be ratified by all existing members. Any existing member state may effectively veto a new membership application although such an occurrence would be rare at this stage. Negotiations may be very long: Turkey has been an applicant since 1987.

The Maastricht Treaty (1991)

the EU concept was established, along with the EU citizenship which facilitated movement of labor. It set the stage for a single European currency and a European Central Bank to control monetary policy. It set goals for common policy on internal environment and increased the use of qualified majority voting.

European Union is a concept added by:

the Maastricht Agreement, also known as the Treaty on European Union It did not abolish the Communities, but created the concept of a Union as an expression of the member states' underlying unity. At that time, the level of political integration was very loose. There were there communities which acted in the different business markets as different communities.

General Court

which hears applications for annulment from individuals, companies and, less commonly, national governments (focusing on competition law, State aid, trade, agriculture and trade marks) also interprets EU law