Explanation – How do the European Union institutions work?

(Reuters) – Citizens across the European Union are currently voting in European Parliament elections to choose their direct representatives in the supranational legislative body.

The European Parliament is one of the EU’s three main political institutions, along with the European Council, which represents the governments of the 27 member states, and the European Commission, the EU’s executive body based in Brussels.

Here we will take a closer look at the functioning of the EU’s three main institutions.

Only the European Commission can formally propose new laws, either on its own initiative or following a request from other EU institutions or citizens.

Laws are passed through agreements between the European Parliament, made up of national government ministers in specific policy areas, and the Council of the European Union.

In May, the Council approved groundbreaking rules on artificial intelligence following a favourable parliamentary vote, but legislation to restore damaged nature remains in uncertainty after Hungary withdrew its support for the bill in March.

Because some Council decisions must be unanimous, member states retain a de facto veto over EU legislation in areas such as taxation, EU enlargement and foreign policy, including sanctions.

Both the Assembly and the Council can formally veto and repeal legislation at any stage in the process.

How agencies interact with the government

Besides the Council of EU Ministers, the heads of state or government of EU countries also meet in the European Council, usually every three months, and the head of the European Commission is also invited to participate.

The European Council is the EU’s highest political body, dealing with problems that ministers cannot resolve, setting priorities for EU work and taking positions on global issues.

EU leaders also nominate the European Commission president, who must receive the support of a majority in Parliament.

This will be one of the first tasks of the newly elected European Parliament, along with electing its President for a two-and-a-half-year term.

The European Council also appoints key officials such as the European Commission, the President of the European Central Bank and the head of foreign affairs.

Each country contributes to the EU budget or receives a share of the budget depending on the size and type of its economy, its compliance with EU law and the needs of certain policies and projects.

About a third of the funds will be used to improve living standards in poor areas, and the other third will be donated to farmers.

The money will also be used to provide grants and loans to businesses, nonprofits and students.

Conventions, Regulations and Directives – What’s the difference?

EU law is negotiated by Parliament, the Commission and the Member States, and the Treaties set out the EU’s principles, institutions and law-making procedures.

Regulations are directly applicable to all Member States, whereas Directives require countries to achieve specific objectives and allow flexibility in implementation. Decisions can target specific companies, individuals or Member States.

Among the recently approved laws are regulations on horse mackerel fishing quotas, a directive on professional gender equality, and a decision approving Kuwait’s accession to the International Sugar Agreement.

Notable examples in recent months include the May regulation setting tariffs on Russian grain products, the February directive on environmental crimes and the December decision to approve German state aid for RWE.

The Court of Justice of the European Union interprets and ensures the application of treaties and laws, and has the power to impose fines on member states in case of breaches.

In antitrust cases, the court reviews fines imposed by the Commission on companies.

International agreements with partner countries and organizations also form the legal framework.

(Reporting by Olivier Sorgo, Luca Fratangelo and Alessandro Parodi; Editing by Mila Nissi and Gareth Jones)

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