Skip to main content
← Back to E Definitions

European commission

What Is European Commission?

The European Commission is the executive arm of the European Union (EU), serving as its politically independent body responsible for proposing legislation, enforcing EU treaties, and implementing policies. It operates as a cabinet government, comprising a team of Commissioners—one from each EU member states—and belongs to the broader category of supranational organizations within the context of global economic integration. The European Commission plays a central role in the daily functioning and strategic direction of the EU.

History and Origin

The genesis of the European Commission can be traced back to the post-World War II era, with the aim of fostering peace and economic cooperation in Europe. Its conceptualization emerged from Robert Schuman's proposal on May 9, 1950, which laid the groundwork for the European Coal and Steel Community (ECSC). The ECSC, established by the Treaty of Paris in 1951, featured an executive body known as the "High Authority." This High Authority, chaired by Jean Monnet, was the precursor to the modern European Commission. In 1958, the Treaties of Rome created two new communities, the European Economic Community (EEC) and the European Atomic Energy Community (Euratom), each with its own "Commission." These three executive bodies ultimately merged in 1967 to form a single Commission for what became known as the European Communities. The European Commission was formally established on January 16, 1958.,,

9##8 Key Takeaways

  • The European Commission is the executive branch of the European Union, responsible for proposing and enforcing EU law.
  • It is composed of a College of 27 Commissioners, one from each EU member state, acting independently of national governments.
  • The Commission oversees the implementation of EU budgetary policy and manages EU funds.
  • It acts as the "guardian of the treaties," ensuring EU law is correctly applied across all member states.
  • The European Commission represents the EU on the international stage, particularly in areas of trade agreements and humanitarian aid.

Interpreting the European Commission

The European Commission is central to understanding how the EU’s policies are shaped and implemented. As the sole body with the power to propose new EU laws, it initiates the legislative process for the European Parliament and the Council of the European Union. Its interpretations are reflected in its policy proposals, enforcement actions, and budget management. For example, the Commission's interpretation of free movement principles directly impacts regulations concerning the single market and consumer protection. Its assessments of national compliance with EU directives often lead to infringement procedures, underscoring its role in upholding the rule of law within the Union.

Hypothetical Example

Imagine a new digital service that operates across multiple EU member states. If this service appears to be engaging in anti-competitive practices, such as abusing a dominant market position or forming a cartel, the European Commission's Directorate-General for Competition policy would initiate an investigation. The Commission would gather evidence, consult with affected parties, and determine if EU competition rules have been violated. If a violation is found, the European Commission could impose significant fines and order the company to change its business practices, thereby ensuring fair competition within the EU's single market.

Practical Applications

The European Commission’s influence permeates various aspects of finance and markets. In economic policy and governance, it plays a key role in the surveillance of national budgetary plans and economic policies, especially for Eurozone members. During the Eurozone crisis, the European Commission assumed a greater role in crisis management, including proposing a recovery fund to address economic challenges.,

Furth7e6rmore, the Commission is a significant player in the realm of regulatory framework and environmental policy. For instance, the European Commission spearheaded the "European Green Deal," an ambitious set of policy initiatives aimed at making the EU climate-neutral by 2050. This initiative involves reviewing existing laws and introducing new legislation across various sectors, demonstrating the Commission's direct impact on investment landscapes and industrial transitions towards sustainability. The Eur5opean Commission also actively enforces EU competition policy, scrutinizing mergers, state aid, and antitrust behavior to ensure fair market conditions across the bloc.,

Li4m3itations and Criticisms

Despite its extensive powers, the European Commission faces various limitations and criticisms. One common critique revolves around its perceived democratic deficit, as its members are appointed by national governments rather than directly elected, leading to questions about accountability. The highly fragmented structure of its Directorates-General (DGs) has also been cited as leading to internal "turf wars" and inefficiencies.

Additionally, the European Commission's authority can be challenged by the intergovernmental nature of EU decision-making, particularly during times of crisis. While the Commission has gained prominence in crisis management, such as during the Eurozone debt crisis, the European Council, composed of heads of state and government, often emerges as the principal decision-maker for urgent issues. Some ob2servers also suggest that the increasing political momentum for a more "forward-looking and agile" competition policy might lead to shifts in how the Commission balances traditional competition principles with broader industrial policy goals.

Eur1opean Commission vs. European Council

The European Commission and the European Council are distinct EU institutions, though their names can lead to confusion. The European Commission is the EU's independent executive arm, responsible for proposing laws, managing the budget, and enforcing EU treaties. Its members, the Commissioners, are appointed and pledge to act in the EU's overall interest, not their home country's. Conversely, the European Council is the EU's highest political body, comprising the heads of state or government of the EU member states, along with its own President and the President of the European Commission. The European Council defines the EU's general political directions and priorities, often setting the strategic agenda, while the European Commission is tasked with translating these broad mandates into concrete legislative proposals and policies.

FAQs

What is the primary role of the European Commission?

The primary role of the European Commission is to be the executive arm of the European Union. It initiates new EU legislation, implements EU policies and the budget, and ensures that EU law is correctly applied across all member states.

How many Commissioners are there in the European Commission?

There are 27 Commissioners in the European Commission, one from each EU member state. These Commissioners form the College of Commissioners, which is led by the President of the European Commission.

Is the European Commission elected?

No, the members of the European Commission are not directly elected. The President of the European Commission is proposed by the European Council and then elected by the European Parliament. The other Commissioners are nominated by their respective national governments in agreement with the President-elect and then collectively approved by the European Parliament.

How does the European Commission influence markets and finance?

The European Commission influences markets and finance through its role in proposing and enforcing regulations related to the single market, competition policy, financial services, and state aid. It also plays a significant role in coordinating economic policies among Eurozone countries and maintaining financial stability across the bloc.