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treaty establishing a constitution for europe was proposed this proposed constitution was largely symbolic but was rejected by referendums in france and the netherlands most of its technical provisions were inserted into the treaty of lisbon without the emotive symbols of federalism or the word constitution in the same year bulgaria and romania joined during the subprime mortgage crisis and the 2008 financial crisis european banks that were invested in derivatives were put under severe pressure british french german and other governments were forced to turn some banks into partially or wholly state owned banks some governments instead guaranteed their banks debts in turn the european debt crisis developed when international investment withdrew and greece spain portugal and ireland saw international bond markets charge unsustainably high interest rates on government debt eurozone governments and staff of the european central bank believed that it was necessary to save their banks by taking over greek debt and impose austerity and structural adjustment measures on debtor states this exacerbated further contraction in the economies in 2011 two new treaties the european fiscal compact and european stability mechanism were signed among the nineteen eurozone states in 2013 croatia entered the union however a further crisis was triggered after the uk s conservative government chose to hold a referendum in 2016 and campaigners for leave or brexit won 51 89 per cent of votes on a 72 2 per cent turnout 12 this referendum was politically inconclusive given the uk s system of parliamentary sovereignty with no agreement after the 2017 election until the 2019 general election brought a conservative majority with a manifesto commitment to drive through brexit the uk left eu membership in february 2020 with uncertain economic territorial and social consequences constitutional law edit see also constitutional law united kingdom constitutional law basic law for the federal republic of germany constitution of france and constitutional law of the united states the european parliament elected by eu citizens makes new laws with the commission and council 13 to address the eu s asserted democratic deficit 14 parliament increasingly assumed more rights in the legislative process proposals have not yet been adopted to allow it to initiate legislation require the commission to be from the parliament and reduce the power of the court of justice 15 although the european union does not have a codified constitution a like every political body it has laws which constitute its basic governance structure b the eu s primary constitutional sources are the treaty on european union and the treaty on the functioning of the european union which have been agreed or adhered to among the governments of all 27 member states the treaties establish the eu s institutions list their powers and responsibilities and explain the areas in which the eu can legislate with directives or regulations in 1983 the european court of justice has referred to the treaties as being a basic constitutional charter for the first time 16 the european commission has the right to propose new laws formally called the right of legislative initiative 17 during the ordinary legislative procedure the council whose members are ministers from member state governments and the european parliament elected by citizens can make amendments and must give their consent for laws to pass 18 the commission oversees departments and various agencies that execute or enforce eu law the european council rather than the council of the european union made up of different government ministers is composed of the prime ministers or executive presidents of the member states it appoints the commissioners and the board of the european central bank the european court of justice is the supreme judicial body which interprets eu law and develops it through precedent the court can review the legality of the eu institutions actions in compliance with the treaties it can also decide upon claims for breach of eu laws from member states and citizens treaties edit main article treaties of the european union v t e eu treaties and accessions teu 2007 arts 7 48 50 and tfeu 2007 treaty of paris 1951 euratom treaty 1957 treaty establishing the european economic community 1957 merger treaty 1965 single european act 1986 maastricht treaty 1992 treaty of amsterdam 1997 treaty of nice 2001 treaty of lisbon 2007 treaties of accession 1972 1979 1985 1994 2003 2005 2011 vienna convention 1969 arts 5 and 30 schengen agreement 1985 and 1990 treaty establishing the european stability mechanism 2012 treaty on stability co ordination and governance 2012 see eu law eurozone participation european union member states special territories not shown 21 in the eurozone 1 in erm ii with an opt out denmark 5 not in erm ii but committed to join the eurozone after meeting the convergence criteria czech republic hungary poland romania and sweden non eu member states 4 using the euro with a monetary agreement andorra monaco san marino and vatican city 2 using the euro unilaterally kosovo and montenegro v t e the treaty on european union teu and the treaty on the functioning of the european union tfeu are the two main sources of eu law representing agreements between all member states the teu focuses more on principles of democracy human rights and summarises the institutions while the tfeu expands on all principles and fields of policy in which the eu can legislate in principle the eu treaties are like any other international agreement which will usually be interpreted according to principles codified by the vienna convention 1969 19 it can be amended by unanimous agreement at any time but teu itself in article 48 sets out an amendment procedure through proposals via the council and a convention of national parliament representatives 20 under teu article 5 2 the principle of conferral says the eu can do nothing except the things which it has express authority to do the limits of its competence are governed by the court of justice and the courts and parliaments of member states 21 under teu article 6 1 the charter of fundamental rights of the european union cfr has the same legal value as the treaties teu tfeu it does not however extend the competences of the eu it serves as a set of fundamental rights which all eu legislation has to respect whether it is an eu institution or a member state which executes those laws 22 as the european union has grown from 6 to 27 member states a clear procedure for accession of members is set out in teu article 49 the european union is only open to a european state which respects the principles of human dignity freedom democracy equality the rule of law and respect for human rights including the rights of persons belonging to minorities countries whose territory is wholly outside the european continent cannot therefore apply c although malta and cyprus which sit entirely on the african or asian continental plates have been accepted as members nor can any country without fully democratic political institutions which ensure standards of pluralism non discrimination tolerance justice solidarity and equality between women and men prevail 23 article 50 says any member state can withdraw in accord with its own constitutional requirements by negotiated arrangements for its withdrawal taking account of the framework for its future relationship with the union this indicates that the eu is not entitled to demand a withdrawal and that member states should follow constitutional procedures for example through parliament or a codified constitutional document 5 once article 50 is triggered there is a two year time limit to complete negotiations a procedure which would leave a seceding member without any bargaining power in negotiations because the costs of having no trade treaty would be proportionally greater to the individual state than the remaining eu bloc 24 article 7 allows member states to be suspended for a clear risk of a serious breach of values in article 2 for example democracy equality human rights with a four fifths vote of the council of the european union and the consent of the parliament 25 within the treaties framework sub groups of member states may make further rules that only apply to those member states who want them for example the schengen agreements of 1985 and 1990 allow people to move without any passport or id checks anywhere in the eu but did not apply to the uk or ireland during the european debt crisis the treaty establishing the european stability mechanism 2012 and the treaty on stability co ordination and governance 2012 the fiscal compact were adopted only for member states who had the euro i e not denmark sweden the uk poland czech republic hungary romania or bulgaria this required among other things a pledge to balance the government budget and limit structural deficits to 0 5 per cent of gdp with fines for non compliance the jurisdiction for these rules remains with the court of justice 26 executive institutions edit main articles european commission european civil service and european central bank v t e eu executive institution sources teu art 17 tfeu arts 244 250 commission v edith cresson 2006 c 432 04 weddel co bv v commission 1992 c 54 90 tfeu art 282 287 statute of the european central bank see eu law the european commission is the main executive body of the european union 27 article 17 1 of the treaty on european union states the commission should promote the general interest of the union while article 17 3 adds that commissioners should be completely independent and not take instructions from any government under article 17 2 union legislative acts may only be adopted on the basis of a commission proposal except where the treaties provide otherwise this means that the commission has a monopoly on initiating the legislative procedure although the council or parliament are the de facto catalysts of many legislative initiatives 28 the european central bank whose frankfurt headquarters opened in 2015 exercises executive control within its monetary policy powers 29 it was targeted by the blockupy movement for its role in the european debt crisis the commission s president as of 2021 update ursula von der leyen sets the agenda for its work 30 decisions are taken by a simple majority vote 31 often through a written procedure of circulating the proposal and adopting it if there are no objections citation needed in response to ireland s initial rejection of the treaty of lisbon it was agreed to keep the system of one commissioner from each of the member states including the president and the high representative for foreign and security policy currently josep borrell 32 the commissioner president is elected by the european parliament by an absolute majority of its members following the parliamentary elections every five years on the basis of a proposal by the european council the latter must take account of the results of the european elections in which european political parties announce the name of their candidate for this post hence in 2014 juncker the candidate of the european people s party which won the most seats in parliament was proposed and elected the remaining commissioners are appointed by agreement between the president elect and each national government and are then as a block subject to a qualified majority vote of the council to approve and majority approval of the parliament 33 the parliament can only approve or reject the whole commission not individual commissioners but conducts public hearings with each of them prior to its vote which in practice often triggers changes to individual appointments or portfolios tfeu art 248 says the president may reshuffle commissioners though this is uncommon without member state approval a proposal that the commissioners be drawn from the elected parliament was not adopted in the treaty of lisbon though in practice several invariable are relinquishing their seat in order to serve commissioners have various privileges such as being exempt from member state taxes but not eu taxes 34 and having immunity from prosecution for doing official acts 35 commissioners have sometimes been found to have abused their offices particularly since the santer commission was censured by parliament in 1999 and it eventually resigned due to corruption allegations this resulted in one main case commission v edith cresson 36 where the european court of justice held that a commissioner giving her dentist a job for which he was clearly unqualified did in fact not break any law by contrast to the ecj s strictly legalistic approach a committee of independent experts found that a culture had developed where few commissioners had even the slightest sense of responsibility 37 this led to the creation of the european anti fraud office in 2012 it investigated the maltese commissioner for health john dalli who quickly resigned after allegations that he received a 60m bribe in connection with a tobacco products directive citation needed beyond the commission the european central bank has relative executive autonomy in its conduct of monetary policy for the purpose of managing the euro 38 it has a six person board appointed by the european council on the council s recommendation the president of the council and a commissioner can sit in on ecb meetings but do not have voting rights legislature edit main articles european union legislative procedure european parliament council of the european union and european council v t e eu legislative body sources teu arts 9 14 and tfeu art 223 234 decision 2002 772 roquette v council 1980 case 138 79 front national v parliament 2004 c 486 01 p parti écologiste les verts v parliament 1986 case 294 83 teu arts 15 16 and tfeu arts 235 243 tfeu art 288 294 commission v council 1971 case 22 70 tfeu arts 313 319 teu art 20 and tfeu arts 326 334 teu arts 4 and 5 germany v commission 1987 case 281 85 tfeu arts 2 6 and 352 hauptzollamt bremerhaven v massey ferguson 1973 case 8 73 see eu law the parliament is elected each five years aspiring to the principle of equality of its citizens 39 its power is limited compared to the commission and council while the commission has a monopoly on initiating legislation the european parliament and the council of the european union have powers of amendment and veto during the legislative process 40 according to the treaty on european union articles 9 and 10 the eu observes the principle of equality of its citizens and is meant to be founded on representative democracy in practice equality and democracy are still in development because the elected representatives in the parliament cannot initiate legislation against the commission s wishes 41 citizens of smallest countries have greater voting weight in parliament than citizens of the largest countries 42 and qualified majorities or consensus of the council are...
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