This is a Poster session we held last 31st of October 2014 with Bussiness students in Economics and Bussiness Faculty, Universidad de Oviedo

1. Poster session
European Union
institutions and Budget
31st of October 2014

2. 2. THE SINGLE
MARKET
PROGRAMME
(1992)
Before (1973-1986)
Euro-Pessimism
Political shocks
Economic shocks
Bright spots
Decision-making Jam
Deep economic integration
Failure of monetary integration
& deeper trade integration
Democracies (Spain, Portugal, Greece)
1965: Merger Treaty
1978: EMS
1979: EU Parliament direct election
Reinforce the “four freedoms”:
free movement og goods,
services, people and capital
Majority voting, no
unanimity
-Goods trade liberalization
-Elimination of border
formalities
-Harmonization of VAT
-Removal of all capital
controls
-Increase in capital market
integration
It was necessary due to the
discontent of European
Community members that
wanted to harmonize laws among
countries and resolve policy
discrepancies.
Fuentes Salas, Claudia
González Vázquez, Ignacio

3. 3. The 5 Institutions of the
EU
The Commission
 Enforces the Treaties
 Proposals are usually based on
general guidelines by the
Councils, the Parliament or the
Treaties
 Manages EU budget
 Right to initiate proposals of
acts
 Shall save the competition
 Each specific area of EU
policies has one Commissioner
The Council of the
EU
 Main decision-making body
 All Eu members are elected
democratically
 Responsabilities in all-first
pillar areas
 It takes thee decisions
referring to Common foreign
and security policies
 One representative from each
EU member (27 ministers, for
example agriculture,
representing national
governments)
The European
Parliament
 Democratic supervision of
the EU
 Shares legislative powers
with the Council and the
Comission and overseeing
all EU institutions
 750 members directly
elected by EU citizens in
national elections every 5
years
 Number of members of the
European Parliament per
nation varies with population
The Court of Justice
 EU LAW: supranational legal
system; no formal institution, so EU
law is created via case law
 The Court of Justice settles disputes
in interpretation of law
 Disputes between
 Member States
 EU and Member States
 EU institutions
 Individuals and the EU
 One judge from each MS, appointed
by common accord of MS, serve for
6 years
1. Sends
proposal to:
The European
Council
 The highest political level in the
EU
 It provides political guidance, it
instigates EU initiatives and
policies
 Its members are the leaders of
their respective nations
(decisions taken by consensus)
 President of the European
council (2 and a half years, can
not hold a member state,
selected by qualified majority
voting, represents the EU at
international summits)
Tim Klancnik
Luis Paquet
Carmen Ovies
Rita Tiemann

4. “Co-decision
becames the
Legislative
process”
Which is central
to the
Community’s
decision-making
system.
Outcome: EU
institutional
framework
resembels a dual
legisive system.
Introduced
by the
Treaty of
Maastrich
(1993),
Parlament is
divided along party
political lines.
Council
reflects
national
interest
EUROPEAN
PARLIAMENT
COUNCIL
(MEMBER STATES)
Regions
comittee
Extended by the
National
parlaments
Treaty of
Amsterdam (1999)
Grew further
under the
Nice Treaty
(2003).
EUROPEAN
COMISSION
Other authorities
 Represents citizens.
 751 members(elected every five
years by universal suffrage)
 Since 1950 Parliament power
have grown generating more
equality with the Council.
 Parliament has the power of
censure.
 Represents the nactional
government of member
states.
 Composed by 28 member
states
 Votes are weighted with
respect of the population
of each state.
• Was established in 1958.
• Is the executive body of EU.
• Responsabilities: draft
legislation and arbitrate in the
legislative process,make rules
and regulations and represent
the EU in trade negotiations.
Social and
economic
comittee Velarde Cadierno, Ignacio
Vilar Cueto, Alba

5. 28 EU countries have a total of 352 votes
260
UNANIMITY…
65 %
55% members
Inability to make decisions
LISBON T.
According to
population
“Double
Majority”
Weights
NICE T.
Demographic
verification”
Number of votes
increased from
250 to 255
T. OF ROME
• Designed the
QMV (Council)
• According to
population
Inequality between
countries
Charles De Gaulle
(1965)
Single European Act
(1986), extension
Maastrich T.
• Home affairs
incorporations
Amsterdam T.
• New areas
1995, small states
in the EU
TODAY
Álvarez Ortega, Marta
Sierra Zapico, Ana
Suarez Peláez, Alfonso

6. IS THE DECISION MAKING IN THE EU DEMOCRATIC?
EU: Governed by elected or appointed
representatives through the European
Parliament and the Council ,the European
Commission, the European Council and
the EU Court.
Democracy as a control mechanism
There is a divergence of interests between voters and
decision-makers.
However, in order to get elected, politicians make
decisions close to the interest of the average citizen.
 Subsidiary principle: decisions should be made as
close to the people as possible in the EU.
Democratic deficit within the
European Union
Idea: the governance of the European Union
lacks of democratic legitimacy in issues facing
the EU. Proponents of Pro-Europeanism
argue: the European Union should reform its
institutions to make them more accountable.
Different criticisms to the main European
institutions. Many Europeans = losing faith
in the political system.
Efficiency of decision making in the EU
Qualified majority voting in the Council.
Populous members = more votes (but not proportional to
population).
Shift from unanimity to QMV (80%) after the Single
European Act (1987) boosted efficiency.
Power distribution and power
measures among EU members
Power = ability to influence EU decisions by being
in a position to make the winning coalition in the
Council.
-Most direct measure of political power = national
voting shares in the Council
-More votes = more power?
-Another manifestation of power = budget
allocation to the European Union.
Vote shares = natural measure of
power
Problems: simple majority rule (+50%
win)
Votes = incorrect view of power
Power depends on: complex interaction
of majority + exact distrobution of votes
Law of large numbers
Tactic applied for the distribution of the
power among EU members
Each member vote = crucial
Take into account: power in the EU
Power shifts
Nice Treaty
Constitutional Treaty = hardly accepted by EU leaders
Lisbon Treaty
Finally: new voting rules = change power
distribution between large and small countries +
additional power to smallest states
Democratic legitimacy
Legitimacy = “in the other person´s shoes”
rule
Individuals = happy with: Equiality
Natural legitimacy principle
EU = union of states (power per nation) +
union of people (power per person)
Nice Treaty voting rules = democracy is
applied but it has deficit
EU court
Decides: allocation of policy areas
Helps the Treaties
EU = subsidiarity and proportionality principle
Tasks = allocated to national and sub-national
governments
Old three-pillar structure of the EU
Democracy
As a control device = decentralization

7. 7.What is meant by subsidiarity and proportionality?
Both principles of European Union Law
Subsidiarity in the EU: 2 goals
Allow the EU to act if a problem cannot be
adequately addressed by national policies
alone.
Guard national sovereignty in those areas
that cannot be dealt with more effectively at
the EU level.
Principle since 1992 Treaty
of Maastricht
Proportionality
Principle since EU
inception in 1957
Actions taken by the Union, in terms of its form and content,
does not exceed what is required to achieve the objectives set
out in the Constitution..
National parliaments are in charge of
making sure that the Commission does
not take initiatives for which it is not
competent
How do they work together?
According to the subsidiarity principle VAT should harmonized at EU level although the
proportionality principle says only some harmonization is needed so maximum and minimum
VAT rates are set and members set it within those limits.
Violation of proportionality and subsidiarity will
take decision power from national parliaments. National parliaments have six
weeks, starting from the date on
which a draft European legislative
act is forwarded to inform if they
feel any principle is violated.
‘’I value subsidiarity highly. For me, subsidiarity is not a technical concept. It is a fundamental
democratic principle. An even closer union among the citizens of Europe demands that
decisions are taken as openly as possible and as closely to the people as possible’’ Jose
Manuel Barroso – President of the European Commission
González Moral, Inés
Llorente Álvarez, Santiago

8. 8. What are the major eu budget receipts and spending
areas? Discuss the historic evolution of the EU
expenditure
THE BUDGET IS FUNDED
THROUGH FOUR MAIN
SOURCES OF REVENUE: CET,
AGRICULTURAL LEVIES, VAT
RESOURCE AND GNP BASED.
EACH MEMBER PAYS
REGARDLESS OF ITS INCOME
LEVEL
TOTAL EU SPENDING WAS
€148,408 IN 2013. EVEN IF
IT SEEMS A LOT, IT ONLY
ACOUNTS FOR AROUND
1% OF EU27 GDP
THE BUDGET IS SPENT MAINLY
ON AGRICULTURAL
PROGRAMMES AND ON
COHESION
THE DISTRIBUTION OF
NET CONTRIBUTIONS IS
QUITE UNEQUAL. THE
BIGGEST NET RECIPIENTS
ARE LUXEMBOURG AND
THE 3 POOREST
MEMBERS (GREECE,
PORTUGAL AND SPAIN)
Montes García , Cristina
Odoardi, Valerio
Otegui Prado, Maria