What Is European Parliament?
The European Parliament is the directly elected parliamentary institution of the European Union (EU), serving as one of its primary legislative bodies. As a key entity within European Union Institutions, it represents the citizens of the EU member states and plays a crucial role in the bloc's governance, particularly in shaping legislation and overseeing the EU budget. The European Parliament, alongside the Council of the European Union, is responsible for adopting European legislation, typically based on proposals from the European Commission.54
History and Origin
The origins of the European Parliament can be traced back to the Common Assembly of the European Coal and Steel Community (ECSC), established in 1952.53 Initially, this assembly was a consultative body composed of appointed parliamentarians from national parliaments, possessing no direct legislative powers.51, 52 With the creation of the European Economic Community and Euratom in 1958 through the Treaty of Rome, the Common Assembly expanded its scope, eventually renaming itself the European Parliamentary Assembly and then the European Parliament in 1962.49, 50
A significant turning point occurred in 1979 when the members of the European Parliament were directly elected by universal suffrage for the first time.47, 48 This marked a shift from an appointed assembly to an elected parliament, enhancing its democratic legitimacy within the EU framework.46 Subsequent treaties, notably the Treaty on European Union (Maastricht Treaty) in 1992 and the Lisbon Treaty in 2009, progressively increased the Parliament's legislative and budgetary powers, making it an equal co-legislator with the Council in most policy areas.44, 45 More historical details can be found in a historical overview by the European Parliament.
Key Takeaways
- The European Parliament is one of the two legislative bodies of the European Union, directly elected by EU citizens.
- It shares legislative and budgetary powers with the Council of the European Union, typically acting on proposals from the European Commission.43
- The Parliament has significant supervisory powers over other EU institutions, including the ability to approve or reject the European Commission's appointment and to scrutinize its work.41, 42
- European elections are held every five years, with more than 400 million people eligible to vote, making them the second-largest democratic elections globally.
- While it cannot formally initiate legislation, the European Parliament can request the European Commission to do so.40
Interpreting the European Parliament
The European Parliament's influence is best understood by examining its three main roles: legislative, budgetary, and supervisory. In its legislative capacity, the Parliament, together with the Council of the European Union, adopts EU laws following the ordinary legislative process. This involves reviewing, amending, and ultimately approving or rejecting proposals from the European Commission.38, 39
For instance, in areas like financial regulation, the European Parliament plays a vital role in shaping directives and regulations that impact financial markets across member states.36, 37 Its interpretation of proposed laws significantly influences the final text, affecting everything from consumer protection to the functioning of the Capital Markets Union. The Parliament's ability to amend or reject proposals ensures that the interests of EU citizens are represented in law-making.35
Hypothetical Example
Consider a hypothetical scenario where the European Commission proposes new legislation aimed at standardizing financial disclosures for small and medium-sized enterprises (SMEs) across the EU. The objective is to simplify cross-border investment and reduce administrative burdens.
Upon receiving the proposal, the relevant committees within the European Parliament, particularly the Committee on Economic and Monetary Affairs, would scrutinize the text. Members of the European Parliament (MEPs) might propose amendments to ensure the legislation genuinely supports SMEs, perhaps by introducing simplified reporting thresholds or providing specific exemptions for micro-enterprises. These amendments would then be debated and voted on in plenary sessions. If the Parliament approves the amended text, it would then proceed to the Council of the European Union for their consideration. This collaborative process ensures that the perspectives of elected representatives are integrated into the final law, balancing the Commission's initial proposal with the practical realities faced by businesses and citizens in various member states.
Practical Applications
The European Parliament's functions manifest in several practical applications across the EU's financial and regulatory landscape:
- Legislation Adoption: The European Parliament is a co-legislator in passing numerous EU laws, including those concerning the single market, environmental protection, and consumer rights.33, 34 This directly impacts businesses and citizens by harmonizing standards and regulations across the bloc.
- Budgetary Control: The Parliament shares power with the Council over the entire annual EU budget. It has the final say on the budget and performs democratic oversight to ensure EU funds are properly managed and spent by the European Commission and other institutions.30, 31, 32 The Parliament also approves the EU's long-term financial plan, known as the Multiannual Financial Framework.29 Further information on this can be found on the European Parliament's budgetary powers page.
- Democratic Oversight: Through various tools such as parliamentary questions, committees of inquiry, and the power to dismiss the European Commission via a motion of censure, the European Parliament holds the EU executive accountable.27, 28 This scrutiny extends to international agreements negotiated by the EU, requiring the Parliament's consent before they can take effect.25, 26
- Appointment of Officials: The European Parliament votes on whether to approve the European Council's nominee for President of the European Commission and subsequently approves or rejects the appointment of the Commission as a whole. It also appoints the European Ombudsman and is consulted on appointments for the European Court of Auditors and the president and vice-president of the central banks within the EU.24
Limitations and Criticisms
Despite its expanded powers, the European Parliament faces certain limitations and criticisms. One frequent critique is that, unlike most national parliaments, it does not formally possess the right of legislative initiative; new EU laws are primarily proposed by the European Commission.22, 23 While the Parliament can request the Commission to initiate legislation, it cannot directly introduce a bill.21
Furthermore, the European Parliament has faced accusations of being a "quasi-parliament" due to perceived issues with accountability and the lack of a unified "European demos" it is meant to represent.20 Some critics argue that the Parliament has, at times, become too focused on implementing the "European project" rather than primarily representing its constituents, leading to alienation among voters.19 Concerns regarding ethics and transparency have also been raised, particularly following instances like the Qatargate corruption scandal, which highlighted the need for stronger rules on lobbying and asset declarations for MEPs.18 A Politico.eu analysis acknowledges these criticisms while also noting the Parliament's increasing influence.
European Parliament vs. Council of the European Union
The European Parliament and the Council of the European Union are both essential legislative bodies within the EU, but they differ significantly in their composition, representation, and specific functions.
| Feature | European Parliament | Council of the European Union |
|---|---|---|
| Composition | Directly elected Members of the European Parliament (MEPs) by EU citizens. | Government ministers from each EU member state. |
| Representation | Represents the citizens of the European Union. | Represents the national governments of the EU member states. |
| Legislative Role | Co-legislator; can amend, approve, or reject legislative proposals from the European Commission.17 | Co-legislator; negotiates and adopts EU laws with the Parliament.16 |
| Initiative | Cannot formally initiate legislation, but can request the European Commission to do so.15 | Cannot formally initiate legislation, but can request the European Commission to do so.14 |
| Budget | Shares the power to decide on the annual EU budget and has the final say.13 | Shares the power to decide on the annual EU budget.12 |
| Accountability | The European Commission is accountable to the Parliament.11 | Members are accountable to their respective national governments. |
While both institutions are crucial in adopting EU laws and international agreements, the European Parliament ensures the voice of the citizens is heard, while the Council brings together the interests of the member states.10
FAQs
How often are Members of the European Parliament (MEPs) elected?
MEPs are elected every five years through direct universal suffrage. The latest European elections took place in June 2024.9
Where are the main seats of the European Parliament?
The European Parliament officially has three seats: Strasbourg (France) for plenary sessions, Brussels (Belgium) for committee meetings, and Luxembourg City (Luxembourg) for administrative offices.8
What is the European Parliament's role in the EU budget?
The European Parliament, along with the Council of the European Union, shares the power to decide on the entire annual EU budget. It has the final say on the budget and exercises democratic oversight to ensure proper management of EU funds, conducting a "discharge procedure" for this purpose.5, 6, 7
Can the European Parliament propose new laws?
No, the European Parliament does not formally possess the right of legislative initiative. Only the European Commission can formally initiate new laws within the EU, though the Parliament can request the Commission to propose legislation.3, 4
How does the European Parliament ensure accountability of the European Commission?
The European Parliament scrutinizes the European Commission through various mechanisms, including holding hearings for Commissioner nominees, conducting parliamentary questions, establishing committees of inquiry, and having the power to adopt a motion of censure, which can force the entire European Commission to resign.1, 2