EU Politics CHAPTER 13: Other Institutions

Outline 1) European Economic and Social Committee (EESC) 2) Committee of the Regions (CoR) 3) European Agencies 4) European Investment Bank (EIB) 5) European Central Bank (ECB) 6) Court of Auditors

1) European Economic and Social Committee (EESC) “A bridge between Europe and organized civil society »

EESC: Membership 344 members Elected for 5 years (renewable) Proposed by national governments and appointed by the Council of Ministers

EESC: Membership (contd) Membership divided into 3 groups: Employers Employees Various Interests

EESC : Organisation

EESC: Functions A forum to exchange views and ideas Consultative organ It issues opinions on several EU matters

EESC : Functions (Contd) Opinions are issued in 3 circumstances : Mandatory referral //Art.304 of the TFEU : “The Committee shall be consulted by the European Parliament, by the Council or by the Commission where the Treaties so provide”. Optional consultation //Art.304 of the TFEU : “in all cases in which they consider it appropriate”. Own initiative

2) Committee of the Regions (CoR)

CoR: Origins Regional issue  important role in the EU Reasons : Variations in wealth and income between MS => compensatory measures ERDF (1975) => attraction of funds Pressure by transnational organisations Reponse of Commission  CoR

CoR: Membership Renewable 5-year term office by the Council of Ministers Basis: proposal from MS 300 TFEU: “ The Committee of the Regions shall consist of representatives of regional and local bodies who either hold a regional or local authority electoral mandate or are politically accountable to an elected assembly”

CoR: Organization Planning by 60 member Bureau  CoR President  1st Vice President  27 Vice President 2-year term  27 Members  Chairs of the 4 political groups

CoR: Functions and Powers Advisory nature Art.307 TFEU: “ The Committee of the Regions shall be consulted by the European Parliament, by the Council or by the Commission where the Treaties so provide and in all other cases, in particular those which concern cross-border cooperation, in which one of these institutions considers it appropriate.” Time limit to give opinion, if not  cannot prevent EP, Council or Commission from proceeding

3) European Agencies

European Agencies: Notion -> Organizations that undertake policy functions even if they are not part as such of the political and administrative systems

European Agencies: Origins 1975 Reflects : “the existence of functional needs that are not met by centralized policy-making institutions”

European Agencies: Organisation 40 EU Agencies Two forms : Executive agencies  limited period Regulatory agencies  more important politically ; independent ; own legal basis

4) European Investment Bank (EIB)

EIB: Origins 1958, under EEC Treaty Members: MS Luxembourg

EIB: Responsibilities and Functions Art. 309 TFEU: “The task of the European Investment Bank shall be to contribute, by having recourse to the capital market and utilising its own resources, to the balanced and steady development of the internal market in the interest of the Union. For this purpose the Bank shall, operating on a non-profit-making basis, grant loans and give guarantees which facilitate the financing of the following projects in all sectors of the economy”  Source of investement finance for projects that further EU goals Policy framed within COPs  objective

EIB: Responsibilities and Functions (contd) 2 conditions for EIB the granting of loans: 1)Project in compliance with objectives of art. 309 TFEU, COP and credit Directives from Bank’s Board of Governors: 2) Projects financially and technically viable + adequate security for loans  EIB is not a loss- making body

EIB: Responsibilities and Functions (contd) EIB’s loans must be financed from its own capital  2 sources: 1)Paid-in or due-to-be-paid-in capital by MS 2) Borrowing on capital markets inside and outside EU

EIB: Organisation 3 main decision-making bodies: Board of Governors Board of Directors Management Committee

5) European Central Bank (ECB)

ECB: Origins Responsible for the day-to-day management of common monetary policies BUT: subject to some political direction and accountability.

ECB: Objectives and Tasks Art.127 TFEU : ”The primary objective of the European System of Central Banks…shall be to maintain price stability(…).”

ECB: Objectives and Tasks (contd)

ECB: Organisation Art.129 TFEU :“The ESCB shall be governed by the decision-making bodies of the ECB which shall be the Governing Council and the Executive Board”.

ECB: Organisation(contd) Peter Praet

6) Court of Auditors

Ct of Auditors: Origins 1975: Treaty Amending Certain Financial Provisions of the Treaties Maasticht Treaty: The Court becomes a community institution Luxembourg

Ct of Auditors: Membership and Organisation Members : 1 member/MS Appointment by Council of Ministers (QMV) after consultation of the EP Members must belong or have belonged to an external audit body in their country Renewable 6-year period Members act in general interest Independence Preparation and implementation of the decisions of the Court 5 audit groups Important decisions in plenary sessions

Ct of Auditors: Membership and Organisation (contd) President: Elected within the 27 members Renewable 3-year term Efficient running of the Court Representation of the Court in its external relations

Ct of Auditors: Activities Examination of all the EU revenues and expenditure accounts Provision to the Council and EP of a Statement of Assurance 2 main types of activities: 1) Audits and 2) Special reports and opinions

Ct of Auditors: Activities (contd) 1)Audits  general budget of EU  financial operations not included in the budget

Ct of Auditors: Activities (contd) 2) Special reports and opinions →On demand of EU instituions →Before the adoption of a new or updating legislation with a potentially significant financial impact

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