Institutional Structure of the European Union

The European Union distributes authority through an institutional balance rather than concentrating it in a single government. Its principal institutions represent three broad interests: EU citizens, member-state governments, and the Union as a whole, while courts, monetary authorities, and auditors perform specialised functions.

Political direction and law-making

Policy direction and legislation are divided among institutions representing governments and citizens.

• The European Council, comprising national leaders, sets the Union's general political direction and priorities but does not exercise legislative functions.
• The European Commission normally initiates EU legislation and promotes the Union's general interest.
• Under the ordinary legislative procedure, the European Parliament and the Council of the European Union jointly adopt legislation on a Commission proposal.
• The European Parliament represents EU citizens, while the Council represents member-state governments through national ministers.

Executive, budgetary and supervisory authority

The Commission performs the EU's central executive role, but it remains accountable to other institutions.

• The Commission implements policies, manages programmes and the budget, and oversees member states' application of EU law.
• Parliament exercises political scrutiny over the Commission and, together with the Council, performs budgetary functions.
• The European Court of Auditors examines EU revenue and expenditure, supporting financial accountability.
• The Council also coordinates member-state policies and exercises executive functions where the Treaties assign them.

Judicial, monetary and external decision-making

Specialised institutions exercise authority in law, monetary policy and external relations.

• The Court of Justice of the European Union ensures that EU law is interpreted and applied uniformly and reviews the legality of EU acts.
• The European Central Bank independently conducts monetary policy for the euro area, with price stability as its primary objective.
• In external agreements, the Council authorises negotiations and concludes agreements, the Commission usually negotiates, and Parliament gives consent or is consulted as required by Article 218, TFEU.
• Foreign and security policy remains more strongly controlled by the European Council and Council, reflecting the central role of member states.