TOPIC: EUROPEAN UNION.

Objective: The aim of this assignment is to study briefly about

European Union’s Aims and Value, Function, Important institutions
and challenges of European Union.

INTRODUCTION
The European Union (EU) is an economic and political union between 27
member countries, located primarily in Europe. Committed to regional
integration, the EU was established by the Treaty of Maastricht on 1 November
1993 upon the foundations of the European Communities." With over 500
million citizens, the EU combined generates an estimated 28% share (US$
16.45 trillion in 2009) of the nominal gross world product and about 21.3%
(US$14.8 trillion in 2009) of the PPP gross world product.
The EU has developed a single market through a standardised system of laws
which apply in all member states, ensuring the free movement of people, goods,
services, and capital. It maintains common policies on trade, agriculture,
fisheries and regional development. Sixteen member states have adopted a
common currency, the euro, constituting the Eurozone. The EU has developed a
limited role in foreign policy, having representation at the World Trade
Organization, G8, G-20 major economies and at the United Nations. It enacts
legislation in justice and home affairs, including the abolition of passport
controls by the Schengen Agreement between 22 EU and 3 non-EU states,
As an international organisation, the EU operates through a hybrid system of
supranationalism and intergovernmentalism. In certain areas, decisions are
made through negotiation between member states, while in others, independent
supranational institutions are responsible without a requirement for unanimity
between member states. Important institutions of the EU include the European
Commission, the Council of the European Union, the European Council, the
Court of Justice of the European Union, and the European Central Bank. The
European Parliament is elected every five years by member states" citizens, to
whom the citizenship of the European Union is guaranteed.
The EU traces its origins from the European Coal and Steel Community formed
among six countries in 1951 and the Treaty of Rome formed in 1957 by the
same states. Since then, the EU has grown in size through enlargement, and in
power through the addition of policy areas to its remit.

 Aims and values of European Union

Aims
The aims of the European Union within its borders are:
a. Promote peace, its values and the well-being of its citizens
b. Offer freedom, security and justice without internal borders, while also
taking appropriate measures at its external borders to regulate asylum and
immigration and prevent and combat crime
c. Establish an internal market
d. Achieve sustainable development based on balanced economic growth
and price stability and a highly competitive market economy with full
employment and social progress
e. Protect and improve the quality of the environment
f. Promote scientific and technological progress
g. Combat social exclusion and discrimination
h. Promote social justice and protection, equality between women and men,
and protection of the rights of the child
i. Enhance economic, social and territorial cohesion and solidarity among
EU countries
j. Respect its rich cultural and linguistic diversity
k. Establish an economic and monetary union whose currency is the euro

The aims of the EU within the wider world are:

a. Uphold and promote its values and interests

b. Contribute to peace and security and the sustainable development of the
Earth
c. Contribute to solidarity and mutual respect among peoples, free and fair
trade, eradication of poverty and the protection of human rights
d. Strict observance of international law
The EU’s aims are laid out in article 3 of the Lisbon Treaty.
Values
The European Union is founded on the following values:

1. Human dignity
Human dignity is inviolable. It must be respected, protected and
constitutes the real basis of fundamental rights.
2. Freedom
Freedom of movement gives citizens the right to move and reside freely
within the Union. Individual freedoms such as respect for private life,
freedom of thought, religion, assembly, expression and information are
protected by the EU Charter of Fundamental Rights.
3. Democracy
The functioning of the EU is founded on representative democracy. A
European citizen automatically enjoys political rights. Every adult EU
citizen has the right to stand as a candidate and to vote in elections to the
European Parliament. EU citizens have the right to stand as a candidate
and to vote in their country of residence, or in their country of origin.
4. Equality
Equality is about equal rights for all citizens before the law. The principle
of equality between women and men underpins all European policies and
is the basis for European integration. It applies in all areas. The principle
of equal pay for equal work became part of the Treaty of Rome in 1957.
5. Rule of law
The EU is based on the rule of law. Everything the EU does is founded on
treaties, voluntarily and democratically agreed by its EU countries. Law
and justice are upheld by an independent judiciary. The EU countries
gave final jurisdiction to the European Court of Justice – its judgments
have to be respected by all.

6. Human rights
Human rights are protected by the EU Charter of Fundamental Rights.
These cover the right to be free from discrimination on the basis of sex,
 racial or ethnic origin, religion or belief, disability, age or sexual
orientation, the right to the protection of your personal data, and the right
to get access to justice.

The EU’s values are laid out in article 2 of the Lisbon Treaty and the EU
Charter of Fundamental Rights.
In 2012, the EU was awarded the Nobel Peace Prize for advancing the causes of
peace, reconciliation, democracy and human rights in Europe.

 European Union Functions

The European Union (EU) serves several functions, including:

• Economic Integration: The EU aims to create a cohesive economic entity
among its member nations, allowing for the free flow of goods, services, and
capital across borders, leading to a more efficient distribution and use of
resources.

• Financial Support: The EU provides financial resources to its member

nations, offering assistance and investment through bailouts and loans when
needed.

• Political Implications: The EU sets expectations for member countries

regarding areas like human rights and the environment, with political
consequences. Non-compliance may result in cutbacks, austerity measures, or
conditions for receiving aid.
• Free Trade: The EU promotes free trade within its single market and
endeavours to liberalize world trade beyond its borders, making it the world’s
largest trade bloc.
• Humanitarian Aid: The EU is committed to Providing humanitarian aid to
those affected by natural and man-made disasters globally, supporting millions
of people each year and being the leading donor of humanitarian aid.

• Diplomacy and Security: The EU plays a vital role in diplomacy, working to

foster stability, security, prosperity, democracy, and the rule of law at the
international level.

Institutions of European Union

The European Union has 7 main decision-making institutions. Each institution

has functions that have been set out in the Treaty on European Union.
The legislative, or law making, function of the EU is carried out by 3
institutions:
 The European Parliament
 The Council of the European Union
 The European Commission
The overall policy direction and priorities of the EU is decided by:
 The European Council
The judicial wing of the EU, responsible for settling disputes and enforcing EU
law is:
 The Court of Justice of the European Union
The Court of Auditors oversees budgets and represents the interests of EU
taxpayers, while the European Central Bank manages the euro and implements
EU monetary policy.

 The European Parliament

The European Parliament is part of the legislative, or law making, process in the
EU.
Most proposed laws must be approved by the European Parliament and the
Council of the European Union before they can become law.
The Parliament has 705 seats and elections to fill these seats are held in all
member states every 5 years. The European Parliament is the only directly
elected body within the EU.
The Parliament elects its own president, along with 14 vice-presidents for a
term of 2.5 years. The president represents the Parliament to other EU
institutions.

 The Council of the European Union

The Council of the European Union shares decision-making power with the
European Parliament, particularly in the areas of law-making and budget
approval.
The Council consists of the government minister of each state who is
responsible for whichever topic the Council is discussing. For example, if
agriculture is being discussed, the Council will be made up of the ministers with
responsibility for agriculture of each member state (the council of ministers).
The presidency of the Council rotates every 6 months.

 The European Council

The European Council is a separate institution to the Council of the European
Union.
The European Council consists of the heads of government of each EU member
state, the European Council President (currently Charles Michel) and the
President of the European Commission (Ursula von der Leyen).
The Council meets at least twice every 6 months in Brussels. It does not have
the power to initiate or pass laws. Instead, it decides on strategies and policies.
The European Council appoints the president, vice-president and executive
members of the European Central Bank.

 The Court of Justice of the European Union

The Court of Justice of the European Union (CJEU) is the judicial institution of
the EU. This means that it deals with disputes between parties that involve EU
law.
It is made up of the European Court of Justice, the General Court and some
specialised courts.
The General Court is the court of first instance. The European Court of Justice
is the highest court of the EU.

 The Court of Auditors

The Court of Auditors audits the accounts and oversees the budgets of EU
institutions.
It aims to improve financial management of EU money and to report to EU
citizens on how EU money is used. Its annual report is published in the Official
Journal of the European Union.
The Court of Auditors is based in Luxemburg and is composed of one member
from each EU country. Each member state suggests a candidate who is
appointed by the Council of the European Union in consultation with the
European Parliament for a renewable term of 6 years.
The president of the Court of Auditors is currently Tony Murphy.

 The European Central Bank

The European Central Bank (ECB) is the central bank for the euro area and is
responsible for conducting monetary policy for the euro area.
The ECB is part of the European System of Central Banks, which also includes
the national central banks of all EU member states, whether they have adopted
the euro or not.
It is also part of the Eurosystem, along with the central banks of the countries
from the euro area.
The current president of the European Central Bank is Christine Lagarde.
 Challenges Associated with EU
a. It is no longer self-evident that all old member states will stay in the
Union. The Treaty of Lisbon gave the members the right to leave the EU.
The financial crisis has hit Greece so hard that many people have
predicted for a long time that the country will exit from the Union.

b. There is also demand for standard labour agreements on terms of

employment and working conditions that would apply across Europe and
even worldwide. As a member of the World Trade Organisation, the
European Union is in a position to influence developments worldwide.

c. European leaders now fear that the transatlantic security guarantee will
centre not on alliances and common interests but purchases of American
technology and materiel.

d. Brexit: EU has imposed too many rules on business and charged billions
of pounds a year in membership fees for little in return.

e. The EU added eight eastern European countries in 2004, triggering a

wave of immigration that strained public services. In England and Wales,
the share of foreign-born residents had swelled to 13.4 percent of the
population by 2011, roughly double the level in 1991.

f. Brexit supporters wanted Britain to take back full control of its borders
and reduce the number of people coming here to live and/or work.

g. They argued that the EU is morphing into a super-state that increasingly

impinges on national sovereignty. Britain has global clout without the
bloc, they said, and can negotiate better trade treaties on its own.

h. Withdrawal from the EU is governed by Article 50 of the Treaty on

European Union.

i. A deal between UK & EU that gives it control over immigration and also
preferential access to the EU’s tariff-free single market of 500 million
 people (UK), the economic backbone of the world’s largest trading bloc is
rejected by Germany & other EU leaders.

Conclusion
The European Union (EU) stands as a remarkable example of regional
cooperation and integration, with a commitment to promoting peace,
security, and prosperity among its member states. The EU’s ability to address
complex challenges through collective action and shared values is a
testament to the strength of its institutions and the resilience of its policies.
The EU’s emphasis on effective multilateralism and the rule of law
demonstrates its role as a pivotal player on the global stage, striving to
uphold human rights and democratic principles. Despite challenges such as
economic disparities, political disagreements, and external pressures, the EU
continues to strive towards deeper integration and unity among its member
states. The EU continues to strive towards deeper integration and unity
among its member states. The future of the EU may hold further expansion,
increased global influence, and the continued pursuit of a harmonious and
integrated Europe.
References
a. Malhotra S.K., International relations, published by BLACK PRINT
INDIA INC 2015
b. [Link]
c. [Link]