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Council of the European Union

TradingKeyTradingKeyTue, Apr 15

In the Council of the European Union, government ministers from each EU member state convene to discuss, modify, and adopt legislation, as well as to coordinate policies. This body is informally referred to as the EU Council.

The Council of the European Union establishes the overall political direction and priorities of the EU. It is not one of the EU's legislative institutions, meaning it does not negotiate or adopt EU laws. Instead, it outlines the EU's policy agenda, typically by adopting "conclusions" during European Council meetings that highlight issues of concern and proposed actions.

The ministers possess the authority to commit their governments to the actions agreed upon during these meetings. Alongside the European Parliament, the Council serves as the primary decision-making body of the EU.

The Council of the European Union should not be confused with:

  • European Council: Quarterly summits where EU leaders convene to set the broad direction of EU policymaking.
  • Council of Europe: An organization that is not part of the EU.

What does the Council do?

  • Negotiates and adopts EU laws in collaboration with the European Parliament, based on proposals from the European Commission.
  • Coordinates the policies of EU member states.
  • Develops the EU's foreign and security policy in line with European Council guidelines.
  • Concludes agreements between the EU and other countries or international organizations.
  • Adopts the annual EU budget in conjunction with the European Parliament.

How is the Council of the European Union structured?

The members of the European Council include the heads of state or government from the 27 EU member states, the President of the European Council, and the President of the European Commission. The High Representative of the Union for Foreign Affairs and Security Policy also participates in European Council meetings when foreign affairs are on the agenda.

There are no fixed members of the EU Council. Instead, the Council convenes in 10 different configurations, each corresponding to the specific policy area being discussed. Depending on the configuration, each country sends its minister responsible for that area. For instance, during a meeting focused on economic and financial affairs (the "Ecofin Council"), each country is represented by its finance minister.

Who chairs the meetings?

The Foreign Affairs Council has a permanent chairperson, the EU High Representative for Foreign Affairs and Security Policy. All other Council meetings are chaired by the relevant minister from the country holding the rotating EU presidency. For example, any Environment Council meeting during Estonia's presidency will be led by the Estonian environment minister.

Overall consistency is maintained by the General Affairs Council, which is supported by the Permanent Representatives Committee. This committee consists of the Permanent Representatives of EU countries to the EU, effectively serving as national ambassadors to the EU.

Eurozone countries

Eurozone countries coordinate their economic policies through the Eurogroup, which is made up of their economy and finance ministers. The Eurogroup meets the day before Economic and Financial Affairs Council meetings. Agreements reached during Eurogroup meetings are formally decided upon in the Council the following day, with only ministers from Eurozone countries voting on those matters.

How does the Council of the European Union work?

The European Council primarily makes decisions by consensus. If a vote is necessary, neither the President of the European Council nor the President of the Commission participates. All discussions and votes are conducted in public.

To pass decisions, a qualified majority is typically required: 55% of countries (which translates to 15 countries out of the current 27) representing at least 65% of the total EU population. To block a decision, at least 4 countries are needed, representing at least 35% of the total EU population.

In certain specific cases outlined in the EU treaties, decisions are made by unanimity or by qualified majority. Sensitive issues such as foreign policy and taxation necessitate a unanimous vote (all countries in favor). A simple majority is sufficient for procedural and administrative matters.

Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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