The European Union

The European Union (EU) is a political and economic community of twenty-seven member states, located primarily in Europe. It was established in 1993 by the Treaty of Maastricht adding new areas of policy to the existing European Community. With almost 500 million citizens, the EU combined generates an estimated 30% share of the world's nominal gross domestic product (US$16.6 trillion) in 2007.

The EU has developed a single market through a standardized system of laws which are applied in all member states, guaranteeing the freedom of movement of people, goods, services and capital. It maintains a common trade policy, agricultural and fisheries policies, and a regional development policy. Fifteen member states have adopted a common currency, the euro. It has developed a role in foreign policy, representing its members in the World Trade Organization, at G8 summits and at the United Nations. Twenty-one EU countries are members of NATO. It has developed a role in justice and home affairs, including the abolition of passport control between many member states under the Schengen Agreement.

EU operation is a hybrid of intergovernmentalism and supranationalism. In certain areas it depends upon agreement between the member states. However, it also has supranational bodies, able to make decisions without the agreement of members. Important institutions and bodies of the EU include the European Commission, the European Parliament, the Council of the European Union, the European Council, the European Court of Justice and the European Central Bank. EU citizens elect the Parliament every five years.

Governance

The EU is based on a series of treaties which have built up the current structure by successive additions and amendments. The treaties define the broad policy goals of the organization and establish institutions with the necessary legal powers to implement those goals, including the ability to enact legislation which can directly affect all member states and their inhabitants (the principle of "direct effect"). National courts enforce the EU treaties and the laws enacted under them, as one of the conditions of membership. In the case of a conflict where a law stemming from EU legislation conflicts with another national law, the EU law is considered to take precedence (principle of 'Supremacy'). Decisions regarding EU legislation may be referred to the European Court of Justice by national courts. The EU is regulated by a number of institutions, primarily the Council of the European Union, the European Commission, and European Parliament.

The EU is often described as being divided into three areas of responsibility, called 'pillars'. The original European Community policies form the first pillar, while the second consists of Common Foreign and Security ^:i Policy. The third pillar originally consisted of Justice and Home Affairs, however owing to changes introduced by the Amsterdam and Nice -treaties, it currently only consists of Police and Judicial Co-operation in Criminal Matters. Broadly speaking, the second and third pillars can be described as the intergovernmental pillars because the supranational institutions of the Commission, Parliament and the Court of Justice play less of a role or none at all while the lead is taken by the intergovernmental Council of Ministers and the European Council. Most activities of the EU come under the first, Community pillar. This is mostly economically oriented and the supranational institutions have more influence.