tradingkey.logo

European Commission

TradingKeyTradingKeyTue, Apr 15

The European Commission (“EC”) serves as the politically independent executive branch of the European Union. It is solely responsible for formulating proposals for new European legislation and executing the decisions made by the European Parliament and the Council of the EU.

The European Parliament functions as the EU’s legislative body, with members directly elected by EU citizens every five years. In the Council of the EU, government ministers from each EU member state convene to discuss, modify, and adopt laws, as well as to coordinate policies. These ministers have the authority to commit their governments to the actions agreed upon during these meetings. Together with the European Parliament, the Council acts as the primary decision-making entity of the EU.

The European Commission's role is to advocate for the general interest of the EU by proposing and enforcing legislation, as well as implementing policies and managing the EU budget.

Proposes new laws

The Commission is tasked with developing laws for member states and ensuring their enforcement. Based in Brussels, it is the only EU institution authorized to draft legislation. The Commission employs over 32,000 staff members, with operational costs amounting to €3.6 billion this year. Once its proposals receive approval from the European Parliament and a council of 28 ministers from the EU states, they can be enacted into law. The proposed laws encompass a wide range of areas.

Manages EU policies & allocates EU funding

The Commission sets EU spending priorities in collaboration with the Council and Parliament, prepares annual budgets for their approval, and oversees the expenditure of funds, all under the scrutiny of the Court of Auditors.

Enforces EU law

Alongside the Court of Justice, the EC ensures the proper application of EU law across all member countries.

Represents the EU internationally

The EC represents all EU nations in international forums, particularly in trade policy and humanitarian aid, and negotiates international agreements on behalf of the EU.

The political leadership of the Commission is provided by a team of 27 Commissioners, one from each EU country, led by the Commission President, who assigns responsibilities for various policy areas. The College of Commissioners consists of:

  • The President of the Commission
  • 8 Vice-Presidents
  • 3 Executive Vice-Presidents
  • The High Representative of the Union for Foreign Affairs and Security Policy
  • 18 Commissioners, each overseeing a specific portfolio

The daily operations of the Commission are managed by its staff, which includes lawyers, economists, and others, organized into departments known as Directorates-General (DGs), each responsible for a particular policy area.

Appointing the President

Every five years, the 28 commissioners are replaced. New commissioners, one from each country, along with a president of the commission, are nominated for a vote by a newly-elected European Parliament. All candidates must receive approval from a clear majority of the parliament, which consists of 751 MEPs. The candidate is proposed by national leaders in the European Council, taking into account the results of the European Parliament elections. To be elected, the candidate must secure the support of a majority of the European Parliament members.

Selecting the team

The presidential candidate selects potential Vice-Presidents and Commissioners based on recommendations from EU countries. This list of nominees must be approved by national leaders in the European Council. Each nominee presents their vision and answers questions before the European Parliament, which then votes on whether to accept the nominees as a team. Ultimately, they are appointed by the European Council through a qualified majority. The current Commission's term is set to conclude on 31 October 2024.

Strategic planning

The President outlines the policy direction for the Commission, enabling the Commissioners to collectively determine strategic objectives and produce the annual work program.

Collective decision making

Decisions are made based on collective responsibility, with all Commissioners being equal in the decision-making process and equally accountable for the outcomes. They do not possess individual decision-making powers, except in specific authorized situations. The Vice-Presidents represent the President and coordinate efforts within their areas of responsibility, collaborating with several Commissioners.

Priority projects are established to ensure that the College operates cohesively and flexibly. Commissioners assist Vice-Presidents in presenting proposals to the College. Generally, decisions are reached by consensus, but votes can also occur, with decisions made by simple majority, where each Commissioner has one vote.

The relevant Directorate-General, led by a Director-General accountable to the corresponding Commissioner, then takes on the subject, typically in the form of draft legislative proposals. These proposals are resubmitted to the Commissioners for adoption during their weekly meeting, after which they become official and are forwarded to the Council and the Parliament for the subsequent stage in the EU legislative process.

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.
KeyAI