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Fact sheet prepared by the Bureau of European and Canadian Affairs, November 24, 1997.
The European Union (EU)--formerly the European Community--is comprised of three separate communities: the European Coal and Steel Community, established in 1951; and the European Atomic Energy Community and the European Economic Community, both established in 1957. The EU currently has 15 members: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom.
The Maastricht Treaty went into effect November 1, 1993. On that date, the European Community formally became the European Union, and the Commission of the European Communities became the European Commission. Under Maastricht, member states began intergovernmental coordination on Common Foreign and Security Policy (the "Second Pillar") and Justice and Home Affairs (the "Third Pillar.") The treaty set a timetable for the introduction of a single currency and a European Central Bank as well as the development of common economic and monetary policies.
The question of how fast to proceed with enlargement of the Union while strengthening EU institutions--the "widening" versus "deepening" issue--continues to be a major topic for discussion among member states. In the most recent enlargement, Austria, Finland, and Sweden joined the EU on January 1, 1995. Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, and Turkey have applied for membership. In July 1997, the Commission recommended that Cyprus, the Czech Republic, Estonia, Hungary, Poland, and Slovenia be the first six countries to begin accession negotiations for EU membership. The final decision on enlargement, however, will be based on a consensus decision by the 15 EU member states which may be taken this December.
The EU's Intergovernmental Conference, completed in June 1997, reviewed the Treaty on European Union and made modest institutional changes to prepare for further enlargement. The resulting Amsterdam Treaty is now awaiting ratification by the member states, a process which would take one to two years. More far-reaching reforms will be revisited at a later date.
Major EU institutions are the Commission, the Council of Ministers, the European Parliament, and the European Court of Justice. Member states have relinquished a degree of sovereignty to EU institutions and to cooperate in the joint administration of these powers.
The 20-member Commission, appointed by common agreement of the 15 governments and approved by the European Parliament, has primary responsibility for initiating and implementing EU policy in areas that fall under EU treaties; for example, the internal market, external trade, and agricultural policy. The Council of Ministers, representing the member states, occupies the preeminent position in the current institutional power balance and decides on the Commission's proposals as well as leading on foreign and justice affairs policies. Each member state serves as President of the Council for six months in rotation. The Parliament, the only directly elected EU institution, has significant power over budgetary matters and can amend or reject certain legislation approved by the Council. The Court has a role similar to that of the U.S. Supreme Court and is the final authority on the interpretation of EU treaties and laws.
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