European Union January 2023

The European Union (EU) is a political and economic association of 27 European sovereign states. It
traces its origins to the establishment of the European Economic Community (EEC) by six European
nations in the post-Second World War years.
The aim of the European Community was to pursue closer economic cooperation on the European
continent, with the intent of preventing the horror and destruction of two world wars from happen-
ing again. In this respect the EU has proven its worth: Western Europe has never before enjoyed such
a long period of peace. Although the EU began as a purely economic community, cooperation has
expanded in the intervening years to include areas such as asylum, migration, justice, safety, energy,
environment, and foreign policy, developing into a unique political organisation.

Key data
• 2020 Withdrawal of the United Kingdom (EU-27)
• 2013 Accession of Croatia (EU-28)
• 2012 25 EU member states sign a «fiscal pact» as part of the solution to the debt crisis
• 2007 Signing of the Treaty of Lisbon (effective 2009)
• 2007 Accession of Bulgaria and Romania (EU-27)
• 2004 European Constitutional Treaty: A draft treaty for a European Constitution does not come
into force after failing in referendums in France and the Netherlands
• 2004 Accession of Poland, Hungary, Slovenia, the Czech Republic, Latvia, Estonia, Lithuania,
Cyprus and Malta (EU-25)
• 2002 Introduction of the euro as the cash currency
• 2001 Signing of the Treaty of Nice (effective 2003)
• 1997 Signing of the Treaty of Amsterdam (effective 1999)
• 1995 Accession of Austria, Sweden, and Finland (EU-15)
• 1992 Signing of the Treaty of Maastricht (effective 1993): creation of the EU
• 1990 Reunification of Germany
• 1986 Accession of Spain and Portugal (EC-12), Single European Act (SEA)
• 1981 Accession of Greece (EC-10)
• 1973 Accession of the United Kingdom, Ireland, and Denmark (EC-9)
• 1965 Signing of the Merger Agreement (effective 1967): common institutions
• 1957 Signing of the Treaties of Rome (effective 1958): European Economic Community (EEC),
European Atomic Energy Community (EURATOM)
• 1951 Signing of the Treaty of Paris (effective 1952): European Steel and Coal Community (ECSC)

Founding of the EU of 9 May 1950, was to «make a war between France

At the end of the 1940s, in the wake of the immense and Germany not only unthinkable, but also materially
suffering and destruction caused by two world wars, impossible». The ECSC in turn made it possible for
there was a great need to ensure a lasting peace on Germany to return to the European stage on an equal
the European continent. With this in mind the French footing. Apart from the ECSC, the Treaties of Rome in
foreign minister, Robert Schuman, proposed to Ger- 1957 established the European Atomic Energy Com-
many that the important military industries of coal munity (EURATOM) and the European Economic Com-
and steel be managed in a joint market under a munity (EEC). The Merger Treaty of 1965 united the
higher-level authority. Together with Belgium, Italy, ECSC, the EEC, and EURATOM under a single institu-
Luxembourg, and the Netherlands, they founded the tional structure (Commission, Council of Ministers,
European Steel and Coal Community (ECSC) in 1951. European Parliament, European Court of Justice),
The purpose, as set forth in the Schuman declaration together forming the European Communities.

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The aim of the EC was to create an internal market institutions work more efficiently, particularly in the
with free movement of goods, people, services, and run-up to eastern enlargement, which was how the
capital. Concurrently, it expanded territorially. In inclusion of numerous Central and Eastern Euro-
1973 the United Kingdom, Ireland, and Denmark pean states was known. The treaties simplified the
joined the EC, followed by Greece in 1981 and Spain decision-making process within the EU by replacing
and Portugal in 1986. Integration gathered momen- the principle of unanimity with a qualified majority
tum again in the mid-1980s, with the Single Euro- in many areas. The joint decision-making power of
pean Act (SEA) of 1986 placing the entire area of the European Parliament was also considerably strength-
internal market under the rule of qualified majority ened.
voting, thereby creating the conditions for more effi-
cient functioning. In light of the bloodshed in the Balkan wars, the
European Council in Cologne in 1999 decided on a
Shortly thereafter, in 1989, a fundamental and unex- common European Security and Defence Policy
pected change occurred on the continent: Hungary (ESDP). The EU thereby created the necessary
opened its borders to the West, and the Wall fell in resources to respond more effectively to future
divided Berlin. This was followed by the dissolution conflicts. In particular, the ESDP takes the form of
of the Soviet Union in 1991. Following the end of the civilian and military peacekeeping operations, also
Cold War and the reunification of Germany, the beyond the European continent. The EU has
European Union was created in 1992 by the Treaty of described itself as a global actor prepared to take
Maastricht, which also introduced the three-pillar on more responsibilities (see European Security
structure, with the European Communities as the first Strategy 2003 «A Secure Europe in a Better World»).
pillar, adding the Common Foreign and Security Pol-
icy (CFSP) as the second pillar, and Justice and Home In 2009, the Treaty on European Union (TEU) intro-
Affairs (JHA) as the third pillar, which enhanced coop- duced the possibility for member states to withdraw
eration in the area of law enforcement and home from the EU – contained in Article 50 of the Treaty.
affairs. In the first pillar the decisions of the EC were On 23 June 2016, the majority of the United
mostly made according to the principle of qualified Kingdom electorate voted to leave the EU. On
majority voting, whereas in the second and third pil- 29 March 2017 the United Kingdom notified the
lars intergovernmental cooperation was the rule and EU of its withdrawal from the EU. After the with-
decisions were reached unanimously. drawal date was postponed three times, lastly on
31 October 2019, the United Kingdom left the EU
In 1995, Austria, Finland, and Sweden – all former on 31 January 2020.
members of the European Free Trade Association
(EFTA) – joined the EU. This brought the total num- The enlargement process
ber of EU member states to 15. The Treaties of In 2004 the EU carried out the largest expansion
Amsterdam (1997) and Nice (2001) amended the round in its history, as Poland, Hungary, Slovenia, the
Treaty of Maastricht with the aim of making the EU Czech Republic, Slovakia, Latvia, Estonia, Lithuania,
Cyprus, and Malta joined the Union. In 2007 two
European Economic and Monetary Union more eastern European countries became members
The Treaty of Maastricht also initiated an Economic and when Bulgaria and Romania acceded. Croatia joined
Monetary Union (EMU). The euro was introduced as an account-
the EU on 1 July 2013. The prospect of joining the
ing currency in 1999. From that date the European Central Bank
operated a single monetary policy for the entire euro area. At EU and accession itself played an important role in
the beginning of 2002 the euro was introduced as a cash the peaceful transition of candidate countries to
currency and established itself – at least until the debt crisis of democracy and social market economies. The eastern
2010 – as a strong and stable single currency. Today it is the
enlargement facilitated overcoming the ideological
official currency in all «old» EU states except Denmark and
Sweden. Of the member states that have joined since 2004, the division of Europe created by the Cold War and
first country to meet the necessary convergence criteria was represented a decisive step towards greater stability
Slovenia, which entered the euro area in 2007. Cyprus and and shared prosperity in Europe. In the process, the
Malta joined in 2008, followed by Slovakia in 2009, Estonia in
EU grew to encompass more than 440 million
2011, Latvia in 2014, Lithuania in 2015 and Croatia in 2023.
There are now 20 participating countries in the euro area. citizens. It has 24 official languages, including Irish
Within the framework of an intergovernmental «fiscal pact» Gaelic since 2007. Moreover, diverse regional lan-
signed in March 2012, the 25 EU members committed guages have been recognised by the EU, for example,
themselves to strengthening budgetary discipline and
Catalan and Basque. The member states also have
introducing a debt brake. Only the United Kingdom and the
Czech Republic have remained outside the pact. the right to apply for translations of certain docu-
ments into these regional languages.

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However, where does Europe end? Where do its Given the serious conflicts in the Balkans and Africa
boundaries lie? This question is particularly relevant in the 1990s, the forging of a common defence pol-
in the Western Balkans and in Eastern Europe. In this icy increasingly became the focus of the CFSP. For this
region are several candidate countries as well as reason the European Security and Defence Policy
other states that have expressed interest in acces- (ESDP) was created as an integral part of the CFSP. It
sion. The acceptance of potential candidates is sub- was later transferred to the Common Security and
ject to strict political, economic, and legal conditions, Defence Policy (CSDP) in the Treaty of Lisbon (2009).
known as the Copenhagen criteria. Today, civilian experts, military troops or police forces
may be deployed by the CSDP to carry out crisis man-
Foreign policy agement and peacekeeping missions. Currently, the
Since its founding in the post-Second World War EU is implementing 11 civilian and seven military
years, the European Union has gradually expanded peacekeeping missions aimed at capacity building in
its foreign policy. Through a joint approach in foreign the army, police, customs and judiciary, where this is
and security policies, EU member states have pursued requested by the states concerned. In this context,
concerted action to safeguard the fundamental inter- the EU often works closely with international organ-
ests, values, safety, independence, and integrity of isations and third countries. Switzerland is currently
the Union. In its foreign and security policy, the EU involved in the ‘EUFOR Althea’ military operation in
Bosnia and Herzegovina and in the ‘EULEX’ civilian
Enlargement process: next steps
mission in Kosovo. The collaboration is selective and
In 2003, the EU extended the prospect of joining the EU to the based on voluntary ad hoc agreements. It is compat-
Western Balkan countries, provided that the candidate countries ible with Swiss neutrality. The prerequisite for par-
fulfil the necessary criteria. The EU is already negotiating ticipation in military CSDP missions is that there is a
accession with Serbia, Montenegro, Albania and North
Macedonia. In June 2022, Ukraine and Moldova also became
mandate from the UN or the OSCE.
candidate countries for EU accession. For Bosnia and Herzego-
vina, Kosovo and, since June 2022 Georgia, accession may be Treaty of Lisbon
on the horizon. Within the EU, apart from that of the Balkan In October 2004 the European Council signed the
states, there is also controversy over Turkey’s accession:
although accession negotiations started in 2005, the Commis-
Treaty establishing a Constitution for Europe, the
sion’s latest accession report on the situation in Turkey speaks, goal of which was to create a constitution for
among other things, of a serious step backwards by Turkey Europe to replace the multitude of existing treaties
regarding the independence of the judiciary and freedom of and more clearly restructure the legal foundation of
expression in the country.
the EU. The aim was to make the EU more efficient
in decision-making, more transparent, more demo-
cratic, and closer to citizens. But in May and June
has set itself the task of preserving peace, strength-
2005 the Constitutional Treaty was rejected in pop-
ening international security, and promoting interna-
ular referendums in France and the Netherlands. In
tional cooperation, as well as of developing and con-
June 2007 the heads of state and governments of
solidating democracy, the rule of law, and respect for
the EU member states agreed in principle to replace
human rights and basic freedoms.
the original Constitutional Treaty with a new EU
In the 1970s the EU began providing worldwide Reform Treaty. The most important institutional
humanitarian assistance to those in need and has since innovations of the Constitutional Treaty were main-
come to play a leading role in the field, particularly in tained so that the decision-making ability, effi-
development aid and emergency assistance following ciency, and proximity to the citizenry would be
natural disasters, where it is the top global donor. In adequately guaranteed in a growing EU. On 13
1993, the EU established a Common Foreign and December 2007, the EU member states signed the
Security Policy (CFSP) within the framework of the new treaty in Portugal, which became known as the
Treaty of Maastricht to decide upon joint measures. Treaty of Lisbon. The treaty was to be ratified by all
Important decisions require unanimity by all member member states by 2009. However, in the first vote
states in the European Council or the Council of the on the treaty, in June 2008, Irish voters rejected it.
European Union. Under the Treaty of Lisbon (2009), Following concessions made by the European Coun-
responsibility for implementation of the CFSP is held cil to Ireland, the Irish government called a new vote
by the European External Action Service (EEAS) under on 2 October 2009, in which the treaty was
the leadership of the High Representative of the Union endorsed. After ratification of the treaty by Poland
for Foreign Affairs and Security Policy, as well as the and lastly the Czech Republic, it came into force on
diplomatic services of the EU member states. 1 December 2009.

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 Council of the EU (committee of ministers in various
Treaty of Lisbon: key points
constellations, also referred to as the Council or Coun-
• Proximity to citizens and democracy: The European
Parliament, which represents the citizens of the EU, received cil of Ministers, has continued with a semi-annual
more co-decision rights. The European Citizens’ Initiative rotating presidency held by a member state. The For-
makes it possible for citizens who have gathered one million eign Affairs Council is an exception; it is chaired by the
signatures from nationals of at least one-quarter of the EU
High Representative of the Union for Foreign Affairs
member states to call directly on the EU Commission to
make a legislative proposal. Furthermore, the Charter of and Security Policy.
Fundamental Rights is declared legally binding by reference
to the Treaty on European Union (TEU). Institutions
• Capacity to act and transparency: The use of qualified
European Council
majority voting in the Council of Ministers has been
expanded to more policy areas and newly defined. Taking The European Council is the highest political steering
effect in 2014 and gradually imple-mented until 2017, committee of the EU. It is composed of the heads
qualified voting majority refers to a double majority of at of state or government of the member states, the
least 55% of all member states comprising at least 65% of
President of the European Commission, and its own
the population. The European Council gained the status of
an independent EU institution headed by a specifically President. The European Council defines the general
appointed president. The president is appointed for a two political priorities of the EU and provides important
and a half year term and may be reappointed once. The post momentum for its development. It also decides on
of High Representative of the Union for Foreign Affairs and
the foreign policy positions of the EU. The European
Security Policy has been newly created to be the main
coordinator of EU foreign policy. The High Representative is Council has had a permanent President since the
assisted by the European External Action Service (EEAS), Treaty of Lisbon entered into force. The President
which commenced work on 1 December 2010. The EEAS is does not hold any other political office: his or her task
composed of officials of the EU and the national diplomatic
is to ensure the continuity of the work of the Euro-
services of member states. The purpose of this structure was
to make EU foreign policy more coherent and consistent. pean Council, which meets at least four times
• Simplification of structure: The three-pillar system of the EU annually.
has been merged into the EU. The EU has obtained a http://www.european-council.europa.eu/home-page?lang=en
consolidated legal personality, which allows it to enter into
contracts with third countries such as Switzerland.
• Federalism and division of powers: The division of compe- Council of the European Union
tences between the EU and its member states has been The Council of the European Union – also known as
clarified and simplified. At the same time, the role of the Council of Ministers or the Council – is the
national parliaments in the EU’s legislative process has been
central legislative and decision-making body of the
strengthened.
• Charter of Fundamental Rights: The Charter of Fundamental EU. The Council adopts new EU legislation, usually
Rights of the European Union was legally equated to the EU together with the Parliament, and concludes inter-
Treaties by the Treaty of Lisbon. It has since become binding national agreements on behalf of the EU. The
for all member states in the application of EU law.
members of the Council of Ministers are ministers of
the member states but not fixed as such: each coun-
try sends the minister for the policy being discussed
The Treaty of Lisbon did not replace earlier treaties. (i.e. the agricultural minister on agricultural issues).
Instead, it amended the treaties that form the consti- The presidency of the Council is rotated every six
tutional basis of the EU, which were newly renamed months among member states. Most decisions are
the Treaty on European Union (TEU) and the Treaty on taken by a qualified majority (ordinary legislative pro-
the Functioning of the European Union (TFEU). The cedure). The Council of Ministers adopts the general
Treaty of Lisbon abolished the existing three-pillar annual budget jointly with the European Parliament.
model and replaced the European Community with http://www.consilium.europa.eu/homepage?lang=en
the European Union. The Treaty of Lisbon created the
post of a permanent President of the European Coun- European Parliament
cil (committee of heads of state and government). The Since 1979 the citizens of the EU member states have
President chairs EU summits, which are held at least directly elected their representatives to the European
four times a year. In the area of Common Foreign and Parliament for a five-year term. It is a professional par-
Security Policy, the High Representative of the Union liament with of a total of 705 members elected across
for Foreign Affairs and Security Policy, together with the 27 member states of the enlarged European Union.
the President of the European Council, represents the The Parliament meets in its entirety one week per
EU’s foreign policy. The High Representative is also one month in Strasbourg and three weeks per month in
of the Vice-Presidents of the European Commission. Brussels. The seating arrangement in the hall is based
Whereas the European Council now has a permanent on party affiliation, not nationality. The European Par-
president who is elected for two and a half years (with liament was given significantly more power under the
the possibility of a single extension of this term), the Treaty of Lisbon, for instance it was recently delegated

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the authority to approve EU agreements with third bourg, it is the highest judicial authority of the EU.
countries. The Parliament shares decision-making The Court is responsible for ensuring that EU legisla-
authority with the Council of Ministers with regard to tion and treaties are uniformly interpreted and
the creation of new EU law and the adoption of the applied. The CJEU consists primarily of the Court
general budget. The Council of Ministers is a control- (27 judges and 11 advocates-general) and the Court
ling organ in that it approves or rejects the appoint- of First Instance (27 judges). The judges and advoca-
ment of the Commission as a whole, and has the tes-general are appointed by the governments of the
power to force the Commission as a body to resign. member states for six-year terms.
http://www.europarl.europa.eu/portal/en http://curia.europa.eu/jcms/jcms/Jo2_6999/

European Commission European Court of Auditors

The European Commission is responsible for the day- The European Court of Auditors has its seat in
to-day administration of the EU. It has the sole right Luxembourg and is responsible for auditing the
to formally propose new EU legislation, but it is the revenues and expenditures of EU institutions. It
European Parliament and the Council of Ministers checks for sound financial management and assists
that jointly adopt it. The European Commission the Council of Ministers and the European Parliament
manages common EU policies, for instance, in the with budgetary and accounting matters.
areas of agriculture and regional politics. It also moni- http://www.eca.europa.eu/en/Pages/ecadefault.aspx
tors member states’ compliance with EU law and the
budget. The President of the European Commission European Central Bank
is chosen by the governments of member states, The European Central Bank (ECB), headquartered in
while the other commissioners are designated by Frankfurt am Main, is responsible for the monetary
their respective national governments and confirmed policy of the Economic and Monetary Union, the
in consultation with the European Commission Pre- euro area. The aim of ECB policy is to maintain price
sident. The European Parliament approves the choice stability within the euro area, to support economic
of EC commissioners and President as a collegium. growth and thereby to secure jobs. The ECB is mana-
http://ec.europa.eu/index_en.htm ged by an executive board composed of six members
who are elected for a term of eight years. The mem-
Court of Justice of the European Union bers may not be re-elected. The executive board is
The Court of Justice of the European Union, CJEU supported by a governing council and a general
(formerly known as the European Court), was re- council.
named under the Treaty of Lisbon. Based in Luxem- https://www.ecb.europa.eu/ecb/html/index.en.html